Amreki Nagrik Sahkari Bank Ltd., Rajkot V. The DIT, (I & CI), Ahmedabad

ITA 1044/AHD/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6220 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 24-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 27

Judgement Text

ITA NO. 1044/AHD/2015 AMRELI NAGRIK SAHKARI BANK LTD VS. DIT 9I&CI) A.Y. 2014-15 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND MAHAVIR PRASAD JM] I.T.A. NO. 1044/AHD/2015 ASSESSMENT YEAR : 2014-15 AMRELI NAGRIK SAHKARI BANK LTD .....APPELLANT NAGRIK BHAVAN, KERIA ROAD, AMRELI [PAN : AAATA 3191 J] VS. THE DIT (I & CI) .RESPONDENT AHMEDABAD APPEARANCES BY: NONE FOR THE APPELLANT JAMES KURIAN FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 25.01.2018 DATE OF PRONOUNCING THE ORDER : 29.01.2018 O R D E R PER PRAMOD KUMAR, AM: 1. BY WAY OF THIS APPEAL, THE ASSESSEE-APPELLANT HA S CHALLENGED CORRECTNESS OF THE ORDER DATED 18.02.2015 PASSED BY THE DIRECTOR OF IN COME-TAX (I&CI), AHMEDABAD, IMPOSING A PENALTY OF RS. 10,900/- UNDER SECTION 27 1FA OF THE INCOME-TAX ACT, 1961, FOR THE ASSESSMENT YEAR 2014-15. 2. TO ADJUDICATE ON THIS APPEAL, ONLY A FEW MATERIA L FACTS ARE REQUIRED TO BE TAKEN NOTE OF. IT IS A CASE IN WHICH THE ASSESSEE COULD NOT FURNISH THE AIR INFORMATION IN TIME ON ACCOUNT OF THE EXPLANATION, WHICH IS STATED TO B E AS FOLLOWS:- OUR BANK HAS IMPLEMENTED CBS PROGRAM EASY CORE APP LICATION OF ACUTE INFORMATICS PVT. LTD., AHMEDABAD W.E.F. 16.12.2013 AS PER THE INSTRUCTIONS ISSUED BY RESERVE BANK OF INDIA. THERE WERE SOME PROBLEMS IN CREATING AIR RETURN IN NEWLY PURCHASED PROGRAM. AND HENCE, WE WERE IN COM MUNICATION BY PHONE WITH THE SUPPORT TEAM OF ACUTE INFORMATICS PVT LTD REPEA TEDLY. EVEN THOUGH, THE PROBLEM WAS NOT SOLVED, WE HAD EMAILED THEM IN RESP ECT OF COLUMN FOR JOINT PARTY TRANSACTION DETAILS AND COUNT. ITA NO. 1044/AHD/2015 AMRELI NAGRIK SAHKARI BANK LTD VS. DIT 9I&CI) A.Y. 2014-15 PAGE 2 OF 2 AS SOON AS, THE QUERY WAS SOLVED BY ACUTE INFORMATI CS PVT. LTD. WE PREPARED AIR RETURN AND FILLED WITH THE NSDL CENTRE, RAJKOT. WE ENCLOSE HEREWITH THE COPY OF CORRESPONDENCE OF E-MAIL WITH THE SUPPORT T EAM OF ACUTE INFORMATICS PVT LTD. DELAY IN SUBMISSION OF AIR RETURN IS DUE TO TE CHNICAL FAULT 3. THIS EXPLANATION OF THE ASSESSEE WAS, HOWEVER, R EJECTED ON THE GROUND THAT IT IS TOO GENERAL IN NATURE, AND, THEREFORE, DOES NOT MER IT ACCEPTANCE. 4. THE ASSESSEE IS AGGRIEVED AND IS IN APPEAL BEFOR E US. 5. NONE APPEARED ON BEHALF OF THE ASSESSEE. WE HAVE HEARD THE LEARNED DEPARTMENTAL REPRESENTATIVE AND PERUSED THE MATERIA L ON RECORD AND DULY CONSIDERED THE FACTS OF THE CASE IN THE LIGHT OF APPLICABLE LE GAL POSITION. 6. WE FIND THAT THE ASSESSEES EXPLANATION FOR THE DELAY IN SUBMISSION OF THE AIR INFORMATION IS DUE TO SOME TECHNICAL FAULT IN THE S OFTWARE, WITH THE HELP OF WHICH AIR INFORMATION WAS TO BE FURNISHED. WE HAVE ALSO NOTE D THAT THE ASSESSEE HAS, UPON OBTAINING NECESSARY TECHNICAL ASSISTANCE FROM THE S OFTWARE VENDOR, DULY SUBMITTED THE AIR INFORMATION. IN OUR CONSIDERED VIEW, THE EXPLA NATION OF THE ASSESSEE IS A REASONABLE EXPLANATION WHICH OUGHT TO HAVE BEEN ACC EPTED BY THE LEARNED DIRECTOR OF INCOME-TAX (I&CI). WE, THEREFORE, DEEM IT FIT AND PROPER TO DELETE THE IMPUGNED PENALTY OF RS.10,900/- MADE ON ACCOUNT OF DELAY WHICH, IN O UR UNDERSTANDING, IS ON ACCOUNT OF A REASONABLE CAUSE. THE ASSESSEE THUS SUCCEEDS IN TH E APPEAL AND THE PENALTY OF RS.10,900/- STANDS DELETED. 7. IN THE RESULT, APPEAL IS ALLOWED. ORDER PRONOU NCED IN THE OPEN COURT ON THIS 29 TH DAY OF JANUARY, 2018. SD/- SD/- MAHAVIR PRASAD PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 29 TH DAY OF JANUARY, 2018 **BT* COPIES TO: (1) THE APPELLANT (4) CIT(A) (2) THE RESPONDENT (5) DEPARTMENTAL REPRESENTATIVE (3) COMMISSIONER (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD