Om Construction Co., V. ACIT,

ITA 245/RAN/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 0371 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2002-2003
• Appeal Filed On: 16-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A RAKSHIT
• Assessee Lawyers: V K JALAN FCS
• Section: 143(3); 142(1); 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI CIRCUIT BENCH, RANCHI BEFORE SHRI N.S. SAINI, HONBLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER ITA NOS. 243 TO 249/RAN/2014 (ASST. YEARS : 2000-01 TO 2006-07) M/S. OM CONSTRUCTION COMPANY, CHURCH ROAD, RANCHI. VS. ACIT, CENTRAL CIRCLE-III, RANCHI. PAN NO. AAAFO 8803 H (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI V.K. JALAN FCS. DEPARTMENT BY : SHRI A. RAKSHIT - DR DATE OF HEARING : 04/11/2015. DATE OF PRONOUNCEMENT : 04/11/2015. O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER THESE ARE THE APPEALS FILED BY THE ASSESSEE AGAINS T THE CONSOLIDATED ORDER OF COMMISSIONER OF INCOME TAX (A PPEALS), RANCHI, DATED 30/01/2013 FOR THE ASSESSMENT YEARS 2000-01 T O 2006-07. 2. IN ALL THESE APPEALS, THE COMMON GROUND OF APPEAL TAKEN BY THE ASSESSEE IS THAT COMMISSIONER OF INCOME TAX (APPEAL S) ERRED IN CONFIRMING THE LEVY OF PENALTY UNDER SECTION 271(1) (B) OF THE ACT. 3 . WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE O RDERS OF THE LOWER AUTHORITIES AND THE MATERIALS AVAILABLE ON RE CORD. IN THE INSTANT CASE, THE ASSESSING OFFICER ISSUED NOTICE UNDER SEC TION 142(1) OF THE ACT ASKING THE ASSESSEE TO SUBMIT THE RETURNS AND ALSO THE VARIOUS DETAILS, BUT THE ASSESSEE DID NOT COMPLY WITH THEM. THEREFO RE, ASSESSING 2 ITA NOS. 243-249/RAN/2014 OFFICER INITIATED THE PENALTY PROCEEDINGS UNDER SEC TION 271(1)(B) FOR NON-COMPLIANCE OF THE NOTICES. THE ASSESSING OFFIC ER LEVIED THE PENALTY OF RS. 20,000/- IN EACH YEAR. THE ASSESSING OFFICE R ALSO NOTICED THAT THE ASSESSEE DID NOT COMPLY WITH THE NOTICES AND AL SO DID NOT SUBMIT ANY SATISFACTORY EXPLANATION FOR NON-COMPLIANCE OF THE NOTICES VIDE ORDERS OF THE ASSESSING OFFICER. 4. ON APPEAL, COMMISSIONER OF INCOME TAX (APPEALS) OB SERVED THAT THE ASSESSING OFFICER HAD INITIATED PENALTY PROCEED INGS UNDER SECTION 271(1)(B) OF THE ACT, BUT THE ASSESSEE DID NOT SUBM IT ANY SATISFACTORY EXPLANATION FOR NON-COMPLIANCE OF THE SAME. DURING THE COURSE OF APPELLATE PROCEEDINGS ALSO, THE ASSESSEE COULD NOT SUBMIT ANY SATISFACTORY EXPLANATION FOR NON-COMPLIANCE OF THE NOTICES. HE, THEREFORE, CONFIRMED THE ACTION OF THE ASSESSING OF FICER. 5. BEFORE US, THE AUTHORIZED REPRESENTATIVE OF THE AS SESSEE SUBMITTED THAT WHEN THE ASSESSMENT HAS BEEN MADE UN DER SECTION 153A/153C READ WITH SEC. 143(3) OF THE ACT, NO PENA LTY UNDER SECTION 271(1)(B) OF THE ACT CAN BE LEVIED. 6. ON THE OTHER HAND, THE DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 7. WE FIND THAT THE AHMEDABAD BENCH OF THE TRIBUNAL I N THE CASE OF M/S. RAJ ENTERPRISES VS. ITO IN I.T.A.NO. 958/AHD/2011 IN ASSESSMENT YEAR 2007-08 ORDER DATED 04/05/2015 HAS HELD THAT W HEN AN ASSESSMENT HAS BEEN MADE UNDER SECTION 143(3) AND N OT UNDER SECTION 144 OF THE INCOME TAX ACT, IT MEANS THAT SUBSEQUENT COMPLIANCE IN THE ASSESSMENT PROCEEDINGS WAS CONSIDERED AS GOOD COMPL IANCE AND THE DEFAULTS COMMITTED EARLIER WERE IGNORED BY THE ASSE SSING OFFICER AND THEREFORE, THERE IS NO CASE OF LEVY OF PENALTY UNDE R SECTION 271(1)(B) OF THE ACT. 3 ITA NOS. 243-249/RAN/2014 8 . WE FIND THAT IN THE PRESENT APPEALS BEFORE US, TH E FACTS ARE IDENTICAL, THEREFORE RESPECTFULLY FOLLOWING THE DEC ISION OF AHMEDABAD BENCH OF THE TRIBUNAL IN THE CASE OF M/S. RAJ ENTERPRISES (SUPRA), WE SET ASIDE THE ORDERS OF THE LOWER AUTHORITIES AND DELET E THE LEVY OF PENALTY OF RS. 20,000/- IN EACH YEAR IN THE YEARS UNDER APP EAL AND ALLOW THE GROUND OF APPEAL OF THE ASSESSEE. 9 . IN THE RESULT, APPEALS OF THE ASSESSEE ARE ALLOWE D. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE H EARING ON WEDNESDAY, THE 4 TH DAY OF NOVEMBER, 2015 AT RANCHI. SD/- SD/- (GEORGE MATHAN) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 04 TH NOVEMBER, 2015. VR/- COPY TO: 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT 4. THE CIT(A) 5. THE D.R. 6. GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., RANCHI 4 ITA NOS. 243-249/RAN/2014 DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ARE ENCLOSED AND REM AINING PART OF DICTATION IS TAKEN FROM ITA NOS. 230 TO 235/RAN/201 4 1. DRAFT DICTATED ON 04/11/2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 05/11/2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 05/11/2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 05/11/2015 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 05/11/2015 SR.PS 6. DATE OF PRONOUNCEMENT 04/11/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 05A/11/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER