M/s. Baba Khushi Nath Food Product Pvt. Ltd., Shahjahanpur V. Asstt. Commissioner of Income Tax, Sitapur

ITA 181/LKW/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 6549 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 16-06-2014
• Assessment Year: 2003-2004
• Appeal Filed On: 26-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K RAM
• Keywords: Reasonable cause; Revised return

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI. A. K. GARODIA , ACCOUNTANT MEMBER ITA NO. 181/LKW/2013 ASSESSMENT YEAR: 2003 - 04 M/S BABA KHUSHI NATH FOOD PRODUCTS PVT. LTD. B ILGRAM ROAD, HARDOI V. ASSTT. CIT SITAPUR PAN: AACCB2880L (APP ELL ANT) (RESPONDENT) APP ELL ANT BY: SHRI. ABHINAV MEHROTRA, ADVOCATE RESPONDENT BY: SHRI. R. K. RAM, D.R. DATE OF HEARING: 16 0 6 2014 DATE OF PRONOUNCEMENT: 25 0 6 2014 O R D E R PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) ON A SOLITARY GROUND THAT THE LD. CIT(A) HAS ERRED IN CONFIRMING THE PENALTY LEVIED UNDER SECTION 272B OF THE INCOME - TAX ACT, 1961 (HEREINAFTER CALLED IN SHO RT THE ACT'). 2 . DURING THE COURSE OF HEARING OF THE APPEAL, THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE FACT THAT THE RETURNS OF INCOME FOR ASSESSMENT YEARS 2001 - 02 AND 2002 - 03 WERE FILED AT THE OFFICE OF INCOME TAX OFFICER, HARDOI. T HE RETURNED INCOME WAS NIL, AS THE COMPANY WAS UNDER INSTALLATION OF FLOUR MILL. AT THE RELEVANT POINT OF TIME , ASSESSEE HAD APPLIED FOR PAN, BUT IT WAS NOT ALLOTTED TO THE ASSESSEE BY THE DEPARTMENT. THEREFORE, PERMANENT ACCOUNT NUMBER WAS NOT MENTION ED IN THE RETURN PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 2 - : FILED BY THE ASSESSEE. AS PER CHANGED RULES, THE ASSESSEE HAS APPLIED AGAIN THROUGH UTI FOR ALLOTMENT OF PAN AT THE TIME OF FILING OF RETURN FOR ASSESSMENT YEAR 2003 - 04 AND THEREAFTER PAN WAS ALLOTTED. BUT THE ASSESSING OFFICER HAS LEVIE D PENALTY ON THE GROUND THAT THE ASSESSEE HAS NOT APPLIED FOR PAN BEFORE 31.5.2003, AS THE APPLICATION FOR ALLOTMENT OF PAN WAS FILED ON 28.11.2003. 3 . AGGRIEVED, ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A) AGAINST THE PENALTY, BUT DID NOT FIND FAVOUR WITH HIM. 4 . NOW THE ASSESSEE IS BEFORE US AND HE HAS ALSO PLACED RELIANCE UPON THE JUDGMENT OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. GAIL (INDIA) LTD., [2013] 36 TAXMANN.COM 336 (ALL) WHEREIN THE HON'BLE HIGH COURT HAS HELD THAT PENALT Y UNDER SECTION 272B OF THE ACT COULD NOT BE IMPOSED WHEREVER ASSESSEE HAS REASONABLE CAUSE FOR NON - COMPLIANCE. 5 . THE LD. D.R., ON THE OTHER HAND, HAS PLACED RELIANCE UPON THE ORDER OF THE LD. CIT(A). 6 . HAVING CAREFULLY EXAMINED THE ORDERS OF THE LOWER AUTHORI TIES, WE FIND THAT THE ASSESSEE COULD NOT MENTION PERMANENT ACCOUNT NUMBER I N THE RETURN OF INCOME FILED BY IT ON ACCOUNT OF NON - ALLOTMENT OF THE SAME AT THE RELEVANT POINT OF TIME. AS AND WHEN IT WAS ALLOTTED, ASSESSEE HAS FILED THE REVISED RETURN OF INC OME BEFORE THE ASSESSING OFFICER. THEREFORE, IT CANNOT BE SAID THAT THE ASSESSEE HAS INTENTIONALLY VIOLATED THE RULES PRESCRIBED BY THE DEPARTMENT IN THIS REGARD. NON - MENTIONING OF THE PERMANENT ACCOUNT NUMBER I N THE RETURN OF INCOME WAS ON ACCOUNT OF NO N - AVAILABILITY OF PAN WITH THE ASSESSEE. THEREFORE, WE FIND THERE IS A REASONABLE CAUSE FOR NON - MENTIONING OF THE PERMANENT ACCOUNT NUMBER I N THE RETURN OF INCOME AND THEREFORE PENALTY UNDER SECTION 272B OF THE ACT OF RS.10,000/ - IS NOT PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 3 - : JUSTIFIABLE. WE A CCORDINGLY SET ASIDE THE ORDER OF THE LD. CIT(A) AND DELETE THE PENALTY. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 25.6.2014. SD/ - SD/ - [ A. K. GARODIA ] [ S UNIL KUMAR Y ADAV ] ACCOUNTANT MEMBER JUDICIA L MEMBER DATED: 25 TH JUNE , 2014 JJ: 1706 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ )