Inder Hotels Pvt. Ltd., Ahmedabad V. The Addl. CIT, TDS, Ahmedabad

ITA 2302/AHD/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9831 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 11-12-2015
• Assessment Year: 2012-2013
• Appeal Filed On: 04-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P D SHAH
• Keywords: Reasonable cause

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ./ ITA NO. 2302/AHD/2015 / ASSESSMENT YEAR: 2012-13 INDER HOTELS PRIVATE LIMITED C/O. MEHTA LODHA & CO., CHARTERED ACCOUNTANTS, 105, SAKAR-I, ASHRAM ROAD, AHMEDABAD .. APPELLANT PAN : AAACI 3674 H VS ADDL. COMMISSIONER OF INCOME-TAX TDS RANGE, AHMEDABAD .. RESPONDENT ASSESSEE(S) BY : SHRI P . D. SHAH , AR REVENUE BY : SHRI JAMES KURIAN , SR - DR / DATE OF HEARING 11/12/2015 / DATE OF PRONOUNCEMENT 19/01/2016 / O R D E R PER SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-8 , AHMEDABAD DATED 11.06.2015 FOR ASSESSMENT YEAR 2012 -13, ON THE FOLLOWING GROUNDS:- THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL S) HAS ERRED IN LAW AND FACTS BY CONFIRMING PENALTY OF RS.2,10,200/- LEVIED UNDER SECTION 272A(2)(K) OF TH E ACT AND THEREFORE THE LEARNED ASSESSING OFFICER BE DIRE CTED TO ITA NO. 2302/AHD/2015 INDER HOTELS PVT LTD VS. ACIT AY 2012-13 - 2 - DELETE THE PENALTY OF RS.2,10,200/- LEVIED UNDER SE CTION 272A(2)(K) OF THE ACT. 2. AT THE TIME OF HEARING, THE LD. AUTHORIZED REPRE SENTATIVE FOR THE ASSESSEE POINTED OUT THAT SIMILAR ISSUE ARO SE BEFORE THE AHMEDABAD D BENCH OF THE TRIBUNAL IN ASSESSEES O WN CASE FOR ASSESSMENT YEAR 2011-12 IN ITA NO.2573/AHD/2015 , WHEREIN THE SAME WAS DECIDED IN FAVOUR OF THE ASSES SEE, FOLLOWING THE DECISION OF CO-ORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF ITO VS. THE ORIENTAL INSURANCE COMPANY LTD IN ITA NO.2906/AHD/2009 FOR AY 2007-08, BY OBSERVING AS UN DER:- 2. AT THE TIME OF HEARING, THE LD. AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE POINTED OUT THAT SI MILAR ISSUE AROSE BEFORE THE AHMEDABAD C BENCH OF THE TRIBUNAL IN THE CASE OF ITO VS. THE ORIENTAL INSURA NCE COMPANY LTD. IN ITA NO. 2906/AHD/2009 FOR ASSESSMEN T YEAR 2007-08, WHEREIN THE SAME WAS DECIDED IN FAVOU R OF THE ASSESSEE BY OBSERVING AS UNDER:- 5. WE HAVE HEARD THE RIVAL PARTIES AND PERUSED THE MATERIAL ON RECORD. IN OUR CONSIDERED VIEW THE LD. CIT(A) WAS JUSTIFIED IN DELETING THE IMPUGNED PENALTY. HE HAS GIVEN COGENT REASONS WHILE DELETING THE PENALTY. THERE IS NO DISPUTE ABOUT THE FACT THAT THE APPELLANT HAS DEPOSITED MOST OF AMOUNT OF THE TAX DEDUCTED AT SOURCE UNDER THE PROVISIONS OF THE ACT WITH THE GOVERNMENT WITHIN STIPULATED TIME. HOWEVER, WHERE THERE IS DELAY IN SUCH DEPOSITS, SAME HAS BEEN DEPOSITED WITH INTEREST. FURTHER, THE TAX DEDUCTED AT SOURCE FOR THE RELEVANT PERIOD WAS DEPOSITED BY THE APPELLANT ALONG WITH CHARGEABLE INTEREST BEFORE THE ISSUE OF SHOW CAUSE NOTICE FOR THE PENALTY UNDER REFERENCE. ITA NO. 2302/AHD/2015 INDER HOTELS PVT LTD VS. ACIT AY 2012-13 - 3 - THE DEFAULT FOR WHICH PENALTY HAS BEEN LEVIED BY THE AO RELATES TO LATE SUBMISSION OF FORM NO.24Q AND 26Q OF THE IT RULES. THE ASSESSEES BELIEF CONSTITUTES A REASONABLE CAUSE WITHIN THE MEANING OF SEC.273B OF THE ACT. SEC.273B OF THE ACT LAYS DOWN THAT THE PENALTY SHALL NOT BE IMPOSED IN RESPECT OF A DEFAULT RELATING TO THE PROVISIONS MENTIONED THEREIN IF THE PERSON OR THE ASSESSEE CONCERNED CAN SHOW THAT THERE WAS A REASONABLE CAUSE FOR DEFAULT IN QUESTION. SECTION 272A(2)(K) FALLS WITHIN THE AMBIT OF SEC.273B OF THE ACT. IT I S OBSERVED THAT THE AO HAS LEVIED THE PENALTY IN A ROUTINE MANNER WITHOUT BRINGING THE FACTS ON RECORD TO ESTABLISH THAT THE APPELLANT COMMITTED THE DEFAULT WITHOUT A REASONABLE CAUSE. THE LD. CIT(A) HAS RELIED ON THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF HINDUSTAN STEEL LTD. VS. STATE OF ORISSA (SUPRA) AND HONBLE GUJARAT HIGH COURT IN THE CASE OF HARSIDDH CONSTRUCTION (P) LTD. VS. CIT WHICH ARE SQUARELY APPLICABLE TO THE FACTS OF ASSESSEES CASE. WE FIND NO INFIRMITY IN THE ORDER OF LD. CIT(A) AND UPHOLD THE SAME. THE GROUND RAISED BY THE REVENUE IS DISMISSED. 2.1. NOTHING CONTRARY WAS BROUGHT TO OUR KNOWLEDGE, SO FOLLOWING THE AFORESAID DECISION AND REASONING, WE ARE NOT INCLINED TO CONCUR WITH THE FINDINGS OF THE CIT(A) WHO HAS CONFIRMED THE PENALTY U/S 272A(2)(K) OF RS.1,92,000 /-. SAME IS DIRECTED TO BE DELETED FOLLOWING THE REASON ING GIVEN BY THE CO-ORDINATE BENCH OF THE TRIBUNAL IN T HE CASE OF THE ORIENTAL INSURANCE COMPANY LTD (SUPRA). ASSESSING OFFICER IS DIRECTED ACCORDINGLY. 3. AS A RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. 2.1. WE, THEREFORE, RESPECTFULLY FOLLOWING THE AFOR ESAID DECISION OF CO-ORDINATE BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR AY 2011-12 IN ITA NO.2573/AHD/2015, DELETE THE PEN ALTY OF ITA NO. 2302/AHD/2015 INDER HOTELS PVT LTD VS. ACIT AY 2012-13 - 4 - RS.2,10,200/- LEVIED BY THE ASSESSING OFFICER U/S 2 72A(2)(K) OF THE ACT. 3. AS A RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON19TH OF JANUARY, 20 16 AT AHMEDABAD. SD/- SD/- ( RAJESH KUMAR ) ACCOUNTANT MEMBER ( SHAILENDRA KUMAR YADAV ) JUDICIAL MEMBER AHMEDABAD; DATED /01/2016 *BT !'# $#! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A), 5. !'# $$ , , / DR, ITAT, AHMEDABAD 6. #() / GUARD FILE. / BY ORDER, //TRUE COPY// / (DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD