Mangali Prasad Sharma, Kanpur V. Income Tax Officer-1(2), Kanpur

ITA 13/LKW/2015

• Counselvise Citation: 1323714 RSA 2015
• Duration Of Justice: 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 29-04-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 07-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PUNIT KUMAR
• Keywords: Principle of natural justice; Condonation of delay
• Section: 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI. A. K. GARODIA, ACCOUNTANT MEMBER ITA NO.13/LKW/2015 ASSESSMENT YEAR:2004-05 MANGALI PRASAD SHARMA 2/66, MAHESHWARI MOHAL KANPUR V. INCOME TAX OFFICER 1(2) KANPUR TAN/PAN:BJFPS7499G (APPELLANT) (RESPONDENT) S.P. NO. 01/LKW/2015 [ ARISING OUT OFITA NO.13/LKW/2015] ASSESSMENT YEAR:2004-05 MANGALI PRASAD SHARMA 2/66, MAHESHWARI MOHAL KANPUR V. INCOME TAX OFFICER 1(2) KANPUR TAN/PAN:BJFPS7499G (APPLICANT) (RESPONDENT) ASSESSEE BY: NONE (WRITTEN SUBMISSION) DEPARTMENT BY: SHRI. PUNIT KUMAR, D.R. DATE OF HEARING: 29 04 2015 DATE OF PRONOUNCEMENT: 05 06 2015 O R D E R PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) CONFIRMING THE PENALTY LEVIED UNDER SECTION 271(1)(C) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER CALLED IN SHORT THE ACT') AT RS.36,000/-. 2. THIS APPEAL IS FILED LATE BY 24 DAYS, FOR WHICH APPLICATION FOR CONDONATION OF DELAY IS FILED EXPLAINING THE REASON FOR THE DELAY IN FILING OF :- 2 -: THE APPEAL. FINDING FORCE THEREIN, WE CONDONE THE DELAY AND ADMIT THE APPEAL FOR HEARING. 3. SO FAR AS THE PENALTY LEVIED UNDER SECTION 271(1)(C) OF THE ACT IS CONCERNED, WE FIND THAT THE PENALTY WAS LEVIED ON ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF NON-DISCLOSURE OF INTEREST ON THE KVPS AT THE TIME OF ITS MATURITY. AS EXPLAINED BY THE ASSESSEE, HE IS A SENIOR CITIZEN AND HIS INCOME WAS BELOW THE TAXABLE LIMIT, THEREFORE, HE WAS NOT REQUIRED TO FILE THE INCOME-TAX RETURN FOR THE IMPUGNED ASSESSMENT YEAR. ON INFORMATION RECEIVED WITH REGARD TO THE INVESTMENT IN KVPS, THE ASSESSING OFFICER HAS REOPENED THE ASSESSMENT UNDER SECTION 147 OF THE ACT AND COMPLETED THE ASSESSMENT MAKING AN ADDITION OF RS.2,65,000/- TO THE TOTAL INCOME OF THE ASSESSEE DECLARED IN RESPONSE TO NOTICE ISSUED UNDER SECTION 148 OF THE ACT, FOR WHICH PENALTY UNDER SECTION 271(1)(C) OF THE ACT WAS LEVIED. 4. DURING THE PENALTY PROCEEDINGS, THE ASSESSEE HAS STATED THAT THE RETURN WAS NOT FILED, AS HIS INCOME WAS NOT TAXABLE DURING THE IMPUGNED ASSESSMENT YEAR, BUT IN RESPONSE TO NOTICE UNDER SECTION 148 OF THE ACT, THE RETURN WAS FILED DECLARING THE INCOME RECEIVED FROM ALL SOURCES. THE ASSESSING OFFICER WAS NOT CONVINCED WITH THE EXPLANATIONS OF THE ASSESSEE AND LEVIED A PENALTY OF RS.36,000/- WHICH WAS LATER ON CONFIRMED BY THE LD. CIT(A). 5. BEFORE US, NONE WAS PRESENT ON BEHALF OF THE ASSESSEE. HOWEVER, THE ASSESSEE HAS FILED WRITTEN SUBMISSIONS WHICH IS EXTRACTED HEREUNDER:- 'THE INCOME TAX OFFICER-1(2), KANPUR HAS BEEN COMPLETED THE ASSESSMENT U/S 147/143(3)! OF THE I. T. ACT, 1961 ON AN INCOME OF RS. 265000.00 ON 04.11.2009 FOR THE ASSESSMENT YEAR 2004-05 ON DATED 04.11.2009. DURING THE COURSE OF ASSESSMENT PROCEEDINGS ASSESSEE HAS FILED REPLY DATED 16.06.2009 STATING THAT HE HAS PURCHASED KVPS ON DATED 27.05.1998 AND 29.05.1998 AMOUNTING TO :- 3 -: RS. 1640000.00 FROM HEAD POST OFFICE, KANPUR AND MATURITY OF THESE KVPS WAS DUE ON 27.11.2003 AND 29.11.2003 AFTER 5 YEARS AND 6 MONTHS. AT THE TIME OF ASSESSMENT PROCEEDINGS ASSESSEE HAS VOLUNTARILY DECLARED INTEREST INCOME AND DALALI INCOME AMOUNTING TO RS. 229600.00 AND RS. 36000.00 WHICH WAS EARNED DURING THE FINANCIAL YEAR. THE REPLY OF THE ASSESSEE WAS CONSIDERED BY THE INCOME TAX OFFICER SUO MOTTO AND COMPLETED THE ASSESSMENT. THE KVPS OF THE ASSESSEE WAS SEIZED BY THE INCOME-TAX DEPARTMENT ON DATED 22.11.2000 FROM THE HEAD POST OFFICE AND NO INFORMATION WAS GIVEN TO THE ASSESSEE. WHEN THE ASSESSEE REACHED HEAD POST OFFICE AT THE TIME OF MATURITY OF KVPS HEAD POST OFFICE WAS NOT IN A POSITION TO TALL THE WHERE ABOUT OF KVPS AT THE LAST HE ENQUIRED THROUGH RTI AND AS PER DIRECTION OF RTI DEPARTMENT, INCOME TAX DEPARTMENT DECLARED HIS KVPS WAS SEIZED FROM THE HEAD POST OFFICE ON DATED 22.11.2000. IN THESE CIRCUMSTANCES ASSESSEE HOW DECLARED HIS KVPS INTEREST INCOME WITHOUT ANY EXISTENCE AND HE HAS NO HOPE TO RECOVER THE KVPS AGAIN. THUS AS PER REPLY OF THE ASSESSEE DURING THE COURSE OF HEARING OF THE CASE AND THE INCOME TAX OFFICER WAS COMPLETED THE ASSESSMENT ON THE ASSESSEE'S DECLARED INCOME AS WELL AS NEITHER ANY INCOME WAS CONCEALED NOR ANY INACCURATE PARTICULARS OF THE INCOME WAS FILED BY THE ASSESSEE. AFTER COMPLETED THE ASSESSMENT HE ALSO PAID FULL TAX AS PER NOTICE OF DEMAND BY THE INCOME TAX DEPARTMENT. THE PENALTY IMPOSED U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 AMOUNTING TO RS.34000.00 IS UNJUSTIFIED, ARBITRARY AND AGAINST THE PRINCIPAL OF NATURAL JUSTICE. 6. THE LD. D.R., ON THE OTHER HAND, HAS PLACED RELIANCE UPON THE ORDER OF THE LD. CIT(A). :- 4 -: 7. HAVING CAREFULLY EXAMINED THE WRITTEN SUBMISSIONS FILED BY THE ASSESSEE, WE FIND THAT THE ASSESSEE HAS PROPERLY EXPLAINED THE RECEIPT OF INCOME FROM DECLARED SOURCES. WHATEVER LAPSES WERE OCCURRED THAT WAS ON ACCOUNT OF BONA-FIDE BELIEF AND NON-COOPERATION OF THE POSTAL AUTHORITIES, FOR WHICH ASSESSEE SHOULD NOT BE SLAPPED WITH PENALTY UNDER SECTION 271(1)(C) OF THE ACT. WE, THEREFORE, SET ASIDE THE ORDER OF THE LD. CIT(A) AND DELETE THE PENALTY. 8. THE ASSESSEE HAS ALSO FILED STAY PETITION IN THIS CASE. SINCE THE APPEAL OF THE ASSESSEE HAS BEEN DISPOSED OF, THE STAY PETITION HAS BECOME INFRUCTUOUS AND THE SAME IS DISMISSED. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED AND STAY PETITION IS DISMISSED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTIONED PAGE. SD/- SD/- [A. K. GARODIA] [SUNIL KUMAR YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:5 TH JUNE, 2015 JJ:2904 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR ASSISTANT REGISTRAR