Joint Sub Registrar, Ratlam V. Director of income Tax (I & C I), Bhopal

ITA 256/Ind/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2478 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 23-03-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K G GOYAL
• Assessee Lawyers: MANISH DAFRIA
• Keywords: Reasonable cause
• Section: 273B

Judgement Text

JOINT SUB REGISTRAR, RATLAM ITA NO.256/IND/2018 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE HON'BLE KUL BHARAT, JUDICIAL MEMBER AND HON'BLE MANISH BORAD, ACCOUNTANT MEMBER ITA NO.256/IND/2018 ASSESSMENT YEAR 2014-15 REVENUE BY S HRI K.G. GOYAL , SR.DR ASSESSEE BY SHRI MANISH DAFRIA , CA DATE OF HEARING 1 8. 0 6 .2019 DATE OF PRONOUNCEMENT 20 . 0 6 .2019 O R D E R PER MANISH BORAD, AM. THIS APPEAL IS FILED AT THE INSTANCE OF THE ASSESSE E PERTAINING TO ASSESSMENT YEAR 2014-15 AND IS DIRECTED AGAINST THE ORDER OF LD. DIRECTOR OF INCOME TAX(I&CI) (IN SHORT DIT(I&CI), BHOPAL DATED 29.12.2017 FRAMED U/S 271FA R.W.S. 274 OF THE INCO ME TAX ACT 1961(IN SHORT THE ACT). 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF AP PEAL; JOI NT SUB REGISTRAR , FIRST FLOOR, RANJEET VILAS PALACE, PALACE ROAD, RATLAM VS. DIRECTOR OF INCOME TAX (I&CI), BHOPAL ( APPELLANT ) (RESPONDENT ) T AN NO. BPL J101954B JOINT SUB REGISTRAR, RATLAM ITA NO.256/IND/2018 2 1.THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED DIT(I&CI) IS NOT JUSTIFIED IN LEVYING A PENALTY OF RS.3,51,500/- UNDER SECTION 271FA. 2. THE LD. DIT(I&CI) HAD FAILED TO APPRECIATE THE F ULL FACTS OF THE CAZSE, AS AVAILABLE BEFORE HIM. AS SUCH LEVIED PENALTY IS UN WARRANTED, ARBITRARY AND WITHOUT PROVIDING/REBUTTING THE FACTS. THUS TH E PENALTY SO LEVIED REQUIRES TO BE DELETED IN FULL. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. DIT(I&C) HAD ERRED IN NOT PROVIDING PROPER OPPORTUNITY OF HEARIN GS. YOUR APPELLANT RESERVES THE RIGHTS TO ADD, ADDUCE O R ALTER ANY OF THE GROUNDS OF APPEAL, AS MENTIONED. 3. BRIEFLY STATED FACTS AS CULLED OUT FROM THE REC ORDS ARE THAT THE ASSESSEE IS LOCAL AUTHORITY UNDER THE STATE GOVERNM ENT OF MADHYA PRADESH IN THE NAME OF JOINT SUB REGISTRAR, RATLAM. AS PER THE PROVISIONS OF SECTION 285BA OF THE ACT THE ASSESSEE IS REQUIRED TO SUBMIT A STATEMENT IN FORM 61B FOR EVERY FINANCIAL YEAR BY 31 ST MAY OF FOLLOWING THAT YEAR. IN FINANCIAL YEAR 2014 -15 THE DUE DATE OF FILING OF INFORMATION IN PRESCRIBED FORM NO.61B WAS 31.5.2015. THIS DATE WAS EXTENDED BY THE INCOME TAX DEPARTMENT TO 10.9.2015. THE ASSESSEE FAILED TO FILE THE ANNUAL INFORMATION RETURN (AIR) AS REQUIRED AS PER THE PROVISIONS OF S ECTION 285BA. SHOW CAUSE NOTICE WAS ISSUED BY THE LD. DIRECTOR OF INCOME TAX JOINT SUB REGISTRAR, RATLAM ITA NO.256/IND/2018 3 (I&CI) ON 26.11.15 TO FILE NECESSARY INFORMATION LA TEST BY 15.12.2015 BUT NO COMPLIANCE WAS RECEIVED. AGAIN N OTICE WAS ISSUED ON 31.03.2016 U/S 271FA R.W.S. 274 OF THE AC T FOR LEVYING PENALTY FOR NON FILING OF THE INFORMATION. NONE AT TENDED ON THE DATE OF HEARING. LAST OPPORTUNITY WAS GIVEN TO APPEAR B EFORE 17.11.2017 AND THE ASSESSEE AGAIN FAILED TO COMPLY WITH THE N OTICE. LD. DIRECTOR OF INCOME TAX (I&CI) ACCORDINGLY LEVIED TH E PENALTY U/S 271FA OF THE ACT @RS.500/- FOR THE PERIOD OF DELAY OF 703 DAYS AND COMPUTED THE PENALTY AT RS.3,51,500/-. AGGRIEVED A SSESSEE IS NOW IN APPEAL BEFORE THE TRIBUNAL. 4. AT THE OUTSET LD. COUNSEL FOR THE ASSESSEE SUBMI TTED THAT THE ISSUE RAISED IN THIS APPEAL IS SQUARELY COVERED BY THE DECISION OF THIS CO-ORDINATE BENCH IN THE CASE OF SUB REGISTRAR JAORA V/S DIRECTOR INCOME TAX (I&CI), BHOPAL ITA NO.108/IND/2 018 ORDER DATED 16.05.2019. HE FURTHER STATED THAT THE FACTS , FIGURES AND CIRCUMSTANCES ARE VERBATIM SIMILAR AND THEREFORE PRAYED THAT THE DECISION TAKEN IN THE CASE OF ITA NO.108/IND/2018 ORDER DATED 16.05.2019 MAY BE APPLIED ON THE ISSUE RAISED IN TH E INSTANT APPEAL. JOINT SUB REGISTRAR, RATLAM ITA NO.256/IND/2018 4 5. LD. DEPARTMENTAL REPRESENTATIVE THROUGH SUPPORTE D ORDER OF THE LOWER AUTHORITY BUT COULD NOT CONTROVERT THE CO NTENTIONS MADE BY THE LD. COUNSEL FOR THE ASSESSEE. 6. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. THE ASSESSEE IS IN APPEAL AGAINS T THE LEVY OF PENALTY OF RS.3,51,500/- U/S 271FA OF THE ACT FOR N ON FILING OF ANNUAL INFORMATION RETURN. WE FIND THAT SIMILAR ISS UE, SAME FACTS AND FIGURES CAME UP BEFORE US IN THE CASE OF SUB RE GISTRAR JAORA V/S DIRECTOR INCOME TAX (I&CI), BHOPAL (SUPRA) WHER EIN AFTER ADJUDICATING THE ISSUE THE PENALTY WAS SUSTAINED AT RS.9,700/- AFTER OBSERVING AS FOLLOWS:- 6. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. THE ASSESSEE IS A LOCAL AUTHORITY CONTR OLLED BY STATE GOVERNMENT OF MADHYA PRADESH AND CARRIES OUT THE WO RK OF REGISTRATION OF THE DOCUMENTS PERTAINING TO TRANSFER OF IMMOVEABLE PROPERTIES. THE ASSESSEE IS COVERED UNDER THE LIST OF PERSONS PROVI DED U/S 285BA SUB SECTION (I) OF THE ACT AND IS UNDER OBLIGATION TO F URNISH AIR FOR THE FINANCIAL TRANSACTION OR REPORTABLE ACTION IN FORM NO.61B. A S PER PROVISIONS OF SECTION 285BA(II) OF THE ACT ASSESSEE WAS REQUIRED TO FURNISH STATEMENT IN FORM NO.61B FOR EVERY FINANCIAL YEAR BY 31 ST MAY OF THE FOLLOWING YEAR. THE DUE DATE FOR FINANCIAL YEAR 2014-15 WAS 31.5.20 15 WHICH WAS SUBSEQUENTLY EXTENDED TO 10.12.2015. THE ASSESSEE FAILED TO FILE THE INFORMATION BY 10.5.2016. NOTICES WERE ISSUED BY T HE REVENUE AUTHORITIES JOINT SUB REGISTRAR, RATLAM ITA NO.256/IND/2018 5 TO FILE THE DETAILS LATEST BY 15.12.2015 BUT NO COM PLIANCE WAS MADE. THEREAFTER SHOW CAUSE NOTICE U/S 271FA R.W.S. 274 O F THE ACT WAS ISSUED ON 31.3.2016 FOR IMPOSING THE PENALTY FOR THE LAPSE IN NOT FILING THE ANNUAL INFORMATION REPORT BUT THERE WAS NO COMPLIANCE TO T HESE NOTICES. ASSESSEE ALSO FAILED TO APPEAR ON DATES FIXED FOR HEARING ON 17.11.2017 AND 21.12.2017. FOR THIS REASON PENALTY OF RS.3,51, 500/- WAS WORKED OUT @ RS.500/- FOR THE DELAY OF 703 DAYS (FROM 16.12.20 15 TO 17.11.2017). 7. WE OBSERVE THAT THE AMOUNT OF PENALTY IS COMPUTE D AS PER THE PROVISIONS OF SECTION 271FA OF THE ACT WHICH PROVID ES THAT BEFORE 1.04.2018 PENALTY OF RS.100/-PER DAY MAY BE CHARGE D FOR NUMBER OF DAYS DELAY. SECTION 273B OF THE ACT PROVIDES FOR NOT LEVYING PENALTY IN CERTAIN CASES IF THE ASSESSEE PROVES THAT THERE WAS A REASONABLE CAUSE FOR THE FAILURE. THIS SECTION ALSO REFERS TO THE PENAL TY OF SECTION 271FA OF THE ACT. REFERENCE WAS MADE TO VARIOUS CORRESPONDENCES WITH THE CHIEF SECRETARY, GOVT. OF MADHYA PRADESH, DEPARTMENT OF C OMMERCIAL TAXES AND CHIEF COMMISSIONER OF INCOME TAX AS WELL AS SECRETA RY, FINANCE DEPARTMENT OF REVENUE WHICH TALKS ABOUT THE TECHNIC AL PROBLEM DUE TO WHICH NON INTEGRATION OF THE DEPARTMENTS PORTAL WIT H THE INCOME TAX DEPARTMENTAL PORTAL FOR PAN AUTHENTICATION WAS NOT ACHIEVED. THIS PROBLEM WAS SOLVED AT LATER STAGE AND FINALLY ASSES SEE FILED ANNUAL INFORMATION REPORT FOR FINANCIAL YEAR 2014-15 ON 14 .12.2017. CERTAINLY THERE WAS A DELAY BUT THERE WAS REASONABLE CAUSE FO R SUCH DELAY. 7. ON EXAMINING THE FACTS OF THE INSTANT APPEAL IN THE LIGHT OF THE ABOVE DECISION WE FIND THAT THE ISSUE IS SQUARELY C OVERED BY THIS DECISION AND LD. DEPARTMENTAL REPRESENTATIVE FAILED TO BRING ANY CONTRARY MATERIAL. WE THEREFORE SUSTAIN THE PENALT Y OF RS.9,700/- U/S 271FA OF THE ACT AND DELETE THE REMAINING AMOUN T OF PENALTY OF JOINT SUB REGISTRAR, RATLAM ITA NO.256/IND/2018 6 RS,3,41,800/- AND PARTLY ALLOW THE ASSESSEES APPEA L. 8. ACCORDINGLY APPEAL OF THE ASSESSEE IS PARTLY ALL OWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 20.06.20 19. SD/- SD/- ( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER / DATED : 20 JUNE, 2019 /DEV COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER ASSISTANT REGISTRAR, ITAT, INDORE