ACIT, C-5(1), Chandigarh V. M/s Venus Remedies Ltd., Panchkula

ITA 1530/CHANDI/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1494 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 06-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Assessee Lawyers: S C GUPTA ITP

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B, CHANDIGARH , ! '# $ % & '# , () BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO. 1530/CHD/2018 / ASSESSMENT YEAR : 2012-13 THE ACIT, CIRCLE 5(1), CHANDIGARH M/S VENUS REMEDIES LTD., SCO 857,CABIN NO.10,IST FLOOR, NAC, MANIMAJRA, CHANDIGARH ./PAN NO: AAACV6524H / APPELLANT / RESPONDENT ! /ASSESSEE BY : SHRI S.C. GUPTA, ITP \& SHRI JASPAL SHARMA, ADVOCATE ' ! / REVENUE BY : SHRI MANJIT SINGH, CIT DR # $ % /DATE OF HEARING : 26.11.2019 &'() % / DATE OF PRONOUNCEMENT : 26.11.2019 (* / ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVEN UE AGAINST THE ORDER DATED 28.09.2018 OF THE COMMISSIONER OF INCOM E TAX-2, CHANDIGARH [HEREINAFTER REFERRED TO AS CIT(A)] AGITATING THE ACTION OF THE LD. CIT(A) IN DELETING THE PENALTY U/S 221(1 ) OF THE INCOME TAX ACT, 1961 (IN SHORT 'THE ACT') LEVIED BY THE ASSESS ING OFFICER. ITA NO. 1530/CHD/2018- M/S VENUS REMEDIES LIMITED, MANIMAJRA 2 2. THE ASSESSING OFFICER LEVIED THE IMPUGNED PENALT Y FOR NON- PAYMENT OF SELF-ASSESSMENT TAX ALONG WITH INTEREST. HOWEVER, THE ASSESSEE SUBMITTED BEFORE THE LD. CIT(A) THAT THE A SSESSEE WAS IN HEAVY FINANCIAL CRUNCH. HE DEMONSTRATED BEFORE THE LD. C IT(A) THAT ITS FUNDS WERE UTILIZED IN PAYMENT OF LOANS AND TAXES. THOUG H, THE ASSESSING OFFICER IN THE IMPUGNED ORDER HAD OBSERVED THAT THE ASSESSEE EARNED SUFFICIENT PROFITS IN THE SUBSEQUENT YEARS, HOWEVER , THE ASSESSEE DEMONSTRATED BEFORE THE LD. CIT(A) THAT ALL THE PRO FITS EARNED BY THE ASSESSEE WERE GOT UTILIZED IN PAYMENT OF OUTSTANDIN G LIABILITIES. THE ASSESSEE DESPITE OF FINANCIAL DIFFICULTIES WAS ABLE TO RUN THE BUSINESS. 3. CONSIDERING THE SUBMISSIONS OF THE ASSESSEE WHIC H WERE CORROBORATED WITH THE ACCOUNTS OF THE ASSESSEE, THE LD. CIT(A) INVOKING THE SECOND PROVISO TO SECTION 221(1) OF THE ACT DE LETED THE IMPUGNED PENALTY OBSERVING THAT THE DEFAULT ON THE PART OF THE ASSESSEE WAS ON ACCOUNT OF GOOD AND SUFFICIENT REASONS. 4. BEING AGGRIEVED BY THE ABOVE ORDER OF THE CIT(A) , THE REVENUE HAS COME IN APPEAL BEFORE US. 5. WE, AFTER CONSIDERING THE RIVAL CONTENTIONS OF THE LD. AUTHORIZED REPRESENTATIVES OF BOTH THE PARTIES AND HAVING GON E THROUGH THE MATERIAL AVAILABLE ON RECORD, FIND THAT THE LD. CI T(A) HAS DISCUSSED AND ITA NO. 1530/CHD/2018- M/S VENUS REMEDIES LIMITED, MANIMAJRA 3 DELIBERATED UPON THE ISSUE, AND WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A), THE SAME IS THEREFORE, UPHELD. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DIS MISSED. ORDER DICTATED AND PRONOUNCED IN THE OPEN COURT IMM EDIATELY ON COMPLETION OF HEARING. SD/- SD/- ( $ % & '# / ANNAPURNA GUPTA) () / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 26.11.2019 .. '+ ,- .- / 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 '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR