Ah. Kanti Prasad Agarwal, Agra V. I.T.O.-4(2), Agra

ITA 113/AGR/2012

• Counselvise Citation: 11320314 RSA 2012
• Duration Of Justice: 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 19-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUHAIL AKHTAR
• Keywords: Reasonable cause
• Section: 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, SMC, AGRA BEFORE SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO.113/AGR/2012 ASSESSMENT YEAR : 2006-07 SHRI KANTI PRASAD AGARWAL, VS. INCOME TAX OFFIC ER 4(2), D-15, KAMLA NAGAR, AGRA. AGRA. (PAN: AAUPA 2765 J). (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ANURAG SINHA, ADVOCATE RESPONDENT BY : SHRI SUHAIL AKHTAR, JR. D.R. DATE OF HEARING : 14.06.2012 DATE OF PRONOUNCEMENT : 20.07.2012 ORDER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 26.12.2011 PASSED BY THE LD. CIT(A)-II, AGRA FOR ASSESSMENT YE AR 2006-07. 2. THE EFFECTIVE GROUND RAISED IN THE APPEAL IS IN RESPECT OF PENALTY OF RS.10,000./- LEVIED UNDER SECTION 271(1)(B) OF THE INCOME TAX ACT, 1961 (THE ACT HEREINAFTER). 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSI NG OFFICER (A.O.) ISSUED NOTICE UNDER SECTION 142(1) OF THE ACT DATED 17.07.2008 IN WHICH DATE OF HEARING WAS FIXED ON 30.07.2008. THE ASSESSEE HAS FAILED TO CO MPLY WITH THE SAID NOTICE. THE ITA NO.113/AGR/2012 A.Y. 2006-07 2 A.O. AGAIN ISSUED NOTICE UNDER SECTION 142(1) OF TH E ACT ON 16.09.2008 FOR WHICH COMPLIANCE WAS FIXED ON 19.09.2008. IN RESPONSE TO THAT NOTICE, THE ASSESSEES AUTHORISED REPRESENTATIVE APPEARED BEFORE THE A.O. AND FURNISHED WRITTEN REPLIES AND OTHER NECESSARY DOCUMENTS AND ALSO PRODUCED BOO KS OF ACCOUNT AND VOUCHERS. THE CASE WAS DISCUSSED BY THE A.O. AND PASSED ORDER DATED 05.12.2008. THE A.O. LEVIED PENALTY OF RS.10,000/- UNDER SECTION 271(1)( B) OF THE ACT FOR NON- COMPLIANCE OF NOTICE DATED 17.07.2008. THE CIT(A) DISMISSED THE ASSESSEES APPEAL CONFIRMING THE PENALTY AS UNDER :- (CIT(A) P ARAGRAPH NO.4) I HAVE CONSIDERED THE MATER AND I AM OF THE OPINIO N THAT THE REASONS GIVEN FOR NON-COMPLIANCE OF STATUTORY NOTIC ES CANNOT BE SAID TO BE REASONABLE CAUSE. ONCE THE NOTICES WERE ISSU ED BY THE AO AND SERVED ON THE ASSESSEE IT WAS INCUMBENT ON THE PART OF THE ASSESSEE TO RESPOND TO THE SAME, WHICH HAS NOT BEEN DONE. THER EFORE, PENALTY IMPOSED BY THE AO IS CONFIRMED. 4. I HAVE HEARD THE LD. AUTHORISED REPRESENTATIVE O F THE PARTIES AND THE RECORDS PERUSED. SECTION 271(1)(B) OF THE ACT PROVIDES THA T IF THE A.O. IN THE COURSE OF ANY PROCEEDINGS UNDER THIS ACT IS SATISFIED THAT ANY PE RSON HAS FAILED TO COMPLY WITH A NOTICE UNDER SUB-SECTION (2) OF SECTION 115WD OR UN DER SUB-SECTION (2) OF SECTION 115WE OR UNDER SUB-SECTION (1) OF SECTION 142 OF SU B-SECTION (2) OF SECTION 143 OR FAILS TO COMPLY WITH A DIRECTION ISSUED UNDER SUB-S ECTION (2A) OF SECTION 142, THE PENALTY SUM OF RS.10,000/- FOR EACH SUCH FAILURE IS LEVIABLE. THE QUESTION WHICH ARISE AS TO WHAT CONSTITUTE AN OFFENCE UNDER THAT S AID SECTION FOR NON-COMPLIANCE OF ITA NO.113/AGR/2012 A.Y. 2006-07 3 NOTICES. PENALTY PROVISION IN THAT SECTION WILL BE ATTRACTED ONLY IF THE OFFENCE IS SPELT OUT CLEARLY UNDER SECTION 142(1). THE A.O. M AY REQUIRE ATTENDANCE AND ASK THE ASSESSEE TO PRODUCE EVIDENCE ON WHICH HE MAY SE EK TO RELY UPON. IF THE ASSESSEE EITHER ATTEND OR PRODUCE THE DOCUMENTS, HE HAS SUFFICIENTLY COMPLIED WITH THE LAW WITH THE RESULT. IN THE CASE UNDER CONSIDE RATION, WE NOTICE THAT THE A.O. AGAIN ISSUED NOTICE UNDER SECTION 142(1) ON 16 TH SEPTEMBER, 2008 OF WHICH COMPLIANCE HAS BEEN MADE BY THE ASSESSEE AND ACCORD INGLY ASSESSMENT WAS MADE ON 05.12.2008. THE QUESTIONNAIRE ISSUED ALONG WITH NOTICE DATED 17.07.2008 HAS BEEN SUBSEQUENTLY COMPLIED WITH. THE A.O. DID NOT SPELL OUT CLEARLY IN THE PENALTY ORDER WHY THE PENALTY WAS LEVIED FOR NON- COMPLIANC E OF NOTICE DATED 17.07.2008. IN ABSENCE OF SUCH SPECIFIC REQUIREMENT, PARTICULAR LY WHEN THE A.O. ISSUED SUBSEQUENT NOTICE AND THE ASSESSMENT ORDER PASSED S UBSEQUENTLY TO THAT DATE OF HEARING I.E. 17.07.2008, UNDER THE CIRCUMSTANCES, I FIND THAT IT IS NOT A FIT CASE OF LEVY OF PENALTY UNDER SECTION 271(1)(B) OF THE ACT. I, THEREFORE, CANCEL THE PENALTY OF RS.10,000/- SUSTAINED BY THE CIT(A). 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . (ORDER PRONOUNCED IN THE OPEN COURT) SD/- (A.L. GEHLOT) ACCOUNTANT MEMBER PBN/* ITA NO.113/AGR/2012 A.Y. 2006-07 4 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, AGRA BENCH, AGRA 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME-TAX APPELLATE TRIBUNAL, AGRA TRUE COPY