Srinivas Laxman Muthe, Nashik V. Joint Commissioner of Income-tax,

ITA 2173/PUN/2013

• Counselvise Citation: 217324514 RSA 2013
• Duration Of Justice: 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 16-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P S NAIK
• Keywords: Reasonable cause
• Section: 273B; 27

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.2173/PN/2013 (ASSESSMENT YEAR: 2010-11) SRINIVAS LAXMAN MUTHE SNEHBANDH, PLOT NO.14, PRABHAT NAGAR, MHASROOL, NASHIK 422004 PAN: AWOPM5940P . APPELLANT VS. THE JOINT COMMISSIONER OF INCOME TAX RANGE-2, NASHIK. . RESPONDENT APPELLANT BY : NONE RESPONDENT BY : SHRI P.S. NAIK DATE OF HEARING : 21-10-2014 DATE OF PRONOUNCEMENT : 30-10-2014 ORDER PER SUSHMA CHOWLA, JM: THIS APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CI T(A)-I, NASHIK DATED 21.11.2013 RELATING TO ASSESSMENT YEAR 2010 -11 IS AGAINST ORDER PASSED UNDER SECTION 272A(1)(C) OF THE INCOME-TAX A CT. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. ON THE BASIS OF FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND AS PER LAW, THE COMMISSIONER OF INCOME TAX, (APPEALS)-I, NASHIK IS NOT JUSTIFIED IN CONFIRMING THE PENALTY OF RS.10,000/- LEVIED BY THE ASSESSING OFFICER U/S.272A(1)(C) OF THE ACT AND FURTHER THE COMMISSIONER OF INCOME TAX, (APPEALS)-I, NASHIK IS NOT JUSTIFIED IN HO LDING THAT THE APPELLANT HAS DELIBERATELY DEFIED THE STATU TORY PROVISIONS. 2. THE APPELLANT CRAVES FOR ADDITION TO, DELETION, ALTERATIO N, MODIFICATION, CHANGE ANY OF THE GROUNDS CONFIRMING T HE ABOVE MENTIONED PENALTY. ITA NO.2173/PN/2013 SRINIVAS LAXMAN MUTHE 2 3. DESPITE THE SERVICE OF NOTICE, NONE APPEARED ON BEHALF OF THE ASSESSEE NOR ANY APPLICATION FOR ADJOURNMENT WAS MOVED. LOOKING AT THE SMALLNESS OF THE ISSUE, WE PROCEED TO DECIDE THE PRES ENT APPEAL AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE. 4. THE ONLY ISSUE RAISED IN THE PRESENT APPEAL IS IN RELAT ION TO LEVY OF PENALTY UNDER SECTION 272A(1)(C) OF THE ACT AT RS.10,000/-. 5. THE BRIEF FACTS RELATING TO THE ISSUE ARE THAT, THE CASE OF ONE M/S . P.P. GOGAD & CO. WAS UNDER SCRUTINY BEFORE THE JCIT, RA NGE-2, NASHIK. IN RELATION TO THE PROCEEDINGS UNDER THE INCOME TAX ACT, IN THE CASE OF THE SAID M/S. P.P. GOGAD & CO., SUMMONSS UNDE R SECTION 131(1) OF THE ACT WERE ISSUED TO THE ASSESSEE BEFORE US. HE WAS ASKED TO ATTEND OFFICE PERSONALLY ON 14.01.2013 AT 3.30 PM. HOWE VER, THE ASSESSEE FAILED TO ATTEND THE OFFICE OF THE JCIT OR FILE ANY WRITTEN SUBMISSIONS BEFORE THE JCIT. THE ASSESSEE WAS SHOW CAU SED TO EXPLAIN AS TO WHY PENALTY UNDER SECTION 272A(1)(C) OF THE AC T SHOULD NOT BE LEVIED. THE ASSESSEE FAILED TO APPEAR OR FURNISH A NY WRITTEN SUBMISSIONS BEFORE THE JCIT AND CONSEQUENTLY, PENALTY UN DER SECTION 272A(1)(C) OF THE ACT AT RS.10,000/- WAS LEVIED BY THE JCIT, RANGE-2, NASHIK. 6. BEFORE THE CIT(A), IT WAS EXPLAINED BY THE ASSESSEE THA T HE WAS CARRYING ON THE BUSINESS OF JOB WORK AND LABOUR WORK CO NTRACTOR FOR THE LAST MORE THAN 7-8 YEARS. PRIOR TO THAT, HE WAS WO RKING WITH MAHARASHTRA JEEVAN PRADHIKARAN AS TECHNICAL ASSISTANT. THE ASSESSEE FURTHER STATED THAT DURING THE YEAR UNDER RE VIEW, HE HAD CARRIED OUT THE WORK OF EXCAVATION, LAYING, LOWERING, JOINING A ND ITA NO.2173/PN/2013 SRINIVAS LAXMAN MUTHE 3 COMMISSIONING OF WATER SUPPLY PIPELINES AT TRIVANDRUM, KERALA . THE ASSESSEE FURTHER CLAIMS THAT IN REPLY TO THE NOTICE RECE IVED ON 01.01.2013, NECESSARY AND POSSIBLE COMPLIANCE WAS MADE BY THE ASSESSEE ON 07.01.2013. AGAIN SUMMONS WERE ISSUED TO TH E ASSESSEE ON 08.01.2013 TO FURNISH THE COPY OF THE BANK ACCOUNT A S WELL AS PHOTO IDENTITY AND THE DATE OF COMPLIANCE WAS 14.01.2013. HOWEVER, THE SAID SUMMONS WERE RECEIVED ON 10.01.2013 AND THERE WERE HOLIDAYS DUE TO SATURDAY AND SUNDAY ON 12 TH AND 13 TH JANUARY AND ON 14 TH JANUARY, 2013 THERE WAS MAKAR SANKRANTI I.E. ONE OF THE BIGGEST FESTIVALS OF MAHARASHTRA. THE PLEA OF THE ASSESSEE WAS THAT AS HE WAS THE KARTA OF THE FAMILY AND ALL THE CLOSE RELATIVES HAD GATHERED AT HIS RESIDENCE, HE COULD NOT APPEAR ON 14.01.2013. HOWE VER, THE COMPLIANCE WAS MADE BY HIM ON 28.01.2013. THE DEFAULT WAS CLAIMED TO BE A TECHNICAL DEFAULT AND AS THERE WAS NO LOSS OF REV ENUE, THERE WAS NO MERIT IN THE LEVY OF PENALTY UNDER SECTION 272A(1)(C) OF THE ACT. THE CIT(A) NOTED THAT THE ASSESSEE DID NOT COMPLY WITH THE SUMMONS ISSUED FOR ATTENDANCE AND THE REQUISITE DETAILS WERE FURNISHED AFTER THE LEVY OF THE PENALTY UNDER SECTION 272A(1)(C) OF THE ACT AND THERE WAS NO MERIT IN THE PLEA OF THE ASSESSEE. THE CIT(A) UPHELD TH E PENALTY LEVIED UNDER SECTION 272A(1)(C) OF THE ACT AT RS.10,000/-. 7. ON THE PERUSAL OF THE RECORD AND THE ORDERS PASSED BY THE AUTHORITIES BELOW, WE FIND THAT THE SUMMONS UNDER SECTION 131(1) OF THE ACT WERE DATED 08.01.2013, WERE ISSUED UPON THE ASS ESSEE TO APPEAR ON 14.01.2013. THE ASSESSEE CLAIMS THAT THE SAID SUMMONS WERE RECEIVED BY HIM ON 10.01.2013 AND THEREAFTER ON 12 TH AND 13 TH JANUARY, 2013 THERE WERE HOLIDAYS DUE TO SATURDAY AND SUNDAY. FURTHER, 14 TH JANUARY, 2013 WAS THE FESTIVAL OF MAKAR SANKRANTI AND BECAUSE OF THE FAMILY GATHERING AT HIS RESIDENCE, THE ASSE SSEE WAS NOT ITA NO.2173/PN/2013 SRINIVAS LAXMAN MUTHE 4 ABLE TO APPEAR BEFORE THE ASSESSING OFFICER. THEREAFTER, N OTICE UNDER SECTION 274 OF THE ACT WAS ISSUED TO THE ASSESSEE AS T O WHY PENALTY UNDER SECTION 272A(1)(C) OF THE ACT SHOULD NOT BE LEVIED AND THE ASSESSEE WAS ASKED TO APPEAR ON 23.01.2013. HOWEVER, THERE WAS NO RESPONSE TO THE SAME. ANOTHER SUMMONS UNDER SECTION 131(1) OF THE ACT WERE SUBSEQUENTLY ISSUED ON 18.01.2013 ASKING THE ASSESSEE TO APPEAR ON 23.01.2013. AS PER THE PENALTY ORDER, THE ASS ESSEE FAILED TO COMPLY WITH THE SAID NOTICE ALSO. THE ASSESSEE CLAIMS TO HAVE FURNISHED THE INFORMATION ON 28.01.2013. THE INFORMATION REQUISITIONED FOR WAS THE BANK STATEMENT OF THE ASSESSEE AND THE PHOTO IDENTITY OF THE ASSESSEE. 8. UNDER THE PROVISIONS OF SECTION 272A(1)(C) OF THE ACT, IF ANY PERSON FAILS TO APPEAR BEFORE THE CONCERNED OFFICE OR PROD UCE THE BOOKS OF ACCOUNT OR OTHER DOCUMENTS IN RESPONSE TO SUMMONS ISSUED UNDER SECTION 131(1) OF THE ACT, THEN HE SHALL PAY SUM OF RS.10,0 00/- FOR EACH SUCH DEFAULT OR FAILURE, BY WAY OF PENALTY. HOWEVER, W HERE THE ASSESSEE HAS A BONAFIDE AND REASONABLE CAUSE FOR THE S AID FAILURE, THEN NO PENALTY IS TO BE IMPOSED IN VIEW OF THE PROVISIONS OF SECTION 273B OF THE ACT. THE ASSESSEE BEFORE US CLAIMS THAT BEC AUSE OF THE FESTIVAL OF MAKARA SANKRANTHI, WHICH WAS ONE OF THE MAJOR FESTIVALS OF MAHARASHTRA, THE ASSESSEE WAS UNABLE TO APPEAR BEFORE THE OFFICER ON 14.01.2013. FURTHER, THE REQUISITE DETAILS WERE FILED BY THE ASSESSEE ON 28.01.2013. THE JCIT, NASHIK HAS LEVIED THE PENALTY UND ER SECTION 272A(1)(C) OF THE ACT VIDE ORDER DATED 29.01.2013. IN THE TOTALITY OF THE ABOVE SAID FACTS AND CIRCUMSTANCES, WHERE THE ASSESSEE HAD MADE COMPLIANCE TO THE REQUISITION ISSUED BY THE JCIT AND BECA USE THE ASSESSEE HAD A REASONABLE CAUSE FOR NON-APPEARANCE ON THE DATE OF HEARING, WE FIND NO MERIT IN LEVY OF PENALTY UNDER SECTION 27 2A(1)(C) OF ITA NO.2173/PN/2013 SRINIVAS LAXMAN MUTHE 5 THE ACT. ACCORDINGLY, WE DIRECT THE ASSESSING OFFICER TO D ELETE THE PENALTY UNDER SECTION 272A(1)(C) OF THE ACT. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE THUS, ALLOWED. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON THIS 30 TH DAY OF OCTOBER, 2014. SD/- SD/- (G.S. PANNU) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE, DATED: 30 TH OCTOBER, 2014. GCVSR COPY OF THE ORDER IS FORWARDED TO : - 1) THE ASSESSEE; 2) THE DEPARTMENT; 3) THE CIT(A)-I, PUNE; 4) THE CIT-I, PUNE; 5) THE DR B BENCH, I.T.A.T., PUNE; 6) GUARD FILE. BY ORDER ///TRUE COPY// ASSISTANT REGISTRAR I.T.A.T., PUNE