Sub Registrar, Vadnagar, Gandhinagar V. The DIT(I&CI), Ahmedabad

ITA 1429/AHD/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6010 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2015-2016
• Appeal Filed On: 27-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 273B; 201

Judgement Text

, CKH CKHCKH CKH IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER !# I.T.A. NOS. 1427, 1428 & 1429/AHD/2016 ( / ASSESSMENT YEAR : 2015-16) SUB REGISTRAR DHANSURA, C/O. CA MANOJ LEKINWALA & CO., PLOT NO.289, NR. GH-6 CIRCLE, SECTOR-29, GANDHINAGAR 382 029 # VS. DIRECTOR OF INCOME TAX (I&CI), AHMEDABAD & INCOME TAX OFFICER, SARBARKANTHA, WARD 1, HIMATNAGAR $ # % & # PAN/GIR NO. : AAALS 3440 C ( !$' / APPELLANT ) .. ( ($' # RESPONDENT ) !$') # APPELLANT BY : --NONE-- ($'*) / RESPONDENT BY : SHRI MUDIT NAGPAL, SR.D.R. + ,*-. / DATE OF HEARING 27/02/2018 /012*-. / DATE OF PRONOUNCEMENT 28/02/2018 3# O R D E R PER MAHAVIR PRASAD, JUDICIAL MEMBER : THESE ARE THREE APPEALS BY THE APPELLANT AGAINST THE SEPARATE ORDER OF THE DIRECTOR OF INCOME TAX (I&CI), AHMEDABAD, 31 /03/2016 FOR IMPOSING OF PENALTY U/S.271FA FOR ASSESSMENT YEAR ( AY) 2015-16. 2. SINCE IN ALL THREE APPEALS ASSESSEE ARE SAME AND ISSUES ARE COMMON ONLY AMOUNTS ARE DIFFERENT. THEREFORE, FOR THE SAKE OF CONVENIENCE, WE WOULD LIKE TO DISPOSE OF ALL THREE APPEALS BY WAY O F A COMMON ORDER. FOLLOWING GROUNDS HAVE TAKEN BY THE DEPARTMENT IN A LL THREE APPEALS: ITA NOS.1427, 1428 & 1429/AHD/2016 SUB REGISTRAR DHANSURA VS. DIT(I&CI) ASST.YEAR 2015-16 - 2 - 2.1 IN ITA NO.1427/AHD/2016 FOR AY 2015-16: PENALTY UNDER 271 FA CANNOT BE IMPOSED IF THERE IS REASONABLE CAUSE FOR DELAY IN FURNISHING THE ANNUAL INFORMATION RETU RN. AS PER THE FACTS THE DELAY IS DUE TO THE PERSON IN CHARGE WAS NEWLY RECRUITED AND NEITHER WAS AWARE OF THE INCOME TAX P ROVISION NOR THE DEPARTMENTAL AUTHORITY INFORMED HIM ABOUT HIS RESPO NSIBILITY OF DOING THE SAME. THIS WAS A GENUINE FACT FOR THE DELAY AND AS SOON AS THE ASSESSEE COMES TO KNOW ABOUT HIS RESPONSIBILITY WIT H RESPECT TO 285BA THE SAID RETURN HAS BEEN FILLED WITHIN TIME SPECIFI ED IN THE NOTICE. AS PER ORDER DATED 30-3-2016 ASSESSEE WAS IMPOSED W ITH PENALTY U/S 271 FA (IN CASE OF FAILURE TO FURNISH ANNUAL INFORM ATION RETURN) OF RS.100/- PER DAY AMOUNTING TO RS.8500/-. AS THE DELAY IS DUE TO REASONABLE CAUSE AND THE SAM E HAS BEEN CORRECTED BY FILLING THE RETURN WITHIN THE TIME SPE CIFIED IN THE NOTICE HENCE THE SAID PENALTY OF RS.8500 IS TO BE DELETED. 2.2 IN ITA NO.1428/AHD/2016 FOR AY 2015-16: PENALTY UNDER 271 FA CANNOT BE IMPOSED IF THERE IS REASONABLE CAUSE FOR DELAY IN FURNISHING THE ANNUAL INFORMATION RETU RN. AS PER THE FACTS THE DELAY IS DUE TO THE PERSON IN CHARGE WAS NEWLY RECRUITED AND NEITHER WAS AWARE OF THE INCOME TAX P ROVISION NOR THE DEPARTMENTAL AUTHORITY INFORMED HIM ABOUT HIS RESPO NSIBILITY OF DOING THE SAME. THIS WAS A GENUINE FACT FOR THE DELAY AND AS SOON AS THE ASSESSEE COMES TO KNOW ABOUT HIS RESPONSIBILITY WIT H RESPECT TO 285BA THE SAID RETURN HAS BEEN FILLED WITHIN TIME SPECIFI ED IN THE NOTICE. AS PER ORDER DATED 30-3-2016 ASSESSEE WAS IMPOSED W ITH PENALTY U/S 271 FA (IN CASE OF FAILURE TO FURNISH ANNUAL INFORM ATION RETURN) OF RS.100/- PER DAY FOR 107 DAYS AND THEREAFTER CONTIN UOUS DEFAULT RS.500 FOR 59 DAYS TOTAL AMOUNTING TO RS.40,200/-. AS THE DELAY IS DUE TO REASONABLE CAUSE AND THE SAM E HAS BEEN CORRECTED BY FILLING THE RETURN WITHIN THE TIME SPE CIFIED IN THE 2 ND NOTICE HENCE THE SAID PENALTY OF RS.40,200 IS TO BE DELETE D. ITA NOS.1427, 1428 & 1429/AHD/2016 SUB REGISTRAR DHANSURA VS. DIT(I&CI) ASST.YEAR 2015-16 - 3 - 2.3 IN ITA NO.1429/AHD/2016 FOR AY 2015-16: PENALTY UNDER 271 FA CANNOT BE IMPOSED IF THERE IS REASONABLE CAUSE FOR DELAY IN FURNISHING THE ANNUAL INFORMATION RETU RN. AS PER THE FACTS THE DELAY IS DUE TO THE PERSON IN CHARGE WAS NEWLY RECRUITED AND NEITHER WAS AWARE OF THE INCOME TAX P ROVISION NOR THE DEPARTMENTAL AUTHORITY INFORMED HIM ABOUT HIS RESPO NSIBILITY OF DOING THE SAME. THIS WAS A GENUINE FACT FOR THE DELAY AND AS SOON AS THE ASSESSEE COMES TO KNOW ABOUT HIS RESPONSIBILITY WIT H RESPECT TO 285BA THE SAID RETURN HAS BEEN FILLED WITHIN TIME SPECIFI ED IN THE NOTICE. AS PER ORDER DATED 30-3-2016 ASSESSEE WAS IMPOSED W ITH PENALTY U/S 271 FA (IN CASE OF FAILURE TO FURNISH ANNUAL INFORM ATION RETURN) OF RS.100/- PER DAY AMOUNTING TO RS.8,700/-. AS THE DELAY IS DUE TO REASONABLE CAUSE AND THE SAM E HAS BEEN CORRECTED BY FILLING THE RETURN WITHIN THE TIME SPE CIFIED IN THE NOTICE HENCE THE SAID PENALTY OF RS.8,700 IS TO BE DELETED . 3. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERI ALS ON RECORD ARE AS UNDER:- IN THIS CASE, IT IS SEEN FROM RECORDS THAT THE ASS ESSEE HAS FILED AIR ON 05/12/2015. FURTHER IN RESPONSE TO THE SAID OFFI CE OF THE DIT(I&CI) SEEN A LETTER DATED 08/03/2016, THE ASSESSEE HAS FI LED LATTER STATING THAT HE IS HAVING THE CHARGE OF SUB-REGISTRAR, DHANSURA SIN CE 18/12/2014 AND HE IS NEWLY DIRECTLY RECORDED AND HENCE DID NOT HAD AN Y KNOWLEDGE. FURTHER, HE WAS NOT PROVIDED ANY INFORMATION FROM AIR FROM H IS OFFICE. HE HAS FILED THE RETURN AND HENCE RETURN WILL BE FOILED IN TIME IN FUTURE. BUT LD. DIRECTOR OF INCOME TAX (I&CI) WAS NOT AGREE WITH TH E PLEA OF THE APPELLANT AND IMPOSED THE PENALTY IN ASST. YEAR 201 5-16 IN ITA NO.1427/AHD/2016 OF RS.8,500/-, IN ITA NO.1428/AHD/ 2016 OF RS.40,200/- AND IN ITA NO.1429/AHD/2016 OF RS.8,700 /-. ITA NOS.1427, 1428 & 1429/AHD/2016 SUB REGISTRAR DHANSURA VS. DIT(I&CI) ASST.YEAR 2015-16 - 4 - 4. NOW ALL THREE APPEALS ARE BEFORE US. 5. APPELLANT IS A GOVT. SERVANT AND LD. AR STATED T HAT THEY HAVE ASSIGNED JOB TO SUBMIT AIR TO SOME OUTSOURCES AGENC Y AND SOMETIME STAFF OF THE OUTSOURCES AGENCY BECOME CARELESS. IN THESE CASE, APPELLANT IS A NEWLY INCUMBENT WITH THE OFFICE AND WAS NOT AWARE OF THE INCOME TAX PROVISIONS. MOREOVER, DEPARTMENT AUTHORITY DID NOT INFORM IN ABOVE SAID RESPONSIBILITIES OF DURING THE SAME. MOREOVER, INCO ME TAX WAS PAID ON TIME THEREFORE, NO LOSS TO THE REVENUE. 6. IN OUR CONSIDERED OPINION, APPELLANT WAS HAVING REASONABLE CAUSE FOR DELAY FILING ON AIR AND IN OUR OPINION BENEFIT OF SECTION 273B SHOULD BE GIVEN TO THE APPELLANT. THEREFORE, WE DELETE THE PENALTY IN ALL ABOVE SAID THREE APPEALS. 7. IN THE RESULT, ALL THREE APPEALS FILED BY THE AP PELLANTS ARE ALLOWED. THIS ORDER PRONOUNCED IN OPEN COURT ON 28/02/2018 SD/- SD/- ( ) 4 5 ( N.K. BILLAIYA ) ( MAHAVIR PRASAD ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 28/02/2018 PRITI YADAV, SR.PS ITA NOS.1427, 1428 & 1429/AHD/2016 SUB REGISTRAR DHANSURA VS. DIT(I&CI) ASST.YEAR 2015-16 - 5 - !'# $#! # COPY OF THE ORDER FORWARDED TO : 1. !$' / THE APPELLANT 2. ($' / THE RESPONDENT. 3. 67- + 8- / CONCERNED CIT 4. + 8- 4!5 / THE CIT(A)-AHMEDABAD. 5. 9:;-67 !.!672 ! / DR, ITAT, AHMEDABAD 6. ;<=, # GUARD FILE. % & / BY ORDER, (9-- //TRUE COPY// '/& () ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION 27/02/2018 (DICTATION-PAD 2 P AGES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 27/02/2018 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S. 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER