Alagusundaram, Trichy V. ITO Ward 3(1), Trichy

ITA 1862/CHNY/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4404 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 04-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS M SUBASHRI
• Assessee Lawyers: K MEENAKSHISUNDARAM ITP
• Keywords: Reasonable cause

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: CHENNAI , , ( BEFORE SHRI GEORGE MATHAN , JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.1862/CHNY/2018 /ASSESSMENT YEAR: 2013-14 SRI ALAGUSUNDARAM, 65, VARAGANERI BAZAAR, TRICHY-620 008. VS. THE INCOME TAX OFFICER, WARD-3(1), TIRUCHIRAPALLI. [PAN: ACBPA 5193 M ] ( * /APPELLANT) ( +,* /RESPONDENT) * - / APPELLANT BY : MR.K.MEENAKSHI SUNDARAM, ITP +,* - /RESPONDENT BY : MRS.M.SUBASHRI, JCIT - /DATE OF HEARING : 20.03.2019 - /DATE OF PRONOUNCEMENT : 20.03.2019 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1, TIRUCHIRAPA LLI, IN ITA NO.258/15-16/CIT(A)-1/TRY. DATED 13.04.2018 FOR THE AY 2013-14, AGAINST THE CONFIRMATION OF THE PENALTY LEVIED U/S. 271B OF THE IT ACT. 2. MRS. M.SUBASHRI, JCIT, REPRESENTED ON BEHALF OF THE REVENUE AND MR.K.MEENAKSHI SUNDARAM, ITP, REPRESENTED ON BEHALF OF THE ASSESSEE. ITA NO.1862/CHNY/2018 :- 2 -: 3. IT WAS SUBMITTED BY THE LD.AR THAT THE ASSESSEE IS AN INDIVIDUAL WHO HAD FILED RETURN OF INCOME ELECTRONICALLY FOR THE A Y 2013-14 ON 01.10.2013 ADMITTING A TOTAL INCOME OF RS.2,21,560/-. IT WAS A SUBMISSION THAT THE ASSESSEE IS IN THE BUSINESS OF COLLECTING WASTE PAP ER AND SUPPLYING THE SAME TO PAPER MILLS FOR MANUFACTURING OF WRITING PA PER FOR FIXED COMMISSION. THE ASSESSEES TURNOVER DURING THE REL EVANT AY WAS RS.1,34,75,404/-. IT WAS A SUBMISSION THAT THE ASS ESSEES AUDITOR MORE SPECIFICALLY LATE CHARTERED ACCOUNTANT NAMELY SHRI R.KADAR BATCHA WAS SUFFERING FROM CHRONIC KIDNEY FAILURE AND HAD BEEN UNDERGOING DIALYSIS ON DAILY BASIS FROM 2011 TO 2018 AND HE PASSED AWAY IN SEPTEMBER, 2018. IT WAS A SUBMISSION THAT ON ACCOUNT OF THIS, THE AU DIT REPORT COULD NOT BE FILED. IT WAS A SUBMISSION THAT THE PENALTY LEVIED U/S.271B MAY BE DELETED IN VIEW OF THE REASONABLE CAUSE. 4. IN REPLY, THE LD.DR SUBMITTED THAT THE ASSESSEE HAS NOT PROVED THE REASONABLE CAUSE. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. 6. ADMITTEDLY, THE ASSESSEE HAS FILED AN AFFIDAVIT SWORN TO BY THE CLERK OF THE LATE CHARTERED ACCOUNTANT SHRI R. KADAR BATC HA WHEREIN THE FACTS OF THE CHRONIC KIDNEY FAILURE OF THE SAID CHARTERED AC COUNTANT HAS BEEN BROUGHT OUT. THE SAID FACTS HAVE NOT BEEN SHOWN TO BE FALSE. THIS BEING SO, WE ARE OF THE VIEW THAT THE ASSESSEE HAS SHOWN REASONABLE CAUSE FOR ITA NO.1862/CHNY/2018 :- 3 -: NON-FILING OF THE AUDIT REPORT. IN THESE CIRCUMSTA NCES, THE REASONABLE CAUSE AS SHOWN BY THE ASSESSEE IS ACCEPTED U/S.273B AND THE PENALTY AS LEVIED BY THE AO AND AS CONFIRMED BY THE LD.CIT(A) U/S.271B OF THE ACT STANDS DELETED. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 20 TH DAY OF MARCH, 2019 IN CHENNAI. SD/- SD/- ( ) ( INTURI RAMA RAO ) /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) /JUDICIAL MEMBER /CHENNAI, 4 /DATED: 20 TH MARCH, 2019. TLN - +56 76 /COPY TO: 1. * /APPELLANT 4. 8 /CIT 2. +,* /RESPONDENT 5. 6 + /DR 3. 8 ( ) /CIT(A) 6. /GF