DCIT, Trichy V. Shri S.P.Chockalingam, Pudukkottai

ITA 2101/CHNY/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5081 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-05-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 18-05-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 10-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SRINIVAS
• Assessee Lawyers: S SRIVATSAN
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH C CHENNAI BEFORE DR. O. K. NARAYANAN, VICE PRESIDENT AND SHRI GEORGE MATHAN, JUDICIAL MEMBER .. I.T.A. NO. 2101/MDS/2010 ASSESSMENT YEAR : 2004-05 THE DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-I, TIRUCHIRAPALLI V. SHRI S.P. CHOCKALINGAM, 64, AGRAHARAM, ARANTHANGI, PUDUKOTTAI DT. (PAN: AETPC7512E) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI B. SRINIVAS RESPONDENT BY : SHRI S. SRIVATSAN O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED CIT(APPEALS), TRICHY IN ITA NO. 66/07-08 DATED 20- 09-2010 FOR THE ASSESSMENT YEAR 2004-05. 2. SHRI B. SRINIVAS, SR. DR REPRESENTED ON BEHALF O F THE REVENUE AND SHRI S. SRIVATSAN, CA REPRESENTED ON BEHALF OF THE ASSESSEE . 3. IT WAS SUBMITTED BY THE LEARNED DR THAT THE ASSE SSEE HAD REPAID LOANS TO HIS HUF AND HIS TWO SONS TO THE EXTENT OF ` 5,36,947/-. IT WAS THE SUBMISSION THAT THE ASSESSING OFFICER HAD CONSEQUENTLY LEVIED PENALTY U/S 271E OF THE I.T.A. NO. 2101/MDS/2010 2 INCOME-TAX ACT, 1961 ON ACCOUNT OF THE VIOLATION OF THE PROVISIONS OF SECTION 269. IT WAS THE SUBMISSION THAT THE LEARNED CIT(A) HAD CANCELLED THE LEVY OF PENALTY ON THE GROUND THAT THE ASSESSEE HAD REASONA BLE CAUSE. IT WAS THE SUBMISSION THAT THE ORDER OF THE LEARNED CIT(A) WAS LIABLE TO BE REVERSED. 4. IN REPLY, THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THE LEARNED CIT(A) HAD CONSIDERED THE FACT THAT THE REPAYMENT O F THE AMOUNT WAS TO THE HUF OF THE ASSESSEE AS ALSO TO THE SONS OF THE ASSE SSEE. IT WAS THE SUBMISSION THAT THE LEARNED CIT(A) HAD TAKEN INTO CONSIDERATIO N THE FACT THAT THE ASSESSEE ON ACCOUNT OF THREAT OF THE ASSESSEE LOSING HIS PRO PERTY, HE HAD BORROWED FUNDS FROM THE HUF AND HIS SONS AND AS THEY REQUIRED THE FUNDS IMMEDIATELY, THE SAME WAS REPAID. IT WAS THE SUBMISSION THAT THE LEARNED CIT(A) HAD CONSIDERED THE FACT THAT THE ASSESSEE DID HAVE A REASONABLE CAUSE. IT WAS ALSO SUBMITTED THAT UNDER IDENTICAL CIRCUMSTANCES THE CO-ORDINATE BENCH OF THIS TRIBUNAL HAD IN THE CASE OF THE SON OF THE ASSESSEE DELETED THE LEVY OF PENALTY U/S. 271D IN ITA NO. 24/MDS/2008 IN THE CASE OF SHRI C. SUBRAMANIAN. IT WAS THE SUBMISSION THAT THE HON'BLE JURISDICTIONAL HIGH COURT HAD ALSO UPHELD T HE VIEW THAT IF REASONABLE CAUSE WAS PROVED, A PENALTY PROVIDED UNDER SECTION 271E WAS NOT TO BE LEVIED. IT WAS THE SUBMISSION THAT THE LEARNED CIT(A) HAD A LSO CONSIDERED THE SAID DECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT I N THE CASE OF CIT V. RATNA AGENCIES REPORTED IN 284 ITR 609. HE VEHEMENTLY SU PPORTED THE ORDER OF THE LEARNED CIT(A). I.T.A. NO. 2101/MDS/2010 3 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PER USAL OF THE ORDER OF THE LEARNED CIT(A) CLEARLY SHOWS THAT THE LEARNED CIT(A ) HAD CONSIDERED THE DECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CAS E OF RATNA AGENCIES AS ALSO THE DECISION OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF SHRI C. SUBRAMANIAN, REFERRED TO SUPRA. IT WAS ALSO NOTICE D THAT THE LEARNED CIT(A) HAD CONSIDERED THE REASONABLE CAUSE SUBMITTED BY THE AS SESSEE AND HE HAD ACCEPTED THE CLAIM OF REASONABLE CAUSE. AS IT IS NOTICED TH AT THE LEARNED CIT(A) HAS CONSIDERED THE REASONABLE CAUSE AND AS IT IS NOTICE D THAT THE REASONABLE CAUSE CONSIDERED BY THE LEARNED CIT(A) DOES CONSTITUTE A REASONABLE CASE, WE ARE OF THE VIEW THAT THE CANCELLATION OF THE PENALTY BY TH E LEARNED CIT(A) IS ON A RIGHT FOOTING AND DOES NOT CALL FOR ANY INTERFERENCE. IN THE CIRCUMSTANCES, THE APPEAL OF THE REVENUE STANDS DISMISSED. 6. THE ORDER WAS PRONOUNCED IN THE COURT ON 18-05-2 011. SD/- SD/- (DR. O. K. NARAYANAN) (GEORGE MATHAN) VICE PRESIDENT JUDICIAL MEMBER CHENNAI, DATED THE 18 TH MAY, 2011. H. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE