R.K. Agencies Ltd., Kolkata V. DCIT, C ircle- 4, Kolkata, Kolkata

ITA 2117/KOL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9345 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2000-2001
• Appeal Filed On: 24-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K PRAMANIK
• Assessee Lawyers: ARVIND AGARWAL
• Keywords: Reasonable cause

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : KOLKATA () BEFORE . . . . . . . . , , , , , !'# !'# !'# !'# /AND . .. . . .. .' '' ' , $ ) [BEFORE HONBLE SRI D. K. TYAGI, JM & HONBLE SRI C . D. RAO, AM] #% #% #% #% / I.T.A NO. 2117/KOL/2010 &' '() &' '() &' '() &' '()/ // / ASSESSMENT YEAR : 2000-01 R. K. AGENCIES LTD. -VS- DEPUTY COMMISSIONER O F INCOME-TAX, (PA NO.AABCR 2803 E) CIRCLE-4, KOLKATA. ( +, /APPELLANT ) (-+,/ RESPONDENT ) FOR THE APPELLANT : SRI ARVIND AGARWAL FOR THE RESPONDENT : SRI A. K. PRAMANIK . / ORDER PER D. K. TYAGI, JM ( . . . . . . . . , , , , ) THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER PASSED BY THE LD. CIT(A), KOLKATA DATED 10.03.2010 FOR ASSESSMENT YEA R 2000-01 IN RESPECT OF SUSTAINING THE PENALTY OF RS.5,000/- U/S. 271F OF T HE I. T. ACT, 1961. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE AS SESSING OFFICER LEVIED PENALTY OF RS.5,000/- U/S. 271F OF THE I. T. ACT SINCE THE ASS ESSEE DID NOT FILE ITS RETURN IN TIME AND ALSO FAILED TO ESTABLISH THAT HE WAS PREVENTED BY S UFFICIENT AND REASONABLE CAUSE FOR NOT FILING THE RETURN. IN APPEAL, THE LD. CIT(A) CONFI RMED THIS ACTION OF THE ASSESSING OFFICER. BEING FURTHER AGGRIEVED, THE ASSESSEE IS NOW IN APPEAL BEFORE US. 3. AT THE TIME OF HEARING BEFORE US, THE LD. COUNSE L FOR THE ASSESSEE WHILE REITERATING HIS SAME SUBMISSIONS AS SUBMITTED BEFOR E THE LOWER AUTHORITIES FURTHER SUBMITTED THAT THE PRINCIPAL PLACE OF BUSINESS OF T HE ASSESSEE IS SITUATED IN THE NORTH EASTERN STATE OF ASSAM, THE AREA OF WHICH WAS A DIS TURBED AREA AND DUE TO CERTAIN UNAVOIDABLE CIRCUMSTANCES BEYOND THE CONTROL OF THE ASSESSEE, THE ACCOUNTS OF IT COULD NOT BE AUDITED AND, THEREFORE, THE RETURN COULD NOT BE FILED IN TIME. HE ALSO CONTENDED THAT THE SAME WAS EXPLAINED TO THE LOWER AUTHORITIE S. HE ALSO CONTENDED THAT THE ASSESSEE HAS COMMITTED A DEFAULT FOR NOT FILING THE RETURN I N TIME FOR WHICH PENALTY IS LEVIABLE AS ON 31 ST MARCH, 2001. AS PER THE PROVISION OF SECTION 271F , AS IT STOOD ON THE DATE OF THE PENALTY, THE AMOUNT OF PENALTY LEVIABLE WAS ONLY RS .1,000/- AND THE LIMIT WAS INCREASED 2 TO RS.5,000/- BY THE FINANCE ACT 2001 W.E.F. 1 ST JUNE, 2001. AS PER THE PROVISIONS OF LAW, PENALTY OF RS.5000/- COULD NOT HAVE BEEN LEVIE D AS THERE WAS NO STATUTORY PROVISION FOR THE SAID AMOUNT OF RS.5,000/- FOR THE DEFAULT. 4. ON THE OTHER HAND, THE LD. DR RELIED ON THE ORDE RS OF THE LOWER AUTHORITIES AND PRAYED BEFORE THE BENCH TO CONFIRM THE SAME. 5. AFTER HEARING BOTH THE PARTIES AND PERUSING THE MATERIAL AVAILABLE ON RECORD, WE FIND THAT IT IS AN UNDISPUTED FACT THAT THE ASSESSE E HAS COMMITTED A DEFAULT FOR NOT FILING THE RETURN IN TIME. FOR THIS DEFAULT, THE ASSESSING OFFICER IMPOSED PENALTY OF RS.5,000/- AND THE LD. CIT(A) ALSO CONFIRMED THE SAME. WE ALS O FIND THAT AS ON 31 ST MARCH, 2001, ACCORDING TO PROVISION OF SECTION 271F, AS IT STOOD ON THE DATE OF THE PENALTY, THE AMOUNT OF PENALTY LEVIABLE WAS ONLY RS.1,000/- AND THE LIM IT WAS INCREASED TO RS.5,000/- BY THE FINANCE ACT, 2001 W.E.F. 1 ST JUNE, 2001. SINCE THE CASE OF THE ASSESSEE FALLS BEFORE 1 ST JUNE, 2001, WE ARE OF THE CONSIDERED OPINION THAT T HE PENALTY IN THIS CASE BE IMPOSABLE ONLY RS.1,000/-. THE APPEAL OF THE ASSESSEE IS, TH EREFORE, ALLOWED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. 7. ORDER IS PRONOUNCED IN THE OPEN COURT. SD/- SD/- . . ' , $ . . , (C. D. RAO) (D. K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER ( $ $ $ $) )) ) DATED : 10 TH FEBRUARY, 2011 '/0 &12 3' JD.(SR.P.S.) . 4 -5 65(7- COPY OF THE ORDER FORWARDED TO: 1 . +, / APPELLANT M/S. R. K. AGENCIES LTD., C/O G.P. AGRA WAL & ASSOCIATES, 7A, KIRAN SHANKAR RAY ROAD, 2 ND FLOOR, KOLKATA-1. 2 -+, / RESPONDENT, DCIT, CIRCLE-4, KOLKATA. 3 . .& / THE CIT(A), KOLKATA 4. .& ( )/ CIT, KOLKATA. 5 . '= -& / DR, KOLKATA BENCHES, KOLKATA 5 -/ TRUE COPY, .&>/ BY ORDER, ? #2 /ASSTT. REGISTRAR .