Ratnamani Metals & Tubes Limited, Ahmedabad V. The Dy.CIT, TDS Circle, Ahmedabad

ITA 2259/AHD/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94764 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 20-10-2015
• Assessment Year: 2013-2014
• Appeal Filed On: 30-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L CHANDEL SR DR
• Assessee Lawyers: P D SHAH
• Section: 133A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD .. , ( .) , BEFORE SHRI G.D. AGARWAL,VICE PRESIDENT (AZ) AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ I.T.A. NO.2259/AHD/2015 ( / ASSESSMENT YEAR : 2013-14) RATNAMANI METALS & TUBES LTD. MEHTA LODHA & CO. CHARTERED ACCOUNTANTS 105, SAKAR-I, ASHRAM ROAD AHMEDABAD-38 009 / VS. THE DY.CIT TDS CIRCLE AHMEDABAD- 380 009 % & ./ ./ PAN/GIR NO. : AABCR 1742 E ( %( / APPELLANT ) .. ( )*%( / RESPONDENT ) %( + / APPELLANT BY : SHRI P.D.SHAH, AR )*%( , + / RESPONDENT BY : SHRI S.L. CHANDEL, SR.DR -. , /& / DATE OF HEARING 20/10/2015 0123 , /& / DATE OF PRONOUNCEMENT 30/11/2015 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE LD.COMMISSIONER OF INCOME TAX(APPEALS)-8, AHMEDABAD [CIT(A) IN SHORT] DATED 05/06/2015 PERTAINING TO ASSESSMENT Y EAR (AY) 2013-14. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF AP PEAL:- ITA NO. 2259/AH D/2015 RATNAMANI METALS & TUBES LTD. VS. DCIT ASST.YEAR 2013-14 - 2 - 1. THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEA LS) HAS ERRED IN LAW AND FACTS BY CONFIRMING PENALTY OF RS.10,000 /- LEVIED UNDER SECTION 271H OF THE ACT AND THEREFORE THE LEARNED A SSESSING OFFICE BE DIRECTED TO DELETE SAID PENALTY DEMAND. 2. THAT THE APPELLANT CRAVES LIBERTY TO ADD, AMEND, AL TER AND DELETE ANY GROUNDS OF APPEAL BEFORE THE FINAL HEARING. 2. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE-COMPA NY IS IN THE BUSINESS OF MANUFACTURING OF TUBES & PIPES IN STAINLESS STEE L, EXOTIC MATERIAL AND CARBON STEEL PIPES. A SURVEY U/S.133A OF THE INCOM E TAX ACT,1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS CARRIED OUT ON 13/08/2013 AT THE BUSINESS PREMISES OF THE ASSESSEE. DURING THE COUR SE OF SURVEY, IT WAS FOUND THAT THE ASSESSEE HAD DEDUCTED TDS OF RS.13,0 1,388/- BUT HAS NOT DEPOSITED THE SAME IN GOVERNMENT ACCOUNT. IT WAS A LSO FOUND THAT THE ASSESSEE HAS AGAIN FAILED TO DEDUCT TDS U/S.192B OF RS.5,71,584/-. IT WAS ALSO SEEN THAT THE ASSESSEE HAD NOT EVEN FILED THE QUARTERLY STATEMENTS AND WHEN HIS STATEMENT WAS RECORDED ON OATH U/S.131 OF THE ACT ON 12/12/2013 AND 09/01/2013 DURING THE COURSE OF POST SURVEY PROCEEDINGS. ORDER U/S.201(1)/201(1A) OF THE ACT WAS PASSED ON 3 1/01/2014 IN THIS REGARD. PENALTY PROCEEDING U/S.271H R.W.S. 274 OF THE ACT WAS INITIATED BY ISSUING A SHOW-CAUSE NOTICE ON 31/01/2014 REQUIR ING THE ASSESSEE TO EXPLAIN FOR NOT FILING THE TDS RETURN. A FRESH O PPORTUNITY WAS GIVEN ON ACCOUNT OF CHANGE IN INCUMBENT BY ISSUE OF LETTER D ATED 30/06/2014 AND ASSESSEE HAD NOT FILED ANY REPLY IN THIS REGARD. F INALLY, A PENALTY OF RS.10,000/- U/S.271H OF THE ACT WAS IMPOSED VIDE OR DER DATED 23/07/2014 BY THE AO. THE ASSESSEE BEING AGGRIEVE D BY THE PENALTY ITA NO. 2259/AH D/2015 RATNAMANI METALS & TUBES LTD. VS. DCIT ASST.YEAR 2013-14 - 3 - ORDER, PREFERRED AN APPEAL BEFORE THE LD.CIT(A), WH O AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE DISMISSED THE APPEA L. AGGRIEVED BY THE ORDER OF THE LD.CIT(A), NOW THE ASSESSEE IS FURTHER IN APPEAL BEFORE US. 3. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT T HE AUTHORITIES BELOW WERE NOT JUSTIFIED IN IMPOSING THE PENALTY U/S.271H OF THE ACT. 3.1. ON THE OTHER HAND, LD.SR.DR SUPPORTED THE ORDE RS OF THE AUTHORITIES BELOW. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. WE FIND THAT THE LD.CIT(A) HAS DECIDED THE ISSUE BY OBSERVING AS UNDER:- 3. THE SUBMISSIONS ARE CONSIDERED. THE PENALTY WAS LEVIED UPON THE APPELLANT IN PURSUANCE TO SURVEY UNDER SECTION 133A WHERE IT WAS FOUND THAT APPELLANT HAD NOT FURNISHED DEDUCTEE WISE BREAKUP OF TDS WHERE NO DEDUCTION WAS MADE ON ACCOUNT OF PA YMENT BELOW THRESHOLD LIMIT SPECIFIED IN THE INCOME TAX A CT. APPELLANT HAD FAILED TO FURNISH THE PAYEES' INFORMATION WHICH WAS REQUIRED TO BE FURNISHED. NO REASON HAS BEEN SHOWN BY THE APPEL LANT FOR THE SAID DEFAULT EXCEPT SAYING THAT THERE IS NO REVENUE LOSS. THE FURNISHING OF THE INFORMATION HAS BEEN MADE OBLIGAT ORY SO THAT THE DEPARTMENT CAN TAKE STEPS TO BRING SUCH PAYEES IN T HE TAX NET, IF THEY DO NOT FILE THEIR INCOME TAX RETURN AND ALSO T O VERIFY THEIR TAXABLE INCOME IN THE RETURNS FILED. THIS HELPS THE DEPT IN NON- OBTRUSIVE AND EFFICIENT TAX ADMINISTRATION. THUS IT CANNOT BE SAID THAT NO PREJUDICE IS CAUSED TO THE DEPT BY THE ACT OF APPELLANT OF ITA NO. 2259/AH D/2015 RATNAMANI METALS & TUBES LTD. VS. DCIT ASST.YEAR 2013-14 - 4 - CONCEALING THE INFORMATION REGARDING THE PAYEES FOR WHOM NO TDS WAS DONE. IN VIEW OF THE ABOVE, 1 HAVE NO HESITATIO N CONFIRMING THE PENALTY LEVIED BY THE ASSESSING OFFICER. THE AP PEAL IS DISMISSED. 5. THERE IS NO DISPUTE WITH REGARD TO THE FACT THAT THE ASSESSEE WAS REQUIRED TO FURNISH A STATEMENT OF TAX DEDUCTED AT SOURCE WITHIN THE PRESCRIBED TIME IN THE MANNER PRESCRIBED UNDER THE RELEVANT PROVISION OF LAW. THE ONLY EXPLANATION OFFERED BY THE ASSESSEE IS THAT STATEMENT WAS FURNISHED. BUT THE ONLY LAPSE WAS THAT PARTY-WISE INFORMATION WAS NOT FURNISHED DUE TO MISTAKE IN UNDERSTANDING THE LAW. AFTER CONSIDERING THE TOTALITY OF FACTS OF THE CASE, WE ARE OF THE CONSID ERED VIEW THAT THE ASSESSEE OUGHT TO HAVE BEEN VIGILANT IN COMPLYING W ITH THE PROVISIONS OF LAW AND DEEM IT PROPER THAT UNDER THE FACTS OF THE PRESENT CASE, THE AUTHORITIES BELOW OUGHT TO HAVE TAKEN A LIBERAL VIE W. ACCORDINGLY, WE HEREBY DIRECT THE AO TO DELETE THE PENALTY. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE COURT ON MONDAY, THE 30 TH DAY OF NOVEMBER, 2015 AT AHMEDABAD. ( .. ) ( ) ( . ) ( G.D. AGARWAL ) ( KUL BHARAT ) VICE PRESIDENT (AZ) JUDICIAL MEMBER AHMEDABAD; DATED / 11 /2015 6/..-, .-../ T.C. NAIR, SR. PS ITA NO. 2259/AH D/2015 RATNAMANI METALS & TUBES LTD. VS. DCIT ASST.YEAR 2013-14 - 5 - !'#$%&' &$ / COPY OF THE ORDER FORWARDED TO : 1. %( / THE APPELLANT 2. )*%( / THE RESPONDENT. 3. 789 : / CONCERNED CIT 4. : ( ) / THE CIT(A)-8, AHMEDABAD 5. ;< )-89 , / 893 , 7 / DR, ITAT, AHMEDABAD 6. <= >. / GUARD FILE. ! / BY ORDER, *; ) //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 2.XI.15. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER .. 3. OTHER MEMBER... 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.30.11.15 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 30.11.15 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER