Shiji Leena, CHENNAI V. JCIT Non Corporate Range 7, CHENNAI

ITA 2866/CHNY/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 1103 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 09-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR
• Assessee Lawyers: G SEETHARAMAN
• Keywords: Opportunity of being heard; Reasonable cause

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , C B ENCH, CHENNAI . . . , . , # BEFORE SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI S.JAYARAMAN, ACCOUNTANT MEMBER / I.T.A. NO.2866/CHNY/2018 '' /ASSESSMENT YEAR : 2012-13 SMT. SHIJI LEENA, 707A, MTH ROAD, MANNURPET, PADI, CHENNAI-600 050. VS THE JOINT COMMISSIONER OF INCOME TAX, NON-CORPORATE RANGE-7 CHENNAI-600 034. PAN:AEWPL3144 C ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR.G.SEETHARAMAN, FCA /RESPONDENT BY : MR.R.CLEMENT RAMESH KUMAR, ADDL.CIT /DATE OF HEARING : 28.02.2019 /DATE OF PRONOUNCEMENT : 18.03.2019 / O R D E R PER S.JAYARAMAN, AM: THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER O F COMMISSIONER OF INCOME TAX (APPEALS)-7, CHENNAI, IN ITA NO. 92/C IT(A)-7/2017-18 DATED 31.08.2018 FOR ASSESSMENT YEAR 2012-13. 2. SMT . SHIJI LEENA, THE ASSESSEE, AN INDIVIDUAL, IS CARRYI NG ON BUSINESS IN PURCHASE AND SALE OF STEEL AND OTHE R SCRAP ITEMS. DURING THE ASSESSMENT YEAR 2012-13, SHE CLAIMED TO HAVE RE CEIVED UNSECURED LOANS AGGREGATING TO 81,25,000/- FROM VARIOUS PARTIES TO MEET HER BUSINESS COMMITMENTS. THE JCIT INITIATED PENALTY PR OCEEDINGS 2 ITANO.2866/CHNY/2018 U/S.269SS AND LEVIED PENALTY OF 82,75,000/- U/S.271D. AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED AN APPEA L BEFORE THE CIT(A). THE LD. CIT(A) DISMISSED THE APPEAL FOR WANT OF REP RESENTATION. AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED THIS APPEAL WITH THE FOLLOWING GROUNDS:- 1. CIT (APPEALS) ERRED BOTH IN LAW AND ON THE FACTS OF THE CASE IN SUSTAINING THE LEVY OF PENALTY OF RS.82,75,000/- U/ S.271D OF THE ACT. 2. HE ERRED IN HOLDING THAT THE APPELLANT HAD NO REASONABLE CAUSE FOR RECEIVING THE LOAN, IN CASH. 3. HE ERRED IN HOLDING THAT THE APPELLANT HAS NOT SATISFACTORILY PROVED BUSINESS EXIGENCIES FOR TAKING THE LOAN, IN CASH. 4. HE FAILED FOR APPRECIATE THAT THE APPELLA NT HAD BEEN ASSESSED TO TAX FOR THE PAST SEVERAL YEARS AND THAT THE APPELLA NT HAD NOT CONTRAVENED SEC.269SS OF THE ACT, IN ALL THE EARLIE R YEARS. 5. HE ALSO FAILED TO APPRECIATE THAT THE APPEL LANT IS CARRYING ON THE BUSINESS OF PURCHASE AND SALE OF SCRAP AND THAT, TH EREFORE, SHE HAD TO TAKE THE LOAN, IN CASH, FOR BUSINESS REQUIREMENTS. 6. HE ALSO FAILED TO APPRECIATE THE GENUINENESS OF THE TRANSACTION HAS NOT BEEN DISPUTED. 7. THE APPELLANT, THEREFORE, PRAYS THAT THE LEVY OF PENALTY MAY BE DROPPED. 3. THE LD. AR SUBMITTED THAT THE LD. CIT (A) HAS GI VEN JUST TWO CHANCES FOR ENTERING APPEARANCE, BUT THE ASSESSEE WAS UNABLE TO ENTER APPEARANCE AS SHE COULD NOT GIVE THE RELEVAN T NOTICE IN TIME. HE PLEADED THAT BEING PENALTY PROCEEDINGS, THE LD CIT(A) OUGHT TO HAVE GIVEN AN EFFECTIVE OPPORTUNITY OF BEING HEARD AND D ECIDED THE ISSUES ON MERITS. SINCE HE HAS NOT DONE SO, THE LD.AR PLEADE D THAT THE LD CIT(A) 3 ITANO.2866/CHNY/2018 MIGHT BE DIRECTED TO AFFORD EFFECTIVE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND DECIDE THE ISSUES ON MERITS. 4. WE HEARD THE RIVAL SUBMISSIONS. ON THE FACTS AND CIRCUMSTANCES OF THIS CASE, WE DEEM IT FIT TO REMIT THIS CASE TO T HE LD CIT(A) WITH A DIRECTION TO AFFORD EFFECTIVE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND THEN DECIDE THE ISSUES ON MERITS. THE ASSESSEE S APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. 5. IN THE RESULT, THE ASSESSEES APPEAL IS TREATE D AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON 18 TH MARCH, 2019 SD/- SD/- ( . . . ) ( . ) (N.R.S.GANESAN) (S.JAYARAMAN) ( ! / JUDICIAL MEMBER) ( ! / ACCOUNTANT MEMBER) /CHENNAI, $ /DATED 18 TH MARCH, 2019 SOMU () *) /COPY TO: 1. APPELLANT 2. RESPONDENT 3. + () /CIT(A) 4. + /CIT 5. ) / /DR 6. 2 /GF