M/s. Jasarath Educational Society, Hyderabad V. ITO, Ward-9(2), Hyderabad

ITA 1536/HYD/2013

• Counselvise Citation: 153622514 RSA 2013
• Duration Of Justice: 11 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2002-2003
• Appeal Filed On: 20-11-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: B RAMA KRISHNA
• Assessee Lawyers: MOHD KHURSHEED ALI
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI P.M.JAGTAP, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO.1536/HYD/2013 : ASSESSMENT YEAR 2002 - 03 M/S. JASARATH EDUCATIONAL SOCIETY, HYDERABAD (PAN - AAAAJ 0948 F ) V/S. INCOME TAX OFFICER, WARD 9(2), HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MOHD. KHURSHEED ALI RESPONDENT BY : SHRI B.RAMAKRISHNA DR DATE OF HEARING 29 . 1 0.2014 DATE OF PRONOUNCEMENT 31 .10.2014 O R D E R PER P.M.JAGTAP, ACCOUNTANT MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX(APPEALS) - 18, MUMBAI, HOLDING CONCURRENT JURISDICTION OF CIT(A) VI,. HYDERABAD DATED 22.8.2013, WHEREBY HE CONFIRMED THE PENALTY OF RS.5,000 IMPOSED BY THE ASSESSING OFFICER UNDER S.271F OF THE ACT. 2. ASSESSEE IN THE PRESENT CASE IS A SOCIETY REGISTERED UNDER THE PROVISIONS OF ANDHRA PRADESH SOCIETIES ACT ON 22 ND MARCH, 1996 AND IT IS ENGAGED IN THE RUNNING OF A SCHOOL. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION VIZ. ASSESSMENT YEAR 2002 - 03 WAS FILED BY IT ON 15.12.2004, AS AGAINST THE DUE DATE OF 31.7.2002, AS PRESCRIBED IN SUB - SEC TION (1) OF S.139 OF THE ACT. THE ASSESSING OFFICER THEREFORE, INITIATED PENALTY PROCEEDINGS UNDER I TA NO. 1536/H YD/20 13 . M/S. J ASARATH EDUCATIONAL SOCIETY, HYDERABAD 2 S.271F AND IN RESPONSE TO THE SHOW CAUSE NOTICE ISSUED DURING THE COURSE OF THE SAID PROCEEDINGS, THE ASSESSEE MERELY STATED THAT IT WAS RUNNING A MINORITY INSTITUTE STARTED IN THE YEAR 1991 WITH MEAGER STRENGTH OF STUDENTS AND THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED VOLUNTARILY. THIS EXPLANATION OF THE ASSESSEE WAS NOT FOUND ACCEPTABLE BY THE ASSESSING OFFICER, AND HE IMPOSED A PENAL TY OF RS.5,000 UNDER S.271F FOR THE FAILURE OF THE ASSESSEE TO FILE THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION BEFORE THE END OF THE RELEVANT ASSESSMENT YEAR . 3. TH E PENALTY IMPOSED BY THE ASSESSING OFFICER UNDER S.271F WAS CHALLENGED BY THE ASSESSEE IN AN APPEAL FILED BEFORE THE LEARNED CIT(A) AND THE FOLLOWING SUBMISSION WAS MADE ON BEHALF OF THE ASSESSEE BEFORE THE LEARNED CIT(A) - THE APPELLANT HAS FILED I.T. RETURN FOR THE A.Y. 2002 - 03 ON 15.12.2004 AND DECLARED A BOOK PROFIT OF RS.7,5 00/. THE ITO HAS COMPLETED THE ASSESSMENT U/S. S.143(3) R/W SEC.147 OF THE I.T. ACT. DURING THE COURSE OF SCRUTINY THE ITO HAS RECORDED THE OATH STATEMENT OF THE SECRETARY OF JASARATH EDUCATIONAL SOCIETY ON 11.12.2006. HE HAS ADMITTED THAT HE HAS NOT MA INTAINED THE PROPER BOOKS OF ACCOUNT BUT MAINTAINED THE INCOME AND EXPENDITURE RECORD BEFORE THE CONCERNED ITO IN SUPPORT OF HIS RETURN. THE ITO HAS ISSUED THE NOTICE U/S. 217F OF I.T.ACT, 1961 IN RESPECT OF LATE FILING OF I.T. RETURN FOR THE A.Y. 2002 - 30 AND HE HAS IMPOSED THE PENALTY OF RS.5,000/ - , HENCE THIS APPEAL IS FILED AGAINST THIS IMPUGNED ORDER WHICH IS CONTRARY TO LAW AND JUSTICE. 4. THE LEARNED CIT(A) DID NOT FIND MERIT IN THE SUBMISSION OF THE ASSESSEE AND CONFIRMED THE PENALTY IMPOSED BY THE ASSESSING OFFICER UNDER S.271F FOR THE FOLLOWING REASONS GIVEN IN PARAGRAPH 1.3 OF HIS IMPUGNED ORDER - I TA NO. 1536/H YD/20 13 . M/S. J ASARATH EDUCATIONAL SOCIETY, HYDERABAD 3 1.3 I HAVE CONSIDERED THE SUBMISSIONS OF THE APPELLANT, ORDER OF THE A.O. AND FACTS OF THE CASE CAREFULLY. IT IS NOTICED THAT THE ASSESSEE WAS LI ABLE TO FILE RETURN U/S. 139(1) ON OR BEFORE 31.07.2002. HOWEVER, IN THE PRESENT CASE, THE ASSESSEE HAS FILED ITS RETURN ON 15.12.2004 WHICH IS LATE BY MORE THAN 2 - 1/2 YEARS. THE A.O. HAS GIVEN SHOW CAUSE NOTICE TO THE ASSESSEE TO EXPLAIN WHY PENALTY U/S . 271F MAY NOT BE LEVIED. IN RESPONSE TO THE SHOW CAUSE NOTICE, NO REASONABLE CAUSE WAS GIVEN BEFORE THE A.O., THUS HE LEVIED PENALTY U/S. 271F. BEFORE ME, THE APPELLANT HAS TAKEN THE SAME ARGUMENT AS BEFORE THE A.O. KEEPING IN VIEW THE FACTS & CIRCUMSTA NCES THAT THE ASSESSEE HAS FILED RETURN LATE BY MORE THAN 2 - 1/2 YEARS WITHOUT ANY REASONABLE CAUSE, THEREFORE, IT IS FIT CASE FOR LEVYING PENALTY U/S. 271F, THUS THE PENALTY LEVIED BY THE A.O. IS UPHELD AND GROUND OF APPEAL IS DISMISSED. A GGRIEVED BY T HE ORDER OF THE DISALLOWED CIT(A), ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 5 . WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. AS PER THE PROVISIONS OF S.271F, IF A PERSON WHO IS REQUIRED TO FURNISH A RETURN OF HIS INCOME, AS REQUIRED UNDER SUB - SECTION (1) OF S.139 OR BY THE PROVISO TO THAT SUB - SECTION, FAILS TO FURNISH SUCH RETURN BEFORE THE END OF THE RELEVANT ASSESSMENT YEAR, HE IS LIABLE TO PAY, BY WAY OF PENALTY, A SUM OF FIVE THOUSAND RU PEES. AS PER THE PROVISIONS OF S.273B, NOTWITHSTANDING ANYTHING CONTAINED IN THE PROVISIONS OF S.271F, NO PENALTY IS IMPOSABLE ON THE PERSON OR THE ASSESSEE AS THE CASE MAY BE, FOR ANY FAILURE REFERRED TO IN THE PROVISIONS OF S.271F, IF HE PROVES THAT THE RE WAS A REASONABLE CAUSE FOR SUCH FAILURE. IN THE PRESENT CASE, IT IS OBSERVED THAT NO SUCH REASONABLE CAUSE WAS ADVANCED , MUCH LESS PROVED, BY THE ASSESSEE FOR ITS FAILURE TO FILE THE RETURN BEFORE THE END OF THE ASSESSMENT YEAR UNDER CONSIDERATION EITHER BEFORE THE ASSESSING OFFICER OR BEFORE THE LEARNED CIT(A). EVEN AT THE TIME OF HEARING BEFORE US, THE I TA NO. 1536/H YD/20 13 . M/S. J ASARATH EDUCATIONAL SOCIETY, HYDERABAD 4 LEARNED COUNSEL FOR THE ASSESSEE HAS NOT BEEN ABLE TO OFFER ANY EXPLANATION TO SHOW OR PROVE THAT THERE WAS A REASONABLE CAUSE FOR THE FAILURE OF THE ASSESSEE TO FILE THE RETURN BEFORE THE END OF THE ASSESSMENT YEAR UNDER CONSIDERATION. WE THEREFORE, FIND NO JUSTIFIABLE REASON TO INTERFERE WITH THE ORDER OF THE LEARNED CIT(A), CONFIRMING THE PENALTY IMPOSED BY THE ASSESSING OFFICER UNDER S.271F, AND UPHOLDING THE SAME, WE DISMISS THIS APPEAL FILED BY THE ASSESSEE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 31 ST OCT O B E R, 2014 SD/ - SD/ - ( SAKTIJIT DEY ) ( P.M.JAGTAP ) JUDICIAL MEMBER ACCOUNTANT MEMBER D T/ - 31 ST OCTOBER, 2014 COPY FORWARDED TO: 1. M/S. JASARATH EDUCATIONAL SOCIETY, H.NO.20 - 4 - 209/8, HIMMATPURA, NEW SHAH ALI BANDA ROAD, HYDERABAD HYDERABAD 2 . INCOME TAX OFFICER WARD 9(2), HYDERABAD 3. 4. COMMISSIONER OF INCOME - TAX(APPEALS) 18 MUMBAI COMMISSIONER OF INCOME - TAX(APPEALS) VI, HYDERABAD COMMISSIONER OF INCOME - TAX V, HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S