Appeal details
Counselvise Citation
[2016] 133 COUNSELVISE.COM (IT) 9488 (ITAT-AHMEDABAD)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
6 month(s) 18 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
24-02-2016
Appeal Filed By
Assessee
Order Result
Dismissed
Bench Allotted
SMC
Next Hearing Date
12-06-2017
Assessment Year
2010-2011
Appeal Filed On
06-08-2015
Judgement Text
, , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI B.P. JAIN, ACCOUNTANT MEMBER ./ ITA.NO.2341/AHD/2015 / ASSTT. YEAR: 2010-2011 SHREE ANIL PURSHOTTAMBHAI PATEL C/O. VALLABH PESTICIDES LTD. P.B. NO.30 CYTO COMPOUND VITTHAL UDYOGNAGAR 388 121 DIST. ANAND. PAN : AINPP 2734 K VS JCIT, ANAND RANGE ANAND. ! / (APPELLANT) '# ! / (RESPONDENT) ASSESSEE BY : SHRI A.C. BRAHMAKSHATRIYA REVENUE BY : SHRI SANTOSH KARNAMI, SR.DR / DATE OF HEARING : 24/02/2016 / DATE OF PRONOUNCEMENT: 24/02/2016 $%/ O R D E R THIS APPEAL OF THE ASSESSEE AROSE FROM ORDER OF THE LD.CIT(A)-4, VADODARA DATED 5.5.2015 FOR THE ASSTT.YEAR 2010-201 1. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. IN LAW, ON FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE APPELLATE ORDER PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-4, VADODARA IS AGAINST NATURAL JUSTICE, BAD IN LAW AND DESERVES TO BE CANCELLED. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE, THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-4, VADODARA HA S GROSSLY ERRED IN NOT CONFIRMING THE PENALTY U/S.271E OF THE ACT. THE LD. A.O. MAY KINDLY BE DIRECTED TO DELETE THE PENALTY OF RS.2,50,000/- LEV IED U/S.271E R.W.S. 269T OF THE ACT. ITA NO.2341/AHD/2015 2 3. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR WITHDRAW ANY GROUND/S OF APPEAL ON OR BEFORE HEARING OF THE APPE AL. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HA S AVAILED A LOAN OF RS.5.00LAKHS FROM HIS EMPLOYER, SHRI ASHOK BABULAL SHAH THROUGH ACCOUNT PAYEE CHEQUE. OUT OF THE TOTAL BORROWING OF RS.5.0 0 LAKHS, A SUM OF RS.2.50 LAKHS WAS REPAID IN CASH DURING THE YEAR UNDER CONS IDERATION. IT WAS EXPLAINED THAT THE ASSESSEE WAS NOT AWARE OF PROVIS IONS OF SECTION 269T OF THE ACT, AND UNDER BONA FIDE BELIEF THE ASSESSEE HAS REPAID THE LOAN OF RS.2.50 LAKHS IN CASH. EXPLANATION OF THE ASSESSEE WAS NOT ACCEPTED BY THE AO AND ACCORDINGLY, PENALTY UNDER SECTION 271E OF THE ACT AMOUNTING TO RS.2.50 LAKHS WAS LEVIED, WHICH WAS CONFIRMED BY THE LD.CIT (A). 4. THE LD.AR REITERATED THE SUBMISSIONS, AS STATED BEFORE BOTH THE AUTHORITIES BELOW. 5. THE LD.DR, ON THE OTHER HAND, ARGUED THAT THE AS SESSEE IS MAINTAINING THE ACCOUNT OF THE EMPLOYER AND REGULARLY ASSESSED TO TAX. HE SUPPOSED TO HAVE GOOD KNOWLEDGE OF LAW, AND THEREFORE, FOR SUCH A PERSON, IGNORANCE OF LAW, IS NOT AN EXCUSE. THE LD.AR HAS NOT GIVEN AN Y REASONABLE CAUSE UNDER SECTION 273B OF THE ACT, AND THEREFORE, HE PRAYED T O CONFIRM THE PENALTY LEVIED UNDER SECTION 271E OF THE ACT. 6. I HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE F ACTS ON RECORD. THE UNDISPUTED FACTS OF THE PRESENT CASE ARE THAT THE A SSESSEE HAS REPAID THE LOAN BY CASH OF RS.2.50 LAKHS TO HIS EMPLOYER SHRI ASHOK BABULAL SHAH. EXPLANATION GIVEN IS THAT THE ASSESSEE DOES NOT HAV E KNOWLEDGE OF LAW, AND IT WAS IN AN EMERGENCY SITUATION THAT THE MONEY HAD TO BE PAID IN CASH. WHAT WAS THE EMERGENCY THAT ONLY CASH HAD TO BE PAID TO THE EMPLOYER, HAS NOT BEEN ITA NO.2341/AHD/2015 3 BROUGHT ON RECORD OR HAS NOT BEEN EXPLAINED BEFORE ME OR BEFORE ANY OTHER AUTHORITIES BELOW. AS REGARDS PERSON, WHO IS MAINT AINING THE ACCOUNTS OF THE ASSESSEE, CANNOT BE SAID TO BE IGNORANT OF LAW. OT HERWISE ALSO NO PERSON, WHO IS IGNORANT OF LAW CANNOT BE EXCUSED ONLY ON THIS P RETEXT. AS PER SECTION 273B, NO REASONABLE CAUSE HAS BEEN ESTABLISHED BY T HE ASSESSEE BEFORE ANY OF THE AUTHORITIES BELOW OR BEFORE ME. IN THE CIRCUMS TANCES AND THE FACTS OF THE CASE, I FIND NO INFIRMITY IN THE ORDER OF THE LD.CI T(A), WHO HAS RIGHTLY CONFIRMED THE ACTION OF THE AO IN LEVYING THE PENAL TY UNDER SECTION 271E OF THE ACT. ALL THE GROUNDS OF APPEAL OF THE ASSESSEE ARE, THEREFORE, DISMISSED. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE COURT ON 24 TH FEBRUARY, 2016 AT AHMEDABAD. SD/- ( B.P. JAIN ) ACCOUNTANT MEMBER
