M/s.Subscribers Chits (P) Ltd, Thrissur V. The ADCIT(TDS), Cochin

ITA 227/COCH/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96757 (ITAT-COCHIN)
• Duration Of Justice: 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2015
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 10-04-2015
• Court: TRIBUNAL
• Department Lawyers: K P GOPAKUMAR
• Assessee Lawyers: K P PRADEEP
• Keywords: Application of stay; Reasonable cause
• Section: 273B

Judgement Text

ITA NO 227 TO 22 9/C/2015 & SP 43 TO 45/C/2015 1 IN THE INCOME TAX APPEL L A TE T R IBUNAL COCHIN BENCH , COCHIN BEFORE S/SH RI B P JAIN , A M & G EORGE GEORGE.K , J M ITA NO S 227 TO 229/COCH/2015 . (ASST YEAR 2010 - 11 TO 2012 - 13 ) & STAY PETITITONS NO. 43 TO 45/COCH/2015 M/S SUBSCRIBERS CHITS(P) LTD PRESIDENCY C OMPLEX XX/338/13(1) PARAYIL LANE POTHOLE ROAD THRISSUR VS THE ADDL COMMISSIONER OF INCOME TAX (TDS) TRICHUR ( APPELLANT) (RESPONDENT) PAN NO. AAJCS6954M ASSESSEE BY SH K P PRADEEP REVENUE BY SHRI K P GOPAKUMAR, SR DR DATE OF HEARING 16 TH , OCT 2 015 DATE OF PRONOUNCEMENT 2 6 TH , OCT 2015 OR D ER PER GEORGE GEORGE. K. J M: THESE THREE APPEALS , AT THE INSTANCE OF THE ASSESSEE , ARE DIRECTED AGAINST THREE SEPARATE ORDERS OF THE CIT(A) ALL DATED 27.2.2015. THE RELEVANT ASSESSMENT YEARS ARE 20 10 - 11 TO 2012 - 13. THE ASSESSEE ALSO FLED STAY PETITIONS FOR SEEKING STAY OF DEMAND RAIS ED BY THE INCOME TAX DEPARTMENT. STAY PETITITONS NO. 43 TO 45/COCH/2015 2 WHEN THE STAY PETITIONS WERE TAKEN UP FOR HEARING, THE LD COUNSEL FOR THE ASSESSEE AS WELL AS THE LD DR SUBMITTED THAT THE APPEALS COULD BE TAKEN UP FOR ITA NO 227 TO 22 9/C/2015 & SP 43 TO 45/C/2015 2 HEARING AND HENCE, THESE STAY PETITIONS ARE DISMISSED, AS THE SAME HAS BECOME INFRUCTUOUS. IT IS ORDERED ACCORDINGLY. 3 IN THE RESULT, THE STAY PETITIONS FILED BY THE ASSESSEE ARE DISMISSED. ITA NOS 227 TO 229/COCH/2015. 4 NOW WE WILL TAKE UP THE APPEALS FILED BY THE ASSESSEE. SINCE COMMON ISSUE IS INVOLVED IN THESE APPEALS, THEY WERE HEARD TOGETHER AND DISPOSE OFF BY THIS CONSOLIDATED ORDER. 5 THE SOLITARY ISSUE THAT ARISES FOR OUR CONS IDERATION IS WHETHER THE CIT(A) IS JUSTIFIED IN CONFIRMING THE PENALTY IMPOSED U/S 271C OF THE ACT 1961. 6 THE BRIEF FACTS RELATING TO THE ISSUE ARE AS FOLLOWS: THE ASSESSEE IS A COMPANY ENGAGED IN CHITS BUSINESS. DURING THE RELEVANT ASSESSMENT YEARS, THE ASSESSEE HAD DEDUCTED TAX AT SOURCE AND DEPOSITED THE SAME TO THE GOVERNMENT ACCOUNT BELATEDLY. THE ADDITIONAL COMMISSIONER OF INCOME TAX (TDS) INITIATED PENALTY PROCEEDINGS AND LEVIED PENALTY U/S 271C OF THE ACT FOR A SUM OF RS. 8,21,660/ - ; RS 4,49 ,136/ - AND RS 7,29,113/ - FOR THE AYS 2010 - 11 TO 2012 - 13 RESPECTIVELY. 7 AGGRIEVED BY THE PENALTY IMPOSED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY. THE CIT(A) DISMISSED THE APPEALS OF THE ASSESSEE AND CONFIRMED THE PENALTY IMP OSED U/S 271C OF THE ACT. THE CIT(A) ITA NO 227 TO 22 9/C/2015 & SP 43 TO 45/C/2015 3 WAS OF THE VIEW THAT THE REASONS STATED BY THE ASSESSEE FOR BELATED DEPOSIT OF TAX DEDUCTED AT SOURCE ARE NOT A REASONABLE CAUSE AS MENTIONED U/S 273B OF THE ACT. THE CIT(A) HELD THAT WHEN THE TAX HAS BEEN DEDUCTED B Y THE ASSESSEE AND THE SAME HAS BEEN PAID BELATEDLY TO THE CENTRAL GOVERNMENT ACCOUNT, THE REASONABLE CAUSE MENTIONED U/S 273B OF THE ACT FOR WAIVER OR REDUCTION OF PENALTY, IS NOT APPLICABLE. FOR THE ABOVE PROPOSITION, THE CIT(A) RELIED ON THE JUD GMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF M/S US TECHNOLOGIES INTERNATIONAL (P) LTD REPORTED IN195 TAXMAN 323 AND ALSO THE ORDER OF THE COCHIN BENCH OF THE TRIBUNAL IN THE CASE OF M/S CLASSIC CONCEPT HOME INDIA (P) LTD IN ITA NO. 469 TO 472/COCH/2014. 8 THE ASSESSEE BEING AGGRIEVED IS IN APPEALS BEFORE US. THE LD COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE AUTHORITIES BELOW. THE LD DR , ON THE OTHER HAND , CONTENDED THAT THE ISSUE IN QUESTION IS SQUARELY COVERE D BY THE RECENT JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CLASSIC CONCEPTS HOME INDIA LTD IN ITA NO. 90 OF 2015 (JUDGMENT DATED 21.5.2015). 9 WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ADMITTEDLY, IN T HE INSTANT CASE IT IS A SITUATION WHERE THE ASSESSEE HAD DEDUCTED TAX AT SOURCE AND FAILED TO REMIT THE SAME TO THE CENTRAL GOVERNMENT ACCOUNT IN TIME. THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CLASSIC CONCEPTS ITA NO 227 TO 22 9/C/2015 & SP 43 TO 45/C/2015 4 HOME INDIA PVT LTD (SUPRA) HAD CAT EGORICALLY HELD THAT IN A CASE WHERE TAX HAS BEEN DEDUCTED BUT NOT PAID WITHIN THE TIME LIMIT PRESCRIBED UNDER THE LAW, REASONABLE CAUSE MENTIONED U/S 273B WOULD NOT COME TO THE RESCUE OF THE ASSESSEE. IN THE LIGHT OF THE JUDG MENT OF THE HONBLE JURISDICTIONAL HIGH COURT, CITED SUPRA, WE HOLD THAT THE CIT(A) IS JUSTIFIED IN CONFIRMING THE PENALTY IMPOSED U/S 271C OF THE ACT. IT IS ORDERED ACCORDINGLY. 10 IN THE RESULT, THE APPEALS AND THE STAY PETITIONS FILED BY THE ASSESSE E ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 2 6 TH DAY OF OCT 2015 . SD/ - SD/ - ( B P JAIN ) ( GEORGE GEORGE K ) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN: DATED 26 TH , OCT 2015 RAJ* ITA NO 227 TO 22 9/C/2015 & SP 43 TO 45/C/2015 5 COPY TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT , 5 . DR 6 . GUARD FILE BY ORDER ASSISTANT REGISTRAR ITAT, COCHIN