Neelam Verma, Parwanoo V. Addl. CIT, Range, Solan

ITA 1216/CHANDI/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 5993 (ITAT-CHANDIGARH)
• Duration Of Justice: 10 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 14-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Section: 273B; 271D; 27

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, SMC, CHANDIGARH , BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NO. 1216/CHD/2018 / ASSESSMENT YEAR : 2007-08 SMT NEELAM VERMA, W/O SHRI V.P. VERMA, C/O HOTEL MONAAL PALACE, SECTOR 2, PARWANOO, DISTT. SOLAN (H.P.) VS. THE ADDL. CIT, SOLAN RANGE, SOLAN ./PAN NO: ABOPV8910H / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI SURINDER BABBAR, CA ' ! / REVENUE BY : SH. MANJIT SINGH, CIT DR # $ % /DATE OF HEARING : 25.07.2019 &'() % / DATE OF PRONOUNCEMENT : 01.08.2019 / ORDER THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 13.07.2018 OF THE COMMISSIONER OF INCO ME TAX (APPEALS), SHIMLA [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE ASSESSEE IN THIS APPEAL HAS AGITATED THE LEV Y OF PENALTY U/S 271D OF THE INCOME TAX ACT, 1961 (IN SHORT 'THE ACT ') ON ACCOUNT OF ACCEPTING LOAN IN CASH. THE PLEA OF THE ASSESSEE H AS BEEN THAT THERE WERE CERTAIN REASONS BECAUSE OF WHICH THE ASSESSEE HAD TO ACCEPT THE PAYMENT IN CASH AND THAT THE CASE OF THE ASSESSEE F ALLS WITHIN THE SCOPE OF SECTION 273B O F THE ACT. 3. I HAVE HEARD THE RIVAL CONTENTIONS. THE LD. COUN SEL FOR THE ASSESSEE HAS EXPLAINED THAT THERE WAS A HOTEL RU N BY THE HUSBAND OF ITA NO. 1216-CHD -2019- MRS. NEELAM VERMA, SOLAN 2 THE ASSESSEE WHICH WAS FINANCED BY HARYANA FINANCIA L CORP. LTD, SHIMLA (IN SHORT HPFC). THE HUSBAND OF THE ASSESS EE INCURRED LOSSES IN THE HOTEL BUSINESS AND, HENCE, COULD NOT PAY THE INSTALLMENT OF LOAN AND INTEREST TO HPFC, SHIMLA. THE HOTEL WAS PUT T O AUCTION WHICH WAS PURCHASED BY THE ASSESSEE. THE PURCHASE AMOUNT WAS SETTLED AT RS. 46.24 LACS . THE ASSESSEE HAD TO PAY THE AFORESAID TOTAL PAYME NT PROMPTLY TO TAKE THE POSSESSION OF THE HOTEL, OTHE RWISE, IT COULD HAVE GONE TO SOME OTHER PERSON. THAT FOR THAT PURPOSE, SHE ARRANGED MONEY AND ALSO TOOK LOAN FROM VARIOUS PERSONS. THAT AN AMOUNT OF RS. 2 LACS ON 27.2.2006 AND FURTHER AN AMOUNT OF RS. 4 LACS ON 17.11.2006 WAS TAKEN AS LOAN BY THE ASSESSEE FROM ONE SHRI S.S. THAKUR FOR DEPOSITING THE SAME WITH HPFC. THE ASSESSING OFFICER TO VER IFY THE GENUINENESS OF THE TRANSACTIONS AND CREDITWORTHINESS OF THE CRE DITOR SUMMONED SHRI S.S. THAKUR, WHO CONFIRMED THE TRANSACTIONS. THE AS SESSING OFFICER, THEREFORE, DID NOT DOUBT THE GENUINENESS OF THE TRA NSACTIONS OR THE CREDITWORTHINESS OF THE CREDITOR, HOWEVER, SINCE TH E LOAN WAS TAKEN IN CASH, THE ASSESSING OFFICER IMPOSED PENALTY U/S 27 1D OF THE ACT. THE COUNSEL OF THE ASSESSEE IN THIS RESPECT HAS EXPLAIN ED THAT THE ASSESSEE WAS IN DIRE NEED OF MONEY WHICH WAS TO BE PROMPTL Y DEPOSITED WITH THE HPFC SHIMLA. THAT THE HPFC SHIMLA HAD REFUS ED TO ACCEPT THE DEPOSITS THROUGH CHEQUES AS IN THE PAST SEVERAL CHE QUES ISSUED BY THE ASSESSEE WERE DISHONORED. THE LD. COUNSEL IN THIS RESPECT HAS RELIED ON THE ACCOUNT STATEMENT OF THE ASSESSEE WITH HPFC SHIMLA, WHEREIN, IT HAS BEEN SHOWN THAT THE CHEQUES DEPOSITED BY THE ASSESSEE HAVE BEEN ITA NO. 1216-CHD -2019- MRS. NEELAM VERMA, SOLAN 3 RETURNED BACK ON SEVERAL OCCASIONS. SINCE THE HPFC SHIMLA INSISTED FOR CASH, THE ASSESSEE, ACCORDINGLY, RECEIVED LOAN IN CASH FROM SHRI S.S. THAKUR AND ON THE SAME DATE DEPOSITED THE SAID CASH WITH THE HPFC SHIMLA. THAT UNDER SUCH COMPELLING CIRCUMSTA NCES, THE ASSESSEE HAD TO ACCEPT THE LOAN IN CASH. THAT THERE WAS NO I NTENTION OF THE ASSESSEE TO VIOLATE THE PROVISIONS OF SECTION 269SS OF THE ACT. 4. THE AFORESAID CONTENTION OF THE ASSESSEE IS CORR OBORATED WITH THE EVIDENCES ON THE FILE ESPECIALLY THE ACCOUNT STATEM ENT OF THE ASSESSEE WITH HPFC SHIMLA. I AM, THEREFORE, OF THE VIEW T HAT THE ASSESSEES CASE FALLS WITHIN THE EXCEPTION AS PROVIDED U/S 273 B OF THE ACT. THE PENALTY IN THIS CASE, IN MY VIEW, IS NOT WARRANTED, THE SAME IS ACCORDINGLY ORDERED TO BE DELETED. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 01.08.2019. SD/ - ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 01.08.2019 .. '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE ITA NO. 1216-CHD -2019- MRS. NEELAM VERMA, SOLAN 4 '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR