M/s. Janardan J.Raval, Mehsana V. The ACIT.,Mehsana Circle, Mehsana

ITA 2204/AHD/2009

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 50736 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 15-09-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 13-07-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K VOHRA
• Assessee Lawyers: S N DIVETIA
• Keywords: Reasonable cause

Judgement Text

, , , , , IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, A BENCH . .. . . .. . , , , , !'# !'# !'# !'#, , , , $ $ $ $ %% % & %% % & %% % & %% % &, , , , ' ' ' ' ( # ( # ( # ( # BEFORE S/SHRI G.D. AGARWAL, VICE-PRESIDENT AND MUKUL KR. SHRAWAT, JUDICIAL MEMBER) ITA NO.2204/AHD/2009 [ASSTT. YEAR : 2005-2006] M/S.JANDARDHAN J. RAVAL NR. VIJAY GUEST HOUSE HIGHWAY, MEHSANA PAN : AABFJ 3034 K /VS. ACIT, MEHSANA CIRCLE MEHSANA. ( (( (*+ *+ *+ *+ / APPELLANT) ( (( (,-*+ ,-*+ ,-*+ ,-*+ / RESPONDENT) .& / 0 (/ ASSESSEE BY : SHRI S.N. DIVETIA ' / 0 (/ REVENUE BY : SHRI R.K. VOHRA DATE OF HEARING : 15 TH AUGUST, 2011 DATE OF PRONOUNCEMENT : 30 TH SEPTEMBER, 2011 (2 / O R D E R PER G.D. AGARWAL , VICE-PRESIDENT : THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEAL S), GANDHINAGAR DATED 06.5.2009 ARISING OUT OF THE ORDER OF THE ASSESSING OFFICER UNDER SECTION 144OF THE INCOME TAX ACT, 1961. 2. THE ONLY GROUND IN THIS APPEAL BY THE ASSESSEE I S AGAINST LEVY OF PENALTY OF RS.1,00,000/- UNDER SECTION 271B. 3. AT THE TIME OF HEARING BEFORE US, IT IS STATED B Y THE LEARNED COUNSEL THAT ALONG WITH THE RETURN, THE ASSESSEE FURNISHED AUDIT ED REPORT. HOWEVER, THE SAID COPY OF THE AUDIT REPORT WAS UNSIGNED. THIS WAS A N INADVERTENT MISTAKE ON THE PART OF THE CLERICAL STAFF OF THE ASSESSEES COUNSE L, WHO PREPARED THE ASSESSEES RETURN. THAT SUCH MISTAKE WAS NEITHER NOTICED BY T HE ASSESSEE NOR THE AO DURING THE ASSESSMENT PROCEEDINGS. THAT WHEN BY WA Y OF PENALTY NOTICE, THE AO INFORMED THAT THE AUDIT REPORT IS UNSIGNED, THE ASSESSEE DULY FURNISHED THE ITA NO.2204/AHD/2009 -2- SIGNED COPY OF THE AUDIT REPORT. THAT EACH AND EVE RY FIGURE IN THE UNSIGNED COPY OF THE AUDIT REPORT FURNISHED BY THE ASSESSEE WAS THE SAME AS IN THE SIGNED AUDITED REPORT. THEREFORE, THE ASSESSMENT COMPLETE D ON THE BASIS OF THE UNSIGNED AUDIT REPORT WAS NOT REOPENED BY THE REVEN UE. HE THEREFORE SUBMITTED THAT NON-FURNISHING OF THE SIGNED COPY OF THE AUDIT REPORT WAS ONLY AN INADVERTENT MISTAKE. THEREFORE, PENALTY UNDER S ECTION 271B SHOULD NOT BE LEVIED. THE LEARNED DR RELIED UPON ORDERS OF THE AUTHORITIES BELOW. HE HAS STATED THAT UNSIGNED AUDIT REPORT IS NOT A REPORT A T ALL, AND THEREFORE, IT HAS TO BE HELD THAT THE ASSESSEE FURNISHED THE RETURN OF INCO ME WITHOUT ANY AUDITED REPORT. THEREFORE, THE ASSESSEE HAS VIOLATED THE P ROVISIONS OF SECTION 44AB FOR WHICH THE PENALTY UNDER SECTION 271B WAS RIGHTLY LE VIED BY THE AO AND SUSTAINED BY THE CIT(A),. THE ORDER OF THE CIT(A) SHOULD BE SUSTAINED. 4. WE HAVE CAREFULLY CONSIDERED THE ARGUMENTS OF BO TH THE SIDES AND PERUSED THE MATERIAL PLACED BEFORE US. AFTER CONSI DERING THE FACTS AND CIRCUMSTANCES OF THE CASE AND ARGUMENTS OF BOTH THE SIDES, WE AGREE WITH THE SUBMISSIONS OF THE LEARNED COUNSEL THAT IT WAS AN I NADVERTENT MISTAKE BY WHICH THE UNSIGNED COPY OF THE AUDIT REPORT WAS FURNISHED ALONG WITH RETURN OF INCOME. IT IS NOT THE CASE OF THE REVENUE THAT IN SUCH AUDIT REPORT FIGURES WERE DIFFERENT THAN WHAT WAS IN THE SIGNED COPY OF THE A UDIT REPORT. THE SIGNED COPY OF THE AUDIT REPORT IS DULY FURNISHED BY THE ASSESS EE WHEN THIS MISTAKE WAS POINTED OUT BY THE AO. IN VIEW OF THE ABOVE, WE H OLD THAT THE ASSESSEE WAS PREVENTED FROM REASONABLE CAUSE IN FURNISHING THE S IGNED COPY OF THE AUDIT REPORT ALONG WITH RETURN OF INCOME. ACCORDINGLY, W E QUASH THE PENALTY LEVIED UNDER SECTION 271B. 5. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT THE DATE MENTIONED O N THE FIRST PAGE OF THIS ORDER. ( %% % & %% % & %% % & %% % & /MUKUL KR. SHRAWAT ) ' ' ' ' /JUDICIAL MEMBER ( . .. . . .. . G.D. AGARWAL) !'# !'# !'# !'# /VICE-PRESIDENT