Shri Ashokbhai P. Patel, Nani Daman V. The Income Tax Officer, Vapi Ward -4, Nani Daman

ITA 1476/AHD/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9945 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 16-11-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 17-05-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PRAVIN KUMAR
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER ./ ITA NO. 1476/AHD/2013 / ASSESSMENT YEAR : 2006-07 ASHOKBHAI P. PATEL, GHELWAD FALIA, NANI DAMAN-396210 PAN : AHTPP 3940 J VS INCOME TAX OFFICER, VAPI WARD-4, DAMAN / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI MEHUL SHAH, AR REVENUE BY : SHRI PRAVIN KUMAR, SR. DR / DATE OF HEARING : 16/11/2016 / DATE OF PRONOUNCEMENT: 17/11/2016 / O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS), VALSA D DATED 30.12.2012 FOR ASSESSMENT YEAR 2006-07. 2. THE SOLE GROUND RAISED BY THE ASSESSEE READS AS UNDER: ON THE FACTS AND CIRCUMSTANCES OF THE CASE AS WELL AS LAW ON THE SUBJECT, THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) HAS ER RED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN LEVYING PENALTY OF RS.70,000/- U/S 271(1)(B) OF THE I.T. ACT, 1961. 3. LD. COUNSEL FOR THE ASSESSEE CONTENDS THAT THE P ENALTY HAS BEEN IMPOSED U/S 271(1)(B) OF THE ACT FOR SEVEN TIMES @ RS.10,000/- EACH FOR DEFAULT, FOR NON-COMPLIANCE. RELIANCE IS PLACED ON THE DECISION OF ITAT IN THE CASE OF VASHRAMBHAI M. MORDIYA VS. ACIT IN ITA NO.2332/AHD/2013, FOLLOWING THE DECISION OF CO-ORDINATE BENCH, DELHI IN THE CASE OF SMT. REKHA RANI IN ITA NO.6131/DEL/2013 DATED 06.05.2015, WHE REIN IT HAS BEEN HELD THAT THE PENALTY U/S 271(1)(B) SHOULD BE RESTRICTED TO RS.10,000/-, BY FOLLOWING OBSERVATIONS:- 4. I HAVE HEARD LD. SR. DR, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. I N THE CASE UNDER APPEAL, IT SMC-ITA NO. 1476/AHD/2013 ASHOKBHAI P. PATEL VS. ITO AY : 2006-07 2 IS PERTINENT TO NOTE THE OBSERVATIONS OF THE CO-ORD INATE BENCH, DELHI IN THE CASE OF SMT. REKHA RANI IN ITA NO. 6131/DEL/2013 DA TED 06.05.2015, WHICH READ AS UNDER:- 'THE PENALTY UNDER SECTION 271(1)(B) COULD NOT BE I MPOSED FOR EACH AND EVERY NOTICE ISSUED UNDER SECTION 143(2), WHICH REMAINED NOT COMPLIED WITH ON THE PART OF THE ASSESSEE. THE PROV ISION OF SECTION 271(1)(B) IS OF DETERRENT NATURE AND NOT FOR EARNIN G REVENUE. ANY OTHER VIEW TAKEN SHALL LEAD TO THE IMPOSITION OF PE NALTY FOR ANY NUMBER OF TIMES (WITHOUT LIMITS) FOR THE SAME DEFAU LT OF NOT APPEARING IN RESPONSE TO THE NOTICE UNDER SECTION 143(2). THI S DOES NOT SEEM TO BE THE INTENTION OF THE LEGISLATURE IN ENACTING THE PROVISIONS OF SECTION 271(1)(B). IN CASE OF FAILURE OF THE ASSESSEE TO CO MPLY WITH THE NOTICE UNDER SECTION 143(2) THE REMEDY WITH THE ASSESSING OFFICER LIES WITH FRAMING OF 'BEST JUDGMENT ASSESSMENT' UNDER THE PRO VISIONS OF SECTION 144 AND NOT TO IMPOSE PENALTY UNDER SECTION 271(1)( B) AGAIN AND AGAIN. IN THIS VIEW OF THE MATTER, THE PENALTY . A. Y. 2006-07 LEVIED UNDER SECTION 271(1)(B) IS TO BE RESTRICTED TO THE FIRST DEFAULT OF THE ASSESSEE IN NOT COMPLYING WITH THE NOTICE ISSUED UN DER SECTION 143(2).' 5. THE FACTS OF THE CASE IN HAND ARE IDENTICAL, TH EREFORE, RESPECTFULLY FOLLOWING THE FINDINGS OF THE CO-ORDINATE BENCH (SU PRA), I DIRECT THE ASSESSING OFFICER TO RESTRICT THE PENALTY SO LEVIED AT RS. 10,000/-. THUS, THE ASSESSEE GETS A RELIEF OF RS. 10,000/-. 4. THE LD. DEPARTMENTAL REPRESENTATIVE IS HEARD. 5. I HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITI ES BELOW. FOLLOWING THE ITAT AHMEDABAD BENCH DECISION IN THE CASE OF VISHRA MBHAI M. MORDIYA AND DELHI BENCH DECISION IN THE CASE OF SMT. REKHA RANI (SUPRA), THE PENALTY IN QUESTION LEVIED U/S 271(1)(B) OF THE ACT IS REST RICTED TO RS.10,000/-. 6. IN THE RESULT, ASSESSEES APPEAL IS PARTLY ALLOW ED. ORDER PRONOUNCED IN THE COURT ON 17 TH NOVEMBER, 2016 AT AHMEDABAD. SD/- R.P. TOLANI (JUDICIAL MEMBER) AHMEDABAD; DATED 17/11/2016 *BIJU T., SR. PS SMC-ITA NO. 1476/AHD/2013 ASHOKBHAI P. PATEL VS. ITO AY : 2006-07 3 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD