M/s. Jeet Construction Co., Meerut V. ACIT, Meerut

ITA 271/DEL/2014

• Counselvise Citation: 27120114 RSA 2014
• Duration Of Justice: 1 year(s) 6 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 14-07-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 15-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEVI SHARAN SINGH
• Assessee Lawyers: VINOD KUMAR GOEL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH SMC SMC SMC SMC : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA, VICE , VICE , VICE , VICE PRESIDENT PRESIDENT PRESIDENT PRESIDENT ITA NO ITA NO ITA NO ITA NO . .. . 271/DEL/2014 271/DEL/2014 271/DEL/2014 271/DEL/2014 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2008 2008 2008 2008 - -- - 09 0909 09 M/S JEET CONSTRUCTION CO., M/S JEET CONSTRUCTION CO., M/S JEET CONSTRUCTION CO., M/S JEET CONSTRUCTION CO., 314, ARVINDPURI, 314, ARVINDPURI, 314, ARVINDPURI, 314, ARVINDPURI, MEERUT. MEERUT. MEERUT. MEERUT. PAN : AAAFJ6441J. PAN : AAAFJ6441J. PAN : AAAFJ6441J. PAN : AAAFJ6441J. VS. VS. VS. VS. ASSISTANT COMMISSIONER ASSISTANT COMMISSIONER ASSISTANT COMMISSIONER ASSISTANT COMMISSIONER OF OF OF OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -2, 2,2, 2, MEERUT. MEERUT. MEERUT. MEERUT. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VINOD KUMAR GOEL, ADVOCATE. RESPONDENT BY : SHRI DEVI SHARAN SINGH, SR.DR. DATE OF HEARING : 14.07.2015 14.07.2015 14.07.2015 14.07.2015 DATE OF PRONOUNCEMENT : 03.08.2015 03.08.2015 03.08.2015 03.08.2015 ORDER ORDER ORDER ORDER THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2008-0 9 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A), MEERUT DATED 23 RD OCTOBER, 2013. 2. THE ONLY GROUND OF APPEAL OF THE ASSESSEE IS AS UNDER :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, TH E LD. COMMISSIONER OF INCOME TAX (A) HAS ERRED IN SUSTAINING PENALTY U/S 271A AT RS.25,000/-. 3. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE AC COUNTS AND OTHER DOCUMENTS OF THE ASSESSEE WERE SEIZED DURING T HE COURSE OF SEARCH PROCEEDINGS AND WERE NOT RETURNED TO THE ASSESSEE. THEREFORE, THE ASSESSEE COULD NOT PREPARE THE ACCOUNT BOOKS AND HAS FILED THE RETURN OF INCOME FOR THE PERIOD AFTER THE DATE OF SE ARCH BY APPLYING NET ITA-271/DEL/2014 2 PROFIT RATE OF 8% ON CONTRACT RECEIPTS. HE SUBMITTE D THAT IN THESE FACTS, THE LEARNED CIT(A) WAS NOT JUSTIFIED IN SUSTAININ G THE PENALTY IMPOSED U/S 271A OF THE ACT. 4. LEARNED DR HAS RELIED ON THE ORDER OF THE ASSESSING O FFICER AND THE LEARNED CIT(A). HE SUBMITTED THAT THE ASSESSEE HAS N OT TAKEN STEPS TO PREPARE ITS ACCOUNT BOOKS AFTER THE DATE OF SEA RCH AND, THEREFORE, THE ASSESSING OFFICER WAS JUSTIFIED IN IMPOSING PENALTY FOR NOT MAINTAINING THE BOOKS OF ACCOUNT. 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE PERU SED THE ORDER OF THE ASSESSING OFFICER AND THE LEARNED CIT(A). I FIND THAT THE ACCOUNTS AND OTHER DOCUMENTS OF THE ASSESSEE WERE SEIZED D URING THE COURSE OF SEARCH PROCEEDINGS AND WERE NOT RETURNED TO THE ASSESSEE AND THIS FACT HAS BEEN MENTIONED IN THE PENALTY ORDER AS WELL AS IN THE APPELLATE ORDER PASSED BY THE LEARNED CIT(A). THE ASSE SSEE HAS EXPLAINED THAT IN THESE CIRCUMSTANCES, IT COULD NOT PR EPARE THE BOOKS OF ACCOUNT FOR THE PERIOD AFTER THE DATE OF SEARCH A ND HAS FILED THE RETURN OF INCOME IN THESE YEARS BY APPLYING THE NET P ROFIT RATE OF 8% ON CONTRACT RECEIPTS. I FIND NO FORCE IN THE ARGUMENT OF THE LEARNED CIT(A) THAT IF THE BOOKS OF ACCOUNT AND OTHER DOCUMENTS ARE NOT RETURNED BY THE DEPARTMENT, THE COPIES OF THE SAME COULD HAVE BEE N OBTAINED BY THE ASSESSEE. IN THIS CASE, THE BOOKS OF ACCOUNT AND OTHE R DOCUMENTS UP TO THE DATE OF SEARCH WERE WITH THE DEPARTMENT IT SELF AND, THEREFORE, THERE WAS SUFFICIENT AND VALID REASON FOR T HE ASSESSEE FOR ITS INABILITY TO PREPARE THE BOOKS OF ACCOUNT FOR THE PE RIOD AFTER THE DATE OF SEARCH. THE FACT THAT THE BOOKS OF ACCOUNT AND OTHER DOCUMENTS WERE SEIZED AND WERE NOT RETURNED TO THE ASSESSEE HAS BE EN ADMITTED BY THE ASSESSING OFFICER AS WELL AS LEARNED CIT(A). IN T HESE FACTS OF THE CASE, I FIND THAT IT WAS NOT A FIT CASE FOR LEVY OF PE NALTY U/S 271A OF THE ITA-271/DEL/2014 3 ACT FOR FAILURE TO MAINTAIN BOOKS OF ACCOUNT AND, AC CORDINGLY, THE PENALTY OF `25,000/- LEVIED IS CANCELLED AND THE GRO UND OF APPEAL OF THE ASSESSEE IS ALLOWED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 3 RD AUGUST, 2015. SD/- (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : M/S JEET CONSTRUCTION CO., M/S JEET CONSTRUCTION CO., M/S JEET CONSTRUCTION CO., M/S JEET CONSTRUCTION CO., 314, ARVINDPURI, MEERUT. 314, ARVINDPURI, MEERUT. 314, ARVINDPURI, MEERUT. 314, ARVINDPURI, MEERUT. 2. RESPONDENT : ASSISTANT CO ASSISTANT CO ASSISTANT CO ASSISTANT COMMISSIONER OF INCOME TAX, MMISSIONER OF INCOME TAX, MMISSIONER OF INCOME TAX, MMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -2, MEERUT. 2, MEERUT. 2, MEERUT. 2, MEERUT. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR