P.Shanthi, Coimbatore V. ACIT Central Circle 2, Coimbatore

ITA 2287/CHNY/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4976 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2012-2013
• Appeal Filed On: 02-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PAVITRAN KUMAR
• Assessee Lawyers: B RAMAKRISHNAN
• Keywords: Recovery proceedings; Reasonable cause; Set aside
• Section: 191

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , D B ENCH, CHENNAI, CAMP AT COIMBATORE ... , ! '#, $ #% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./I.T.A.NO.2287/CHNY/2018 ( / ASSESSMENT YEARS: 2012-2013) SMT. P.SHANTHI, NO.6-19A, J V AVENUE, THIRUMURUGAN NAGAR, VEERIYAMPALAYAM ROAD, KALAPATTI, COIMBATORE 641 048. VS THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE,-2, COIMBATORE PAN: CGQPS 8989E ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI B. RAMAKRISHNAN, C.A. /RESPONDENT BY : SHRI PAVITRAN KUMAR, JCIT /DATE OF HEARING : 06.02.2020 ! /DATE OF PRONOUNCEMENT : 06.02.2020 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-18, CHENNAI DA TED 24.11.2017 CONFIRMING PENALTY LEVIED U/S.221(1) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) AND PERTAINS TO THE ASSESSMENT YEAR 2 012-2013. 2 I.T.A. NO.2287/18 2. THERE IS A DELAY OF 191 DAYS IN FILING THE APPEA L BEFORE THIS TRIBUNAL. THE ASSESSEE HAS FILED PETITION FOR CONDONATION OF DELAY. HAVING HEARD THE LD. REPRESENTATIVE FOR THE ASSESSEE AND THE LD.DR, THIS TRIBUNAL FINDS THAT THERE WAS REASONABLE CAUSE ON THE PART OF T HE ASSESSEE F OR NOT FILING THE APPEAL BEFORE THE STIPULATED TIME. THEREFORE, THE DELAY O F 191 DAYS IS CONDONED AND THE APPEALS IS ADMITTED. 3. SHRI. B. RAMAKRISHNAN, LD. REPRESENTATIVE FOR T HE ASSESSEE SUBMITTED THAT THE ASSESSEE COULD NOT PAY THE TAXES LEVIED BY THE ASSESSING OFFICER WITHIN THE PRESCRIBED TIME DUE TO FINANCIAL CRUNCH . THE LD. REPRESENTATIVE FURTHER SUBMITTED THAT SINCE ASSESSEE HAS NO ASSE T OR BANK ACCOUNT, THE DEPARTMENT HAS NOT TAKEN ANY ACTION TO ATTACH THE S AME. THEREFORE, THERE WAS REASONABLE CAUSE AS PROVIDED IN SECOND PROVISO TO SECTION 221 OF THE ACT. HENCE LEVY OF PENALTY IS NOT JUSTIFIED AND ASSESSEE HAD ALSO PAID THE ENTIRE TAX ON 05.02.2020. 4. ON THE CONTRARY, SHRI PAVITRAN KUMAR, THE LD. DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE ASSESSING OFFICE R PASSED ORDER U/S.144 OF THE ACT FOR NON CO-OPERATION OF THE ASSESSEE. FROM THE VERY BEGINNING THE ASSESSEE HAS NOT CO-OPERATED WITH THE DEPARTMENT A ND TAXES WERE ALSO NOT PAID INSPITE OF REPEATED LETTERS. THEREFORE, THE A O WAS FORCED TO LEVY PENALTY U/S.221(1) OF THE ACT. 3 I.T.A. NO.2287/18 5. HAVING HEARD THE LD. REPRESENTATIVE AND THE LD. DEPARTMENTAL REPRESENTATIVE, THIS TRIBUNAL IS OF THE CONSIDE RED OPINION THAT THERE WAS JUSTIFIABLE CAUSE FOR NOT PAYING THE TAXES WITHIN T HE PRESCRIBED TIME. THE VERY FACT THAT THE DEPARTMENT HAS NOT INITIATED ANY PROC EEDINGS FOR RECOVERY OF TAX INDICATES THAT THE ASSESSEE HAS NO MEANS TO PAY THE TAX. TO BORN IN THE LAND OF DARIDRANARAYANAN AS THE POOR IS NOT A FAULT AT ALL. THEREFORE NO PENALTY COULD BE LEVIED IN VIEW OF SECOND PROVISIO TO SECTION 221 OF THE ACT. ACCORDINGLY, ORDERS OF BOTH THE AUTHORITIES BELOW ARE SET ASIDE AND THE PENALTY LEVIED BY THE AO AS CONFIRMED BY THE CIT ( A) IS DELETED. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESS EE IN ITA NO.2287/ CHNY/2018 FOR ASSESSMENT YEAR 2012-2013 IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 6TH FEBRUARY, 2020 AT CAMP AT COIMBATORE. SD/- SD/- ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER (... ) (N.R.S. GANESAN) / JUDICIAL MEMBER /COIMBATORE. /DATED, THE 6 TH FEBRUARY, 2020. KV #$ %&'& /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. * ( )/CIT(A) 4. * /CIT 5. &+, - /DR 6. ,./ /GF