The Ranasan Froup Majoor Kamdar Sahakari Mandli Ltd., Sabarkantha V. The Income tax Officer,S.K.Ward-2, Himatnagar

ITA 2555/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1062 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 12-07-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 08-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S N DIVETIA
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH BEFORE: S H RI PRAMOD KUMAR , ACCOUNTANT MEMBER AND SHR I S. S. GODARA , JUDICIAL MEMBER THE RANASAN GROUP MAJOOR KAMDAR SAHAKARI MANDLI LTD. AT & PO. RANASAN TAL. TALOD DIST. SABARKANTHA - 382870, PAN: AAAFT9281A (APPELLANT) VS THE ITO, SK WARD - 2, HIMATNAGAR (DIST. S.K.) (RESPONDENT) REVENUE BY : S H RI SANJEEV KUMAR , SR. D . R. ASSESSEE BY: S H RI S.N. DIVETIA , A.R. DATE OF HEARING : 12 - 07 - 2 016 DATE OF PRONOUNCEMENT : 26 - 07 - 2 016 / ORDER P ER : S. S. GODARA , JUDICIAL MEMBER : - THIS ASSESSEE S APPEAL FOR A.Y. 2009 - 10 , AR ISES FROM ORDER OF THE CIT (A) - VIII, AHMEDABAD DATED 27 - 08 - 2012 IN APPEAL NO. CIT(A) - VIII/ITO S.K. WD. (2)/5 7 0/10 - 11 , UPHOLDING PENALTY OF RS. 63,947/ - IMPOSED BY THE ASSESSING OFFICER VIDE ORDER DATED 23 - 03 - 2010, IN I T A NO . 2555 / A HD/20 12 A SSESSMENT YEAR 200 9 - 10 I.T.A NO. 2555 /AHD/20 12 A.Y. 2009 - 10 PAGE NO THE RANASAN GROUP MAJOOR KAMDAR SAHAKARI MANDLI LTD. VS. ITO 2 PROCEEDINGS UNDER SECTION 271B OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. WE COME TO RELEVANT FACTS OF THE CASE. THE ASSESSEE IS A CO - OPERATIVE SOCIETY. IT FILED RETURN ON 31 - 03 - 2010. ITS GROSS RECEIPTS READ A FIGUR E OF RS. 1,27,89,365/ - . THE ASSESSING OFFICER WAS OF THE VIEW THAT THESE GROSS RECEIPTS EXCEEDED THRESHOLD PRESCRIBED LIMIT OF RS. 40 LACS FOR GETTING ACCOUNT S AUDITED U/S. 44AB OF THE ACT AND TO BE FURNISHED ALONG WITH DETAILS OF AUDIT INFORMATION PROVID ED IN THE RETURN OF INCOME. THERE IS NO DISPUTE THAT THE ASSESSEE HAD SUBMITTED A DECLARATION WITH ITS RETURN STATING ITS AUDITOR S INFORMATION SIGNING THE TAX AUDIT REPORT. THE ASSESSING OFFICER SOUGHT COPY OF ITS AUDIT REPORT. THE ASSESSEE DOES NOT SE EM TO HAVE RESPON D ED. THE ASSESSING AUTHORITY THEREAFTER ISSUED NOTICE TO ITS AUDITOR CONCERNED. HE ALSO DID NOT COME PRESENT. THIS MADE THE ASSESSING OFFICER TO LEVY THE IMPUGNED PENALTY U/S. 271B OF THE ACT. THE CIT(A) CONFIRMS THE SAME. 3. WE HAVE HEARD BOTH THE LEARNED REPRESENTATIVES REITERATING THEIR RESPECTIVE STANDS. THERE IS NO DISPUTE ABOUT THE ASSESSEE IS A CO - OPERATIVE SOCIETY GOVERNED BY THE STATE CO - OPERATIVE LAWS MANDATING APPOINTMENT OF AN AUDITOR. BOTH THE LOWER AUTHORITIES DO NOT DI SPUTE THAT THIS COOPERATIVE SOCIETY DULY SUBJECTED TO AUDITED ACCOUNTS. THE IR ONLY CASE IS THAT THE ASSESS EE DECLARED NAME OF ITS AUDITOR ONLY . THE ASSESSING OFFICER HIMSELF ISSUED THE NOTICE TO THE AUDIT FIRM FOR FURNISHING COPY OF ASSESSEE S AUDIT REPO RT. THE SAME I.T.A NO. 2555 /AHD/20 12 A.Y. 2009 - 10 PAGE NO THE RANASAN GROUP MAJOOR KAMDAR SAHAKARI MANDLI LTD. VS. ITO 3 WAS NOT FILED IN SPITE OF ALL THESE EFFORTS. WE HOLD IN THESE PECULIAR FACTS THAT THIS NON - FURNISHING OF ASSESSEE S AUDIT REPORT BEFORE THE DUE DATE IS BECAUSE OF THE ABOVE STATED R EASON ON ACCOUNT OF ITS AUDITOR S NON - COOPERATIVE ATTITUDE. WE ARE OF THE OPINION IN THESE PECULIAR FACT S THAT HE SAME FORMS A REASONABLE CAUSE FOR DELETING THE IMPUGNED SECTION 271B PENALTY. THE REVENUE FURTHER FAILS TO REBUT THE ASSESSEE S FACTUAL PLEA THAT IT HAD ALREADY GOT COMPLETED ITS AUDIT EXERCISE ON 30 - 09 - 2010 WITHIN THE STATUTORY TIME LIMIT . WE FIND NO REASON TO SUSTAIN THE IMPUGNED PENALTY IN THESE PECULIAR FACTS AND CIRCUMSTANCES. 4. THIS ASSESSEE S APPEAL IS ALLOWED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 26 - 07 - 201 6 SD/ - SD/ - ( PRAMOD KUMAR ) ( S. S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 26 /07 /2016 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , I.T.A NO. 2555 /AHD/20 12 A.Y. 2009 - 10 PAGE NO THE RANASAN GROUP MAJOOR KAMDAR SAHAKARI MANDLI LTD. VS. ITO 4 / ,