Aruna Sahakari Bank Niyamitha, Bangalore V. The Director Of Income Tax (Intelligence & Criminal Investigation), Bangalore

ITA 1646/BANG/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1848 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 03-12-2019
• Assessment Year: 2006-2007
• Appeal Filed On: 16-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 250; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES A BENCH: BANGALORE BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO S . 1646 TO1656 /BANG/201 9 (ASSESSMENT YEAR S : 2006 - 07 TO 2016 - 17 ) M/S. A R UNA SAHAKARI BANK NIYAMITHA, NO.689, YELAHANKA NEW TOWN, YELAHANKA, BANGALORE - 560 064 .APPELLANT PAN AAAAA8267C VS. DIRECTOR OF INCOME TAX, (INTELLIGENCE AND CRIMINAL INVESTIGATIONS) BANGALORE. RESPONDENT. ASSESSEE BY: SHRI SANDEEP C, C.A. REVENUE BY: SHRI SUNIL KUMAR AGARWAL, ADDL. CIT(D.R) DATE OF HEARING : 03.12.2019 DATE OF PRONOUNCEMENT : 06 .12 .2019 O R D E R PER BENCH : THESE ARE THE APPEALS FILED BY THE ASSESSEE FOR THE ASSESSMENT YEARS 2006 - 07 TO 2016 - 17 AGAINST THE COMMON ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 13, BANGALORE PASSED UNDER SECTION 271FA 2 ITA NOS.1646 TO 1656/BANG/2019 AND 250 OF THE INCOME TAX ACT, 1961 ('THE ACT'). SINCE ALL THESE APPEALS HAVE IDENTICAL AND COMMON ISSUES, THEY A RE CLUBBED AND HEARD TOGETHER AND COMMON CONSOLIDATED ORDER IS PASSED. FOR THE SAKE OF CONVENIENCE WE SHALL TAKE UP THE ASSESSEE'S APPEAL IN ITA NO.1646/BANG/2019 FOR A.Y. 200 6 - 07 AND THE FACTS NARRATED THEREIN. 2. AT THE TIME OF HEARING, THE LEARNED AUTHORISED REPRESENTATIVE FILED ADDITIONAL GROUNDS OF APPEAL AND UPON HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE, THEY ARE ADMITTED. THE ASSESSEE HAS RAISED THE GROU NDS OF APPEAL AND ADDITIONAL GROUNDS OF APPEAL WHICH ARE READ AS UNDER : 3 ITA NOS.1646 TO 1656/BANG/2019 3. THE BRIEF FACTS OF THE CASE ARE THAT UNDER THE PROVISIONS OF SECTION 285BA OF THE ACT R.W. RULE 114E OF I.T. RULES, 1962 FOR THE ASSESSMENT 4 ITA NOS.1646 TO 1656/BANG/2019 YEAR 2006 - 07 RELATED TO F.Y. 2005 - 06, THE ASSESSEE HAS TO FILE ANNUAL INFORMATION RE T U R N (AIR) ON OR BEFORE 31.08.2006 IN RESPECT OF TRANSACTION SPECIFIED IN SUB - RULE 2 OF RULE 114E OF I.T. RULES. SINCE THERE WAS NO COMPLIANCE BY THE ASSESSEE IN SUBMITTING THE INFORMATION UNDER PROVIS IONS OF SECTION 285BA OF THE ACT. HENCE NOTICE WAS ISSUED UNDER SECTION 285BA(5) OF THE ACT ON 27.2.2015 TO FILE ANNUAL INFORMATION RE T U R N WITHIN 15 DAYS BUT THERE IS NO COMPLIANCE BY THE ASSESSEE. S UBSEQUENTLY SHOW CAUSE NOTICE WAS ISSUED AND SWORN S TATEMENT WAS RECORDED BY THE REVENUE AUTHORITIES. WHEREAS THE ASSESSING OFFICER FOUND THAT REASON S EXPLAINED BY THE ASSESSEE FOR NOT FILING THE ANNUAL RETURN FOR F.Y. 2005 - 06 AND SUBSEQUENT ASSESSMENT YEARS ARE NOT SATISFACTORY IN RESPECT OF SUBSTANTIVE R EPORTABLE TRANSACTIONS. HENCE THERE IS CLEAR VIOLATION OF PROVISIONS OF SECTION 271FA OF THE ACT AND LEVIED PENALTY VIDE THE ORDER PASSED UNDER SECTION 271FA OF THE ACT DT.25.4.2017. AGGRIEVED BY THE ORDER, THE ASSESSEE HAS FILED AN APPEAL WITH THE CIT(A PPEALS) WHEREAS THE CIT(APPEALS) CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, GROUNDS OF APPEAL AND FINDINGS OF THE ASSESSING OFFICER HAS CONFIRMED THE PENALTY AND DISMISSED THE ASSESSEE'S APPEAL. AGGRIEVED BY THE CIT(APPEALS) ORDER, THE ASSESSEE HAS FILE D AN APPEAL WITH THE TRIBUNAL. 5 ITA NOS.1646 TO 1656/BANG/2019 4. AT THE TIME OF HEARING, THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THE ASSESSEE HAS FILED ADDITIONAL GROUNDS OF APPEAL ON THE TECHNICALITIES AND LEG A L I S S U E ON APPLICABILITY OF LAW WHICH IS EFFECTIVE FROM 1.4.2015 AND FURTHER THE AUTHORITIES ERRED IN LEVYING THE PENALTY UNDER SECTION 271FA OF THE ACT RELYING ON UNAMENDED PROVISIONS OF SECTION 285BA(1) WHICH DOES NOT EXIST ON THE DATE OF PASSING THE ORDER. THE L EARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THE ASSESSEE HAS FILED A D D I T I O N A L GROUND S OF APPEAL FILED BEFORE THE CIT(APPEALS) ON 8.5.2019 AND WHEREAS THE CIT(APPEALS) HAS ALREADY PASSED THE ORDER ON 6.5.2019 WHICH WAS NOT WITHIN THE KNOWLEDGE OF THE ASSESSEE AND H ENCE PRAYED THAT THE ADDITIONAL GROUNDS OF APPEAL ARE HEARD AND ALLOW THE APPEAL. CONTRA, THE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDERS OF CIT(APPEALS). 5. WE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. PRIMA FA CIE, THE LEARNED AUTHORISED REPRESENTATIVE HAS RESTRICTED HIS ARGUMENTS TO THE EXTENT OF ADDITIONAL GROUNDS ONLY WHICH A RE ADMITTED. THE CONTENTION OF THE LEARNED AUTHORISED REPRESENTATIVE THAT THE ASSESSEE FILED ADDITIONAL GROUNDS OF APPEAL BEFORE CIT (A PPEALS) AND SUBSTANTIATED WITH THE ACKNOWLEDGEMENT OF FILING IN THE OFFICE OF CIT 6 ITA NOS.1646 TO 1656/BANG/2019 (APPEALS) ON 8.5.2019 BUT CIT (APPEALS) HAS PASSED THE ORDER ON 6.5.201 9 WHICH CANNOT BE DISPUTED. HENCE AGAIN THE ASSESSEE HAS RAISED ADDITIONAL GROUND S OF APPEAL BEFORE THE TRIBUNAL. WE FOUND THAT THIS ADDITIONAL GROUND HAS TO BE HEARD BY THE CIT(APPEALS) ON THE LEGAL AND TECHNICAL ASPECTS. ACCORDINGLY TO MEET THE ENDS OF JUSTICE, WE RESTORE THE THESE ADDITIONAL GROUND S OF APPEAL TO THE FILE OF CIT(APPEALS) TO ADJUDICATE ON TECHNICAL AND LEGAL ASPECTS AND IF THE ASSESSEE F AILS ON ADDITIONAL GROUND S OF APPEAL BEFORE THE APPELLATE AUTHORITY, T HE CIT(APPEALS) IS DIRECTED TO ADJUDICATE AFRESH ALL THE DISPUTED ISSUES ON MERITS AND PASS A REASONABLE AND SPEAKING ORDER. FURTHER TH E ASSESSEE SHOULD BE PROVIDED ADEQUATE OPPORTUNITY OF HEARING AND SHALL CO - OPERATE IN SUBMITTING THE INFORMATION /DETAILS FOR EARLY DISPOSAL OF APPEAL AND ALLOW THE GROUNDS OF APPEAL OF THE ASSESSEE FOR STATISTICAL PURPOSES. 6. SIMILARLY THE ASSESSEE FILED APPEALS IN ITA NOS.1647 TO 1656/BANG/2019 FOR THE ASST. YEARS 2007 - 08 TO 2016 - 17 AND THE DECISION AS DECIDED IN ITA NO.1646/BANG/2019 FOR THE A.Y. 2006 - 07 IS APPLICABLE TO THESE APPEAL S ALSO. HENCE THESE APPEALS ARE ALSO RESTORED ALONG WITH ADDITIONAL GROUND OF APPEAL TO THE FILE OF CIT(APPEALS) TO 7 ITA NOS.1646 TO 1656/BANG/2019 ADJUDICATE AFRESH AS DIRECTED IN PARA 5 AND ALLOW THE GROUNDS OF APPEAL OF THE ASSESSEE FOR STATISTICAL PURPOSES. 7. IN THE RESULT, THE A SSESSEE'S APPEALS IN ITA NOS.1646/BANG/2019 TO 1656/BANG/2019 ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 6 T H DEC., 2019. S D / - S D / - (A.K. GARODIA) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 0 6 .12. 2019. *REDDY GP COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT (A) 4. PR. CIT 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE