Mr. B. Murulikrishna, Bangalore V. Additional Commissioner of Income tax, Bangalore

ITA 2141/BANG/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7520 (ITAT-BANGALORE)
• Duration Of Justice: 9 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 07-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B R RAMESH
• Assessee Lawyers: G S PRASANTH
• Keywords: Opportunity of being heard; Reasonable cause
• Section: 273B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH A, BANGALORE BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI VIJAY PAL RAO, JUDICIAL MEMBER ITA NO. 2141 (BANG) 2016 (ASSESSMENT YEAR : 2008 09) MR. B. MURALIKRISHNA, NO. 75, 15 TH CROSS, DODDANNA INDUSTRIAL ESTATE, BANGALORE 560008. PAN: AINPM5549D APPELLANT VS ADDL. CIT, RANGE 6, BANGALORE. RESPONDENT ASSESSEE BY : SHRI G. S. PRASANTH, C. A . REVENUE BY : SHRI B. R. RAMESH, JCIT DR DATE OF HEARING : 26-09-2017 DATE OF PRONOUNCEMENT : 28-09-2017 O R D E R PER A. K. GARODIA, A. M.: THIS APPEAL IS FILED BY THE ASSESSEE AND THIS IS D IRECTED AGAINST THE ORDER OF CIT (A) 6, BANGALORE DATED 05.08.2016 FO R A. Y. 2008 09. 2. THE ASSESSEE HAS RAISED AS MANY AS 11 GROUNDS B UT THE ONLY GRIEVANCE OF THE ASSESSEE IS ABOUT PENALTY OF RS. 1 33,400/- IMPOSED U/S 271D. THERE ARE TWO TECHNICAL OBJECTIONS. FIRST SUC H OBJECTION IS THIS THAT THE PENALTY ORDER IS TIME BARRED U/S 275 (1) (C) OF I T ACT. SECOND SUCH OBJECTION IS THIS THAT THE AO HAS NOT PROVIDED ADEQ UATE OPPORTUNITY OF BEING HEARD. ITA NO. 2141/BANG/2016 2 3. LEARNED AR OF THE ASSESSEE SUBMITTED THAT ALTHOU GH VARIOUS GROUNDS ARE RAISED BUT IF THE MATTER IS RESTORED TO AO FOR FRESH DECISION AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD, THE ASSESSEE WILL BE SATISFIED AND IN THE SET ASIDE PROCEEDINGS, HE WILL RAISE ALL ISSUES. LEARNED DR OF THE REVENUE SUBMITTED THAT THREE OPPORTUNITIES WERE PRO VIDED BY THE AO BUT WERE NOT AVAILED BY THE ASSESSEE AND THEREFORE, THE ASSESSEE DOES NOT DESERVE ANY FURTHER OPPORTUNITY. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIN D THAT NO DOUBT, THREE NOTICES WERE ISSUED BY THE A.O. ON 23.08.2012 , 11.01.2013 AND 12.02.2013 AND SERVED ON THE ASSESSEE AS NOTED BY T HE AO ON PAGE 2 OF THE PENALTY ORDER AND THERE WAS NO COMPLIANCE BY THE AS SESSEE. BUT THE ASSESSEE IS AN INDIVIDUAL HAVING MEAGER INCOME OF R S. 727,430/- IN THE PRESENT YEAR AS PER RETURN OF INCOME AS NOTED IN TH E ASSESSMENT ORDER. THE ASSESSED INCOME IS RS. 974,430/-. THEREFORE, WE FEE L THAT IN THE INTEREST OF JUSTICE, THE ASSESSEE SHOULD BE PROVIDED ONE MORE O PPORTUNITY TO ESTABLISH THAT THERE WAS REASONABLE CAUSE FOR ACCEPTING CASH LOAN AS PROVIDED IN SECTION 273B AND NO PREJUDICE WILL BE CAUSED TO THE REVENUE IF SUCH AN OPPORTUNITY IS PROVIDED. THEREFORE, WE SET ASIDE TH E ORDER OF CIT (A) AND RESTORE THE MATTER TO A.O. FOR A FRESH DECISION AFT ER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD. WE DO NOT MAKE ANY COMM ENT ON MERIT OR TIME BARRING ASPECT AND ALL ASPECTS ARE OPEN BEFORE THE A.O. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- (VIJAY PAL RAO) SD/- (A.K. GARODIA) JUDICAL MEMBER ACCOUNTANT MEMBER PLACE: BANGALORE D A T E D : 28.09.2017 *MS ITA NO. 2141/BANG/2016 3 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.