Inder Hotels Pvt. Ltd., Ahmedabad V. The Addl. CIT, TDS, Ahmedabad

ITA 2573/AHD/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94819 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 03-09-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ./ ITA NO. 2573/AHD/2015 / ASSESSMENT YEAR: 2011-12 INDER HOTELS PRIVATE LIMITED C/O. MEHTA LODHA & CO., CHARTERED ACCOUNTANTS, 105, SAKAR-I, ASHRAM ROAD, AHMEDABAD .. APPELLANT PAN : AAACI 3674 H VS ADDL. COMMISSIONER OF INCOME-TAX TDS RANGE, AHMEDABAD .. RESPONDENT ASSESSEE(S) BY : SHRI PRAKASH D. SHAH , AR REVENUE BY : SHRI ANIL KUMAR BHARDWAJ , SR - DR / DATE OF HEARING 26/11/2015 /DATE OF PRONOUNCEMENT 08/12/2015 / O R D E R PER SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS AGAINST THE O RDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-8, AHMEDAB AD DATED 11.06.2015 FOR ASSESSMENT YEAR 2011-12, ON TH E FOLLOWING GROUNDS:- THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL S) HAS ERRED IN LAW AND FACTS BY CONFIRMING PENALTY OF RS.1,92,000/- LEVIED UNDER SECTION 272A(2)(K) OF TH E ACT ITA NO. 2573/AHD/2015 INDER HOTELS PVT LTD VS. ACIT AY 2011-12 - 2 - AND THEREFORE THE LEARNED ASSESSING OFFICER BE DIRE CTED TO DELETE THE PENALTY OF RS.1,92,000/- LEVIED UNDER SE CTION 272A(2)(K) OF THE ACT. 2. AT THE TIME OF HEARING, THE LD. AUTHORIZED REPRE SENTATIVE FOR THE ASSESSEE POINTED OUT THAT SIMILAR ISSUE ARO SE BEFORE THE AHMEDABAD C BENCH OF THE TRIBUNAL IN THE CASE OF ITO VS. THE ORIENTAL INSURANCE COMPANY LTD. IN ITA NO. 2906/AHD/2009 FOR ASSESSMENT YEAR 2007-08, WHEREIN THE SAME WAS DECIDED IN FAVOUR OF THE ASSESSEE BY OBSER VING AS UNDER:- 5. WE HAVE HEARD THE RIVAL PARTIES AND PERUSED THE MATERIAL ON RECORD. IN OUR CONSIDERED VIEW THE LD. CIT(A) WAS JUSTIFIED IN DELETING THE IMPUGNED PENALTY. HE HAS GIVEN COGENT REASONS WHILE DELETING THE PENALTY. TH ERE IS NO DISPUTE ABOUT THE FACT THAT THE APPELLANT HAS DEPOSITED MOST OF AMOUNT OF THE TAX DEDUCTED AT SOU RCE UNDER THE PROVISIONS OF THE ACT WITH THE GOVERNMENT WITHIN STIPULATED TIME. HOWEVER, WHERE THERE IS DEL AY IN SUCH DEPOSITS, SAME HAS BEEN DEPOSITED WITH INTERES T. FURTHER, THE TAX DEDUCTED AT SOURCE FOR THE RELEVAN T PERIOD WAS DEPOSITED BY THE APPELLANT ALONG WITH CHARGEABLE INTEREST BEFORE THE ISSUE OF SHOW CAUSE NOTICE FOR THE PENALTY UNDER REFERENCE. THE DEFAULT FOR WHICH PENALTY HAS BEEN LEVIED BY THE AO RELATES TO LATE SUBMISSION OF FORM NO.24Q AND 26Q OF THE IT RULES. THE ASSESSEES BELIEF CONSTITUTES A REASONABLE CAUS E WITHIN THE MEANING OF SEC.273B OF THE ACT. SEC.273B OF THE ACT LAYS DOWN THAT THE PENALTY SHALL NOT BE IMP OSED IN RESPECT OF A DEFAULT RELATING TO THE PROVISIONS MENTIONED THEREIN IF THE PERSON OR THE ASSESSEE CONCERNED CAN SHOW THAT THERE WAS A REASONABLE CAUS E FOR DEFAULT IN QUESTION. SECTION 272A(2)(K) FALLS W ITHIN THE AMBIT OF SEC.273B OF THE ACT. IT IS OBSERVED TH AT THE ITA NO. 2573/AHD/2015 INDER HOTELS PVT LTD VS. ACIT AY 2011-12 - 3 - AO HAS LEVIED THE PENALTY IN A ROUTINE MANNER WITHO UT BRINGING THE FACTS ON RECORD TO ESTABLISH THAT THE APPELLANT COMMITTED THE DEFAULT WITHOUT A REASONABL E CAUSE. THE LD. CIT(A) HAS RELIED ON THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF HINDUSTAN STEE L LTD. VS. STATE OF ORISSA (SUPRA) AND HONBLE GUJARA T HIGH COURT IN THE CASE OF HARSIDDH CONSTRUCTION (P) LTD. VS. CIT WHICH ARE SQUARELY APPLICABLE TO THE FACTS OF ASSESSEES CASE. WE FIND NO INFIRMITY IN THE ORDER OF LD. CIT(A) AND UPHOLD THE SAME. THE GROUND RAISED BY TH E REVENUE IS DISMISSED. 2.1. NOTHING CONTRARY WAS BROUGHT TO OUR KNOWLEDGE, SO FOLLOWING THE AFORESAID DECISION AND REASONING, WE ARE NOT INCLINED TO CONCUR WITH THE FINDINGS OF THE CIT(A) WHO HAS CONFIRMED THE PENALTY U/S 272A(2)(K) OF RS.1,92,000 /-. SAME IS DIRECTED TO BE DELETED FOLLOWING THE REASONING G IVEN BY THE CO-ORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF TH E ORIENTAL INSURANCE COMPANY LTD (SUPRA). ASSESSING OFFICER I S DIRECTED ACCORDINGLY. 3. AS A RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 8TH OF DECEMBER, 2 015 AT AHMEDABAD. SD/- SD/- ( RAJESH KUMAR ) ACCOUNTANT MEMBER ( SHAILENDRA KUMAR YADAV ) JUDICIAL MEMBER AHMEDABAD; DATED 08/12/2015 *BT ITA NO. 2573/AHD/2015 INDER HOTELS PVT LTD VS. ACIT AY 2011-12 - 4 - / COPY OF THE ORDER FORWARDED TO : 1. '# / THE APPELLANT 2. $%'# / THE RESPONDENT. 3. && ' / CONCERNED CIT 4. ' ( ) / THE CIT(A), 5. ()* $++ , , / DR, ITAT, AHMEDABAD 6. *, / GUARD FILE. / BY ORDER, //TRUE COPY// / (DY./ASSTT.REGISTRAR) ! , / ITAT, AHMEDABAD