Krishi Utpadan Mandli Samiti, Bulandshahr V. The ACIT., Bulandshahr

ITA 1180/DEL/2009

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 9677 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2009
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 02-09-2009
• Assessment Year: 2004-2005
• Appeal Filed On: 30-03-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BK GUPTA
• Keywords: Bonafide belief; Reasonable cause
• Section: 12A

Judgement Text

I.T.A. NO.1180/DEL/2009 1 IN THE INCOME TAX APPELLATE TRIBUNAL, NEW DELHI, BENCH D BEFORE SHRI K.G.BANSAL, ACCOUTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER ITA NO. 1180 /DEL/2009 (ASSESSMENT YEAR 2004-05) KRISHI UTPADAN MANDI SAMITI, VS. ACIT, BULANDSHAHR JAHANGIRABAD, DISTT. BULANDSHAHR U.P. (APPELLANTS) (RESPONDENTS) APPELLANT BY: SHRI SANJAY KUMAR, CA RESPONDENT BY: SHRI B K GUPTA, SR. DR ORDER PER GEORGE MATHAN, JM: 1. THIS APPEAL BY THE ASSESSEE HAS BEEN PREFERRED A GAINST THE ORDER OF LD. CIT(A) MEERUT IN APPEAL NO.574/200 6- 07 DATED 24.11.2008 FOR THE ASSESSMENT YEAR 2004-0 5 AGAINST THE CONFIRMATION OF LEVY OF PENALTY U/S 271 B OF THE ACT. SHRI SANJAY KUMAR, CA APPEARED ON BEHALF OF THE ASSESSEE AND SHRI B K GUPTA, LD. D.R. REPRESENT ED ON BEHALF OF THE REVENUE. 2. AT THE TIME OF HEARING, IT WAS FAIRLY AGREED BY BOTH THE SIDES THAT THE LD. CIT(A) HAD CONFIRMED THE LEVY OF PENALTY U/S 271B ON THE GROUND THAT THE ASSESSEE HA D NOT BEEN GRANTED REGISTRATION U/S 12A. IT WAS FURT HER I.T.A. NO.1180/DEL/2009 2 AGREED BY BOTH THE SIDES THAT THE CASE OF THE ASSES SEE IS COVERED BY THE DECISION OF COORDINATE BENCH OF THIS TRIBUNAL IN I.T.A. NO.1182/DEL/2009 DATED 24.08.200 9. IT WAS FURTHER AGREED BY BOTH THE SIDES THAT THE AS SESSEE HAVING BEEN GRANTED REGISTRATION U/S 12A THE ISSUE OF LEVY OF PENALTY U/S 271B IS ALSO COVERED BY THE DEC ISION OF COORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF M/S. KRISHI UTPADAN MANDI SAMITI KHURJA, DISTT. BULANDSHAHR IN I.T.A. NO.1884-1886/DEL/2009 DATED 16.07.2009 WHEREIN THE COORDINATE BENCH OF THIS TRIBUNAL HAS HELD AS FOLLOWS: WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL PLACED ON RECORD. WE FIND MERIT IN THE ARGUMENTS OF LD. COUNSEL, WHICH REMAINS TO BE UNCONTROVERSIAL BY REVENUE IN EFFECTIVE TERMS I.E. TO SAY THAT ASSESSEE WAS GRANTED REGISTRATION W.E.F. 1.4.2002. IT IS AN ENTITY CREATED BY STATE LAW IN CARRYING OUT ANY BUSINESS TRANSACTIONS, NOT LIABLE FOR AUDIT U/S 44AB AND IN ANY CASE GIVES ASSESSEE BONAFIDE BELIEF, CANNOT BE HELD TO BE NOT GENUINE. IN VIEW OF THESE FACTS, WE HOLD THAT ON THESE FACTS PENALTY CANNOT BE IMPOSED ON THE ASSESSEE, WHICH AR E DELETED. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEE ARE ALLOWED. 3. WE HAVE CONSIDERED THE SUBMISSIONS. WE HAVE ALSO PERUSED THE ORDER OF COORDINATE BENCH OF THIS TRIBU NAL AS ALSO THE ORDERS OF THE LOWER AUTHORITIES. IT IS NOTICED THAT THE ASSESSEE HAS BEEN GRANTED REGISTRATION U/S 12A I.T.A. NO.1180/DEL/2009 3 W.E.F. 1.4.2002. I IS FURTHER NOTICED THAT THE ISS UE OF LEVY OF PENALTY U/S 271B IS ALSO COVERED BY THE DEC ISION OF COORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF SISTER CONCERN OF THE ASSESSEE WHEREIN THE PENALTY AS LEVIED HAS BEEN DELETED BY ACCEPTING THE REASONABLE CAUSE AND BONA-FIDE BELIEF OF THE ASSESSEE. IN THE SE CIRCUMSTANCES, RESPECTFULLY FOLLOWING THE DECISION OF COORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF KR ISHI UTPADAN MADNI SAMITI, KHURJA, DISTT. BULANDSHAHR REFERRED TO SUPRA, THE FINDING OF LD. CIT(A) ON THI S ISSUE IS REVERSED AND THE PENALTY AS LEVIED BY THE A.O. AND ALSO CONFIRMED BY THE CIT(A) IS DELETED. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. 5. THIS DECISION WAS PRONOUNCED IN THE OPEN COURT O N 02.09.2009. SD/- SD/- (K.G. BANSAL) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:4 TH SEP., 2009 SP. COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT TRUE COPY: BY ORDER 4. CIT(A) 5. DR DY. REGISTRAR, ITAT, NEW DELHI