Printlink Computer and Communication Pvt. Ltd., Bhubaneswar V. ACIT, Circle-2(2), Bhubaneswar

ITA 22/CTK/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3620 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 19-01-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Assessee Lawyers: B K MOHAPATRA
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 22/CTK/2016 ASSESSMENT YEAR : 2010 - 2011 PRINTLINK COMPUTER AND COMMUNICATION PVT LTD., PLOT NO.783, SAHID NAGAR, BHUBANESWAR. VS. ACIT, CIRCLE 2(2), BHUBANESWAR. PAN/GIR NO. AABCP 0619 G (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI B.K.MOHAPATRA, AR RE VENUE BY : SHRI D.K.PRADHAN, DR DATE OF HEARING : 31 /07 / 2017 DATE OF PRONOUNCEMENT : 31 /07 / 2017 O R D E R PER N.S.SAINI, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT - 1, BHUBANESWAR DATED 6.10.2015 FOR THE ASSESSMENT YEAR 2009 - 2010. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE LD CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN IMP OSING PENALTY UNDER SECTION 2 71(1)(B) OF TH E I.T.ACT, 1961 FOR RS.10,000/ - 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFF ICER ISSUED NOTICE S U/S.142(1) AND 143(2) OF THE ACT REQUIRING THE ASSESSEE TO PRODUCE THE BOOKS OF ACCOUNT AND OTHER DETAILS. SINCE, THERE WAS NO COMPLIANCE BY THE ASSESSEE, TO THE STATUTORY NOTICE THE ASSESSING OFFICER LEVIED PENALTY OF RS.10,000/ - U/S .271(1)(B) OF THE ACT. 2 ITA NO.22/CTK/2016 ASSESSMENT YEAR : 2010 - 2011 4. ON APPEAL, LD CIT(A) CONFIRMED THE PENALTY LEVIED BY THE ASSESSING OFFICER. 5. BEFORE US LD A.R. OF THE ASSESSEE SUBMITTED THAT LD A .R. OF THE ASSESSEE HAD FULLY CO - OPERATED IN THE ASSESSMENT PROCEEDINGS AND ASSESSMENT WAS COMPLE TED U/S.143(3) OF THE AC T, AS CAN BE SEEN FROM THE ASSESSMENT ORDER U/S.143(3) OF THE ACT PASSED ON 8.3.2013. HENCE, IT CANNOT BE SAID THAT THERE WAS NO COMPLIANCE BY THE ASSESSEE TO THE STATUTORY NOTICES ISSUED BY THE ASSESSING OFFICER. HENCE, HE PRAYED THAT THE PENALTY SHOULD BE DELETED. 6. ON THE OTHER HAND, LD D.R. SUPPORTED THE ORDERS OF LOWER AUTHORITIES. 7. AFTER HEARING THE RIVAL SUBMISSIONS AND PERUSING THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD, WE FIND FROM THE ASSESSMENT ORDER THAT THE ASSESSING OFFICER HAS STATED IN HIS ORDER THAT BEFORE HIM THE LD A.R. OF THE ASSESSEE APPEARED AND FILED WRITTEN SUBMISSIONS. THE ASSESSING OFFICER ALSO ADMITS IN THE ASSESSMENT ORDER THAT LD A.R. PRODUCED BILLS A ND VOUCHERS IN SUPPORT OF THE CLAIM OF DEDUCTION. THE ONLY GROUND ON WHICH PENALTY U/S.271(1)(B) OF THE ACT HAS BEEN LEVIED BY THE ASSESSING OFFICER IS THAT THE ASSESSEE DID NOT COMPLY WITH THE STATUTORY NOTICES BEFORE HIM. IN THE SIMILAR FACTS AND CIRCUM STANCES OF THE CASE, WE FIND THAT THE AHMEDABAD BENCH OF THIS TRIBUNAL IN THE CASE OF M/S.RAJ ENTERPRI SE VS ITO, WARD - 9(1) IN ITA NO.958/AHD/2011 [ASSTT. YEAR: 2007 - 08 ] ORDER DATED 4.5.2011 HAS HELD THAT WHEN AN ASSESSMENT HAS BEEN MADE UNDER SEC.143(3) AND NOT UNDER SEC.144 OF THE I.T. ACT , IT MEANS THAT SUBSEQUENT 3 ITA NO.22/CTK/2016 ASSESSMENT YEAR : 2010 - 2011 COMPLIANCE IN THE ASSESSMENT PROCEEDINGS WAS CONSIDERED AS GOOD COMPLIANCE AND THE DEFAULTS COMMITTED EARLIER WERE IGNORED BY THE ASSESSING OFFICER AND, THEREFORE, THERE IS NO CASE FOR LEVY OF PENALTY UNDER SEC.271(1)(B) OF THE ACT. WE FIND THAT IN THE PR ESENT APPEAL ALSO, THE FACTS ARE IDENTICAL. THEREFORE, RESPECTFULLY FOLLOWING THE DECISION OF AHMEDABAD TRIBUNAL IN THE CASE OF M/S.RAJ ENTERPRISE (SUPRA), WE SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND DELETE THE LEVY OF PENALTY OF RS.10,000/ - UNDER S EC.271(1)(B) OF THE I.T. ACT AND ALLOW THE APPEAL OF THE ASSESSEE. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCE D IN THE OPEN COURT ON 31 /07 /2017 . SD/ - SD/ - ( PAVAN KUMAR GADALE) ( N.S SAINI) JUDICIALMEMBER A CCOUNTANT MEMBER CUTTACK; DATED 31 /07 /2017 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : PRINTLINK COMPUTER AND COMMUNICATION PVT LTD., PLOT NO.783, SAHID NAGAR, BHUBANESWAR. 2. THE RESPONDENT. ACIT, CIRCLE 2(2), BHUBANESWAR. 3. THE CIT(A) - 1, BHUBANESWAR 4. PR.CIT - 1, BHUBANESWAR, 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//