M/s H.K.B.KMotors Pvt. Ltd., Kolkata V. A.C.I.T.,Circle-5(2), Kolkata

ITA 2255/KOL/2019

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 8657 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 1 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-11-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 03-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANU BISWAS
• Keywords: Reasonable cause
• Section: 273B

Judgement Text

1 ITA No.2255/Kol/2019, M/s. H. K. B. K. Motors Pvt. Ltd., AY 2015-16 आयकर अपील य अधीकरण, यायपीठ –“B” कोलकाता, IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH: KOLKATA [Before Shri A. T. Varkey, Judicial Member & Shri Manoj Kumar Aggarwal, AM ] I.T.A. No. 2255/Kol/2019 Assessment Year: 2015-16 M/s. H. K. B. K. Motors Pvt. Ltd. (PAN: AACCH2179N) Vs. Assistant Commissioner of Income Tax, Circle-5(2), Kolkata. Appellant Respondent Date of Hearing (Virtual) 10.11.2021 Date of Pronouncement 12.11.2021 For the Appellant N o n e For the Respondent Smt. Ranu Biswas, Addl. CIT ORDER Per Shri A. T. Varkey, JM: This is an appeal preferred by the assessee against the order of Ld. CIT(A)- 2, Kolkata dated 20.06.2019 for AY 2015-16 confirming the penalty imposed by the AO u/s. 271(1)(b) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”). 2. None appeared for the assessee. However on a perusal of the grounds of appeal of the assessee it reveals that the assessee is aggrieved by the order passed by the Ld. CIT(A) confirming the penalty u/s. 271(1)(b) of the Act amounting to Rs.20,000/- as imposed by the AO. 3. Briefly stated facts are that the AO while passing the penalty order u/s. 271(1)(b) of the Act of Rs.20,000/-has held that there was non-compliance of notices, show cause notice and even penalty notice. In this respect, the assessee submitted that the Managing Director of the assessee company was taking care of and looking after his wife who was severely suffering from cancer and to substantiate that also filed copy of Medical treatment report of his wife. Therefore, the assessee prayed before the AO that proceeding initiated u/s. 271(1)(b) of the Act may be dropped. However, since there was non-compliance on the part of the assessee before him, the AO imposed penalty u/s. 271(1)(b) of the Act. Aggrieved, 2 ITA No.2255/Kol/2019, M/s. H. K. B. K. Motors Pvt. Ltd., AY 2015-16 assessee preferred appeal before the Ld. CIT(A), who confirmed the action of the AO. Aggrieved, assessee is in appeal before us. 4. We have virtually heard the Ld. Sr, DR and gone through the facts and circumstances of the case. We note that since there was non-compliance on the part of the assessee, the AO imposed penalty u/s. 271(1)(b) of the Act. The assessee pleaded that non-compliance before the AO was not deliberate but there was reasonable cause for not being present during assessment proceedings. The assessee submitted the cause for non-appearance/non-compliance was that the Managing Director of the assessee company was taking care and looking after his wife who was critical due to cancer and to substantiate the same also filed copy of Medical treatment report of his wife. However, the AO imposed penalty of Rs. 20,000/- u/s. 271(1)(b) of the Act. On appeal the Ld. CIT(A) confirmed the same. Even though there is no appearance before us from the side of assessee despite notice, after going through the records, we are inclined to dispose of the appeals ex parte qua the assessee. We note from the reasons cited by the assessee for non-compliance that M.D of Assessee Company taking care of his wife who was critically ill due to cancer, which fact was supported by medical evidence,. So we are of the opinion that the assessee was prevented by sufficient and reasonable cause for non- compliance on its part before the AO. Since there being a reasonable cause as per section 273B of the Act, we order the AO to delete the penalty imposed by him. 5. In the result, the appeal of the assessee is allowed. Order is pronounced in the open court on 12 th November, 2021. Sd/- Sd/- (Manoj Kumar Aggarwal) (A. T. Varkey) Accountant Member Judicial Member Dated: 12 th November, 2021 JD, Sr. PS 3 ITA No.2255/Kol/2019, M/s. H. K. B. K. Motors Pvt. Ltd., AY 2015-16 Copy of the order forwarded to: 1. Appellant- M/s. H. K. B. K. Motors Pvt. Ltd., 255, Canning Street, Brudham Housing Complex, Building No. 4, Flat No. 29, Kolkata-700 048. 2. Respondent – ACIT, Circle-5(2), Kolkata. 3. CIT(A)-2, Kolkata.(sent through e-mail) 4. CIT, Kolkata. 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Senior Private Secretary/DDO ITAT, Kolkata Benches, Kolkata