Apoorya Health Services Pvt.Ltd., Visakhapatnam V. The CIT(A)-1, Guntur

ITA 236/VIZ/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 6739 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 25-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S RAVI SHANKAR NARAYANAN
• Assessee Lawyers: C R HEMANTHA KUMAR
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 236 / VIZ /201 7 (ASST. YEAR : 20 11 - 1 2 ) AP O ORVA HEALTH SERVICES PVT. LTD., 50 - 17 - 62, RAJENDRA NAGAR, VISAKHAPATNAM. V . J CIT, RANGE - 6 (TDS) , VISAKHAPATNAM. PAN NO. AADCA 0166 H (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C.R. HEMANTHA KUMAR C A . DEPARTMENT BY : SHRI S. RAVI SHANKAR NARAYANAN SR. DR DATE OF HEARING : 30 / 0 8 /201 7 . DATE OF PRONOUNCEMENT : 31 / 0 8 /201 7 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER TH IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 1 , GUNTUR , DATED 19 / 12 /201 6 FOR THE ASSESSMENT YEAR 20 11 - 12 . 2. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS A PRIVATE LIMITE D COMPANY RUNNING A NURSING HOM E . FOR THE ASSESSMENT YEAR UNDER CONSIDERATION , THE ASSESSEE HAS DEDUCTED TDS FROM THE RENT AND PROFESSIONAL FEES CHARGES PAID. THE ASSESSEE IS REQUIRED TO FILE THE QUARTERLY RETURN ; THE FIRST QUARTER OF ASSESSMENT YEAR 2011 - 12 BY 15/07/2010 , WHEREAS SAME WAS FILED ON 16/07/2011 . THERE IS A DELAY 2 ITA NO. 236/VIZ/2017 ( AP O ORVA HEALTH SERVICES P. LTD. ) OF 366 DAYS. THE JOINT COMMISSIONER OF INCOME TAX (JCIT) , R ANGE - 6 (TDS) HAS ISSUED A SHOW - CAUSE NOTICE ON 23/04/2013 ASKING THE ASSESSEE AS TO WHY PENALTY UNDER SECTION 272A(2)(K) SHOULD NOT BE LEVIED FOR NON - FILING OF THE QUARTERLY RETURN IN TIME. THE ASSESSEE HAS S UBMITTED BEFORE THE JCIT THAT THE TRANSMISSION OF FILING OF THE RETURNS FROM MANUAL TO ELECTRONIC FILING , CAUSED A LOT OF PROBLEMS. IT IS ALSO EXPLAINED THAT HE DID NOT HAVE STAFF , WHO ARE CONVERSANT WITH THE SOFTWARE AND ITS OPERATION. FURTHER IT W AS EXPLAINED THAT TAX DEDUCTED AT SOURCE WAS PAID IN TIME IN GOVERNMENT ACCOUNT, AS SUCH , THERE IS NO LOSS TO THE GOVERNMENT . THE JCIT AFTER CONSIDERING THE EXPLANATION OF THE ASSESSEE OBSERVED THAT THE INCOME TAX DEPARTMENT CONDUCTED AWARENESS PROGRAMMES / BROCH UR ES / PAMPHLETS AND PROVIDED ONLINE ASSISTANCE ETC., HENCE, THE REASONS OF TRANSMISSION FROM MANUAL TO E FILING CAUSED LOT OF PROBLEMS , CANNOT BE ACCEPTED AND LE VIED PENALTY OF 36,600/ - . 3 . ON APPEAL , LD. CIT(A) CONFIRMED THE ORDER OF THE JCIT. 4 . ON BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE TRIBUNAL. 5. LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE HAS SUBMITTED THAT TDS DEDUCTED AND PAID TO THE GOVERNMENT ACCOUNT IN TIME, AS SUCH THERE IS NO LOSS TO THE GOVERNMENT. SO FAR AS DELAY IN FILING THE QUARTERLY RETURNS, IT IS SUBMITTED THAT TRANSMISSION OF FILING OF RETURNS FROM MANUAL TO ELECTRONIC FILING CAUSED A LOT OF PROBLEMS AND 3 ITA NO. 236/VIZ/2017 ( AP O ORVA HEALTH SERVICES P. LTD. ) ALSO TECHNICAL EXPERTS ARE NOT AVAILABLE WITH HIM. THEREFORE, THERE IS A DEL AY IN FILING THE QUARTERLY RETURNS AND SUBMITTED THAT PENALTY MAY BE DELETED. 6 . ON THE OTHER HAND, DEPARTMENTAL REPRESENTATIVE HAS SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 7 . WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIAL AVAILABLE ON RECORD AND ORDERS OF THE AUTHORITIES BELOW. 8 . THE ASSESSEE HAS DEDUCTED TDS ON RENT AND PROFESSIONAL CHARGES AND DEPOSITED TO THE GOVERNMENT ACCOUNT IN TIME. THE ASSESSEE REQUIRED TO FILE FIRST QUARTER RETURN FOR THE ASSESSMENT YEAR 2011 - 12 BY 15/07/2010, WHEREAS THE SAME WAS FILED ON 16/07/2011 , THEREBY THERE IS A DELAY OF 366 DAYS. IN RESPONSE TO THE NOTICE ISSUED BY THE JCIT, IT IS SUBMITTED THAT TDS DEDUCTED HAS BEEN PAID TO THE GOVERNMENT ACCOUNT IN TIME, THE DELAY IS CAUSED DUE TO TRANSMISSION OF FILING OF RETURNS FROM M ANUAL TO ELECTRONIC FILING AND ALSO SUBMITTED THAT THERE ARE NO TECHNICAL EXPERTS AVAILABLE WITH THE ASSESSEE TO OPERATE THE COMPUTER AND SUBMITTED THAT PENALTY PROCEEDINGS MAY BE DROPPED. HOWEVER, THE JCIT IS OF THE OPINION THAT THE DEPARTM ENT HAS CONDUCTED AWARENESS PROGRAMMES , CIRCULATED BROCHURES/PAMPHLETS AND ALSO PROVIDED ONLINE ASSISTANCE , HE REJECTED THE EXPLANATION GIVEN BY THE ASSESSEE, THE SAME IS CONFIRMED BY THE LD. CIT(A). WE FIND THAT THE ASSESSEE HAS EXPLAINED THAT DUE TO TRA NSMISSION OF FILING OF THE RETURNS FROM MANUALLY TO ELECTRONIC CAUSED A LOT OF PROBLEMS AND HE HAS ALSO 4 ITA NO. 236/VIZ/2017 ( AP O ORVA HEALTH SERVICES P. LTD. ) NOT HAVING TECHNICAL EXPERTS. UNDER THOSE CIRCUMSTANCES, HE IS UNABLE TO FILE THE QUARTERLY RETURNS IN TIME, BUT THE JCIT IS OF THE OPINION THAT THE DEPARTMENT HAS CONDUCTED AWARENESS PROGRAMMES. IN OUR OPINION, BY CONDUCTING THE AWARENESS PROGRAMMES BY THE DEPARTMENT SHOULD NOT GIVE A SOLUTION TO ALL THE PRACTICAL PROBLEMS FACE D BY THE ASSESSEE. AT THE BEST, AWARENESS PRO GRAMMES CONDUCTED BY THE D EPARTMENT FACILITATE THE ASSESSEE FOR SHIFTING MANUAL TO ELECTRONIC FILING OF THE RETURN. WHEN THE ASSESSEE PARTICULARLY SUBMITTED THAT NO TECHNICAL EXPERT S AVAILABLE WITH HIM AND THE SAME IS EXPLAINED BEFORE THE JCIT, HE SIMPLY REJECTED THE PLEA OF THE ASSESSEE ON THE GROUND THAT AWARENESS PROGRAMMES CONDUCTED BY THE DEPARTMENT. WE FIND TH A T THE ORDER PASSED BY THE JCIT AND CONFIRMED BY THE LD. CIT(A) IS NOT CORRECT. WE FIND THAT THERE IS A REASONABLE CAUSE FOR THE ASSESSEE IN NON - FILING OF QUARTERLY RETURNS IN TIME AND THEREFORE, PENALTY UNDER SECTION 272A(2)(K) IS NOT WARRANTED IN THIS CASE. THUS, KEEPING IN VIEW OF THE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE O F THE OPINION THAT THE PENALTY LEVIED UNDER SECTION 272A(2)(K) HAS TO BE CANCELLED. ACCORDINGLY, WE CANCELLED. 9. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON TH IS 3 1 S T DAY OF AUGUST , 201 7 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 3 1 S T AUGUST , 201 7 . 5 ITA NO. 236/VIZ/2017 ( AP O ORVA HEALTH SERVICES P. LTD. ) VR/ - COPY TO: 1. THE ASSESSEE - APPORVA HEALTH SERVICES PVT. LTD., 50 - 17 - 62, RAJENDRA NAGAR, VISAKHAPATNAM. 2. THE REVENUE - JCIT, RANGE - 6(TDS), VISAKHAPATNAM. 3. THE CIT(TDS), VIJAYAWADA. 4. THE CIT(A) - 1, GUNTUR. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.