Mysore Ammonia Pvt Ltd , Bangalore V. Assistant Commissioner of Income TAx Circle-12(1), Bangalore

ITA 1280/BANG/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4793 (ITAT-BANGALORE)
• Duration Of Justice: 11 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 08-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR P V PRADEEP KUMAR
• Section: 27; 139

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, B ENGALURU BEFORE S HRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER I TA NO. 1280 / BANG/2 0 1 7 (ASSESSMENT YEAR: 20 1 1 - 12 ) MYSORE AMMONIA (P) LTD., NO.233, 3 RD FLOOR, RAJANIGAN DHA GARDEN APARTMENT, NO.21, VITTAL MALLYA ROAD, BENGALURU - 560001. PAN:A ABCM1749E VS. APPELLANT ASST.COMMISSIONER OF INCOME - TAX CIRCLE 12(1), BENGALURU. RESPONDENT APPELLANT BY : SHRI ANIL KUMAR, CA. RESPONDENT BY : DR.P.V.PRADEEP K UMAR, ADDL. CIT(DR) DATE OF HEARING : 22 /03/2018 DATE OF PRONOUNCEMENT : 31 /05/2018 O R D E R PER I NTURI RAMA RAO, AM : THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) - 4, B ENGALURU, [CIT(A)] DATED 27/03/2017, CONFIRMING LEVY OF PENALTY U/S 271F OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] FOR THE ASSESSMENT YEAR 2011 - 12. 2. BRIEFLY FACTS OF THE CASE ARE THAT THE ASSESSEE IS A COMPANY DULY INC ORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT,1956. THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2011 - 12 WAS FILED ON 01/08/2012 I.E. 5 MONTHS AFTER THE END OF THE RELEVANT ASSESSMENT YEAR. THEREFORE, THE ASSESSING OFFICER (AO) ISSUED NOTICE U/S 27 1F DATED 02/09/2014 PROPOSING TO LEVY PENALTY FOR DELAY IN FILING RETURN OF INCOME. IN RESPONSE TO SHOW CAUSE NOTICE, THE ASSESSEE SUBMITTED EXPLANATION VIDE LETTER DATED 11/09/2014 STATING THAT THE ASSESSEE HAD HEAD OFFICE AT BANGALORE AND HAD 4 BRANCHES SITUATED AT CHENNAI, MANGALORE, MUMBAI ITA NO . 1280 / BANG/20 17 PAGE 2 OF 3 AND HYDERABAD. THE ACCOUNTS OF THE BRANCH OFFICE WERE AUDITED BY THE LOCAL AUDITORS OF THE RESPECTIVE STATIONS AND DELA Y IN FILING RETURN OF INCOME HAD CAUSED ON ACCOUNT OF DELAY IN TALLYING ACCOUNTS FROM RESPECTIVE BRANCHES. IT WAS FURTHER CONTENDED THAT THE PROVISIONS OF SECTION 271F DO NOT PRESCRIBE PENALTY FOR NOT FILING RETURN OF INCOME WITHIN DUE DATE OF INCOME. IT ONLY PRESCRIBES FAILURE TO FILE RETURN OF INCOME U / S 139. THUS IT WAS PRAYED THAT PENALTY MAY BE DELETED. 3. ON APPEAL BEFORE THE LD.CIT(A), THE SAME CAME TO BE CONFIRMED. 4. BEING AGGRIEVED, THE ASSESSEE IS BEFORE US IN THE PRESENT APPEAL. THE LEARNED AR OF THE ASSESSEE REITERATED THE SAME EXPLANATION WHICH WERE MADE BEFORE THE LOWER AUTHORITIES AN D PRAYED THAT PENALTY MAY BE DELETED. ON THE OTHER HAND, LD. ADDL.CIT(DR) SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 5. WE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE ISSUE IN THE PRESENT APPEAL IS WHETHER THE PENALTY U/S 271F CA N BE LEVIED IN CASE WHERE THE ASSESSEE FAILS TO FILE RETURN OF INCOME WITHIN DUE DATE PRESCRIBED U/S 139(1). THE PROVISIONS OF SECTION 271F ARE EXTRACTED HEREUNDER FOR READY REFERENCE: PENALTY FOR FAILURE TO FURNISH RETURN OF INCOME 271F. IF A PERSON WHO IS REQUIRED TO FURNISH A RETURN OF HIS INCOME, AS REQUIRED UNDER SUB - SECTION (1) OF SECTION 139 OR BY THE PROVISOS TO THAT SUB - SECTION, FAILS TO FURNISH SUCH RETURN BEFORE THE END OF THE RELEVANT ASSESSMENT YEAR, THE ASSESSING OFFICER MAY DIRECT THAT SUCH PERSON SHALL PAY, BY WAY OF PENALTY, A SUM OF FIVE THOUSAND RUPEES. FROM MERE PERUSAL OF THE ABOVE PROVISIONS, IT IS CLEAR THAT THE ACT PRESCRIBES PENALTY ONLY IN CASE WHERE RETURN IS NOT FILED U/S 139. THE BELATED RETURN OF INCOME I.E. BEYOND THE END OF RELEVANT ASSESSMENT YEAR IS ALSO A RETURN U/S 139. THEREFORE, IN OUR CONSIDERED OPINION, PENALTY CANNOT BE LEVIED. IT IS NOT A FIT CASE FOR LEVY OF PENALTY. ACCORDINGLY PENALTY IS DELETED. ITA NO . 1280 / BANG/20 17 PAGE 3 OF 3 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLO WED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST MAY , 2018 S D/ - SD/ - ( SUNIL KUMAR YADAV ) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : BENGALURU. D A T E D : 31 / 0 5 /201 8 SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESP ONDENT 3 CIT(A) 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME - TAX APPELLATE T RIBUNAL BANGALORE