Arjun Dada Kharate, Nashik V. Deputy Commissioner of Income-tax, Circle - 1, Nashik

ITA 1594/PUN/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9154 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 23-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 273B; 139(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE VIRTUAL COURT BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER ITA NO.1594/PUN/2017 / ASSESSMENT YEAR : 2011-12 ARJUN DADA KHARATE, POOJA ROW HOUSE NO.B-2, VIDYA NAGAR, MAKHMALABAD, NASHIK 422 003 PAN : BCMPK8087Q VS. DCIT, CIRCLE-1, NASHIK APPELLANT RESPONDENT ITA NO.1599/PUN/2017 / ASSESSMENT YEAR : 2011-12 BHIMA DADA KHARATE, POOJA ROW HOUSE NO.B-2, VIDYA NAGAR, MAKHMALABAD, NASHIK 422 003 PAN : BCMPK7951D DCIT, CIRCLE-1, NASHIK APPELLANT RESPONDENT / ORDER PER BENCH : THESE TWO APPEALS BY THE DIFFERENT BUT RELATED ASSESSEES A RISE OUT OF THE ORDERS DATED 29-05-2017 PASSED BY THE LD. CI T(A)-1, NASHIK CONFIRMING PENALTY IMPOSED U/S.271F OF THE INCOME-TA X ASSESSEE BY NONE REVENUE BY SHRI PRATHAMESH J. LAWAND DATE OF HEARING 10-08-2020 DATE OF PRONOUNCEMENT 10-08-2020 ITA NOS.1594 & 1599/PUN/2017 ARJUN D. KHARATE & BHIMA D. KHARATE 2 ACT, 1961 (HEREINAFTER ALSO CALLED THE ACT) IN RELATION TO THE ASSESSMENT YEAR 2011-12. SINCE A COMMON ISSUE IS RAISED IN THESE APPEALS, WE ARE, THEREFORE, PROCEEDINGS TO DISPOSE THEM OFF BY THIS CONSOLIDATED ORDER. ARJUN DADA KHARATE : 2. SUCCINCTLY, THE FACTS IN THE CASE OF ARJUN DADA KHARATE AR E THAT HE, ALONG WITH OTHER RELATED PERSONS, SOLD CERTAIN LAND/IMMOVABLE PROPERTY AT GAT NO.150 & 151, MAKHMALABAD, NASHIK TO SUYOJIT GROUP OF NASHIK WITH HIS SHARE IN THE TRANSACTIO N AT RS.96,66,666/-. THE ASSESSEE FILED HIS RETURN ON 19- 12-2013 DECLARING TOTAL INCOME AT RS.43,93,199/-. SINCE THE RETURN WA S BEYOND THE TIME STIPULATED U/S 139(1) OF THE ACT, ASSESSEE WAS SERVED WITH A NOTICE U/S.148. ASSESSMENT ORDER WAS PASSE D U/S.143(3) R.W.S.147 ASSESSING TOTAL INCOME AT RS.42,24,1 16/-. THE ASSESSING OFFICER (AO) IMPOSED PENALTY OF RS.5,000/- U /S.271F OF THE ACT ON THE GROUND THAT THE ASSESSEE FAILED TO FILE HIS RETU RN OF INCOME WITHIN THE TIME PRESCRIBED U/S.139(1) OF THE ACT. THE ASSESSEE MADE CERTAIN WRITTEN SUBMISSIONS BEFORE THE LD. CI T(A) ITA NOS.1594 & 1599/PUN/2017 ARJUN D. KHARATE & BHIMA D. KHARATE 3 SEEKING DELETION OF PENALTY, WHICH DID NOT FIND FAVOUR WITH THE LD. FIRST APPELLATE AUTHORITY, WHO AFFIRMED THE PENALTY. 3. WE HAVE HEARD THE LD. DR THROUGH VIRTUAL COURT AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD. IT IS SEEN FROM TH E IMPUGNED ORDER THAT THE ASSESSEE STATED REASONS BEFORE THE LD. CIT(A) FOR NOT FURNISHING THE RETURN U/S.139(1) OF THE ACT. SUCH REASONS HAVE BEEN REPRODUCED IN PARA 5 OF THE IMPUGN ED ORDER. THE REASONS REFERRED TO THE ASSESSEE BEING AN AGRICULTURIS T AND ILLITERATE; FACING FINANCIAL AND FAMILY PROBLEMS; UNDER THE IMPRESSION THAT GAIN ARISING FROM SALE OF ANY AGRICULTURAL LAN D NOT CHARGEABLE TO TAX. WHEN WE CONSIDER THE ENTIRETY OF THE FAC TS AND CIRCUMSTANCES OBTAINING IN THIS CASE, IT BECOMES APPARENT THAT THERE WAS REASONABLE CAUSE ON THE PART OF THE ASSESSEE IN NOT FILING RETURN U/S.139(1) OF THE ACT, AGAINST WHICH THE PENALTY HAS BEEN I MPOSED AND CONFIRMED U/S.271F OF THE ACT. SECTION 273B PROVIDES THA T NO PENALTY SHALL BE IMPOSED, INTER ALIA, U/S.271F WHERE THE ASSESSEE ESTABLISHES A REASONABLE CAUSE FOR FAILURE REFERRED TO IN SAID SECTION. IN THE GIVEN FACTS, WE FIND THAT THERE WAS A REASONABLE CAU SE WITH THE ASSESSEE IN THE TERMS GIVEN IN PARA 5 OF THE IMPUGNED ORDER. ITA NOS.1594 & 1599/PUN/2017 ARJUN D. KHARATE & BHIMA D. KHARATE 4 THIS BEING THE POSITION, THE CASE GETS COVERED U/S 273B OF TH E ACT. AS SUCH, WE ORDER TO DELETE THE PENALTY. BHIMA DADA KHARATE : 4. THE FACTS IN THE CASE OF BHIMA DADA KHARATE ARE MUTATIS MUTANDIS SIMILAR TO THOSE DISCUSSED SUPRA IN THE CASE OF SH. ARJUN DADA KHARATE. FOLLOWING THE VIEW TAKEN HEREINABOVE, WE ORDE R TO DELETE THE PENALTY. 5. IN THE RESULT, BOTH THE APPEALS ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH AUGUST, 2020. SD/- SD/- (S.S. VISWANETHRA RAVI) (R.S.SY AL) JUDICIAL MEMBER VIC E PRESIDENT PUNE; DATED : 10 TH AUGUST, 2020 SATISH ITA NOS.1594 & 1599/PUN/2017 ARJUN D. KHARATE & BHIMA D. KHARATE 5 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. THE CIT(A)-1, NASHIK 4. 5. THE PR.CIT-1, NASHIK , , / DR A, ITAT, PUNE 6. / GUARD FILE / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE DATE 1. DRAFT DICTATED ON 10-08-2020 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 10-08-2020 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *