M/s.Deluxe Roadlines Pvt.Ltd., Bangalore V. Assistant Commissioner of Income-Tax, Bangalore

ITA 2253/BANG/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 0166 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 8 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 18-07-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 19-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR P V PRADEEP KUMAR
• Assessee Lawyers: V SRINIVASAN
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, BENGALURU BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER I TA NO S . 2 252 TO 2255 / BANG/2 0 1 6 (ASSESSMENT YEARS: 2010 11 & 2011-12) M/S DELUXE R OADLINES PVT. LTD . DELUXE HOUSE, #35/1, 1 ST FLOOR, M T B ROAD, NEAR MINERVA CIRCLE, BANGALORE - 560002 PAN: AAACD5875F APPELLANT VS. ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE 2(1) (2), BENGALURU. RESPONDENT A SSESSEE BY : SHRI V . SRINIVASAN , ADVOCATE. RE VENUE BY : DR. P. V. PRADEEP KUMAR, ADDL. CIT (DR) DATE OF HEARING : 23 /07/2018 DATE OF PRONOUNCEMENT : 14 /09/2018 O R D E R PER BENCH: OUT OF THIS BUNCH OF FOUR APPEALS, ALL FILED BY TH E SAME ASSESSEE, TWO APPEALS ARE IN RESPECT OF PENALTY IMPOSED U/S 271A AND THE REMAINING TWO APPEALS ARE IN RESPECT OF PENALTY IMPOSED U/S 271B. THESE APPEALS ARE DIRECTED AGAINST FOUR SEPARATE ORDERS OF THE LD.CI T (A) 7, BENGALURU ALL DATED 23.09.2016 FOR A. YS. 2010 11 & 2011 12. ALL THESE APPEALS WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS CO MMON ORDER FOR THE SAKE OF CONVENIENCE. 2. AS PER THE GROUNDS RAISED BY THE ASSESSEE IN THE SE FOUR APPEALS, THE ASSESSEE HAS THE GRIEVANCE FOR CONFIRMING THE PENAL TY OF RS. 25,000/- AND ITA NOS. 2252 TO 2255/BANG/2016 PAGE 2 OF 3 RS. 150,000/- U/S 271A & SECTION 271B RESPECTIVELY IN A. YS. 2010 11 & 2011 12. 3. BRIEF FACTS ARE THAT THE AO NOTICED THAT THE ASS ESSEE HAS NEITHER MAINTAINED BOOKS OF ACCOUNTS AS REQUIRED U/S 44AA NOR GOT THE BOOKS AUDITED AS REQUIRED U/S 44AB IN THESE TWO YEARS. THE AO IMPOSE D PENALTY OF RS. 25,000/- U/S 271A IN EACH OF BOTH YEARS AND HE ALSO IMPOSED PENALTY U/S 271B IN EACH OF BOTH YEARS. LEARNED CIT (A) CONFIRM ED BOTH PENALTIES IN BOTH YEARS AND THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4. THE LD.AR OF THE ASSESSEE PLACED RELIANCE ON A J UDGMENT OF HONBLE ALLAHABAD HIGH COURT RENDERED IN THE CASE OF CIT VS . BISAULI TRACTORS AS REPORTED IN 299 ITR 219. HE POINTED OUT THAT IN THI S CASE, HONBLE ALLAHABAD HIGH COURT HELD THAT SEPARATE PENALTY HAS BEEN PROV IDED FOR NON- MAINTENANCE OF ACCOUNTS, I.E., UNDER S. 271A AND FO R NOT GETTING THE ACCOUNTS AUDITED AND NOT FURNISHING THE AUDIT REPOR T I.E., UNDER S. 271B. IN THE PRESENT CASE, THE AO DID NOT IMPOSE PENALTY UND ER S. 271A AND INSTEAD PROCEEDED TO IMPOSE PENALTY UNDER S. 271B. IF A PER SON HAS NOT MAINTAINED THE ACCOUNTS BOOK OR ANY ACCOUNTS THE QUESTION OF I TS AUDIT DOES NOT ARISE. IN SUCH AN EVENT THE IMPOSITION OF PENALTY UNDER TH E PROVISION CONTAINED IN S. 271A FOR THE ALLEGED NON-COMPLIANCE OF S. 44AA M AY ARISE BUT THE PROVISIONS OF S. 44AB DO NOT GET VIOLATED IN CASE W HERE THE ACCOUNTS HAVE NOT BEEN MAINTAINED AT ALL AND, THEREFORE, PENAL PR OVISIONS OF S. 271B WOULD NOT APPLY. HE SUBMITTED THAT AS PER THIS JUDGMENT, PENALTY U/S 271B IS NOT SUSTAINABLE. LEARNED DR OF THE REVENUE SUPPORTED TH E ORDER OF THE LD.CIT(A). 5. WE HAVE CONSIDERED RIVAL SUBMISSIONS. RESPECTFU LLY FOLLOWING THIS JUDGMENT OF HONBLE ALLAHABAD HIGH COURT RENDERED IN THE CAS E OF CIT VS. BISAULI TRACTORS (SUPRA), WE CONFIRM THE PENALTY IMPOSED U/ S 271A IN BOTH YEARS BUT DELETE THE PENALTY IMPOSED U/S 271B IN BOTH YEA RS. ITA NOS. 2252 TO 2255/BANG/2016 PAGE 3 OF 3 6. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE REGARDING PENALTY U/S 271A ARE DISMISSED BUT BOTH THE APPEALS OF THE ASSESSEE REGARDING PENALTY U/S 271B ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH SEPTEMBER, 2018 SD/- SD/- (SUNIL KUMAR YADAV) (A.K. GARODIA) JUDICIAL MEMBER ACCOUNTANT M EMBER PLACE : BENGALURU. D A T E D : 14/09/2018 *MS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME-TAX APPELLATE TRIBUNAL BANGALORE