PVS Automotive Co. P ltd, Calicut V. ADCIT, Calicut

ITA 288/COCH/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64837 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 26-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SREENIVASU KOLLIPAKKA
• Assessee Lawyers: M V VENUGOPAL

Judgement Text

1 ITA NO. 288/COCH/2011 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKARA N(AM) I.T.A NO. 288/COCH/2011 (ASSESSMENT YEAR 2005-06) PVS AUTOMOTIVE COMPANY PVT LTD VS THE ADDL.CIT KTC NAGAR, MEENCHANTHA RANGE-1 CALICUT CALICUT 673 018 PAN : AADCP3472B (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M.V. VENUGOPAL RESPONDENT BY : SHRI SREENIVASU KOLLIPAKKA DATE OF HEARING : 18-09-2012 DATE OF PRONOUNCEMENT : 18-09-2012 O R D E R PER N.R.S. GANESAN (JM) THIS APPEAL OF THE TAXPAYER IS DIRECTED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME-TAX(A) DATED 24-02-2011 CONFIRM ING THE PENALTY LEVIED U/S 271D OF THE ACT. 2. SHRI M.V. VENUGOPAL, THE LD.REPRESENTATIVE FOR T HE TAXPAYER SUBMITTED THAT THE TAXPAYER ADMITTEDLY BORROWED CASH EXCEEDING RS. 20,000 FOR MEETING THE URGENT BUSINESS NEEDS. ACCORDING TO THE LD.REPRESE NTATIVE, THE TAXPAYER HAD ISSUED CHEQUES FOR SALES-TAX PAYMENT AND OTHER COMME RCIAL PAYMENTS. HOWEVER, SUFFICIENT FUNDS WERE NOT AVAILABLE IN THE BANK. TH EREFORE, THE FUNDS WERE 2 ITA NO. 288/COCH/2011 URGENTLY BORROWED IN CASH AND WERE DEPOSITED IN THE BANK TO CLEAR THE CHEQUES. THESE DETAILS WERE NOT EXAMINED BY BOTH THE AUTHORI TIES BELOW. WE HEARD, SHRI SREENIVASU KOLLIPAKA, THE LD.DR ALSO. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND ALS O PERUSED THE MATERIAL AVAILABLE ON RECORD. THE SPECIFIC CLAIM OF THE TAX PAYER IS THAT SUFFICIENT FUNDS WERE NOT AVAILABLE FOR PAYMENT OF SALES TAX AND COM MERCIAL PAYMENTS FOR WHICH THE CHEQUES WERE ALREADY ISSUED. THESE DETAILS NEE D FACTUAL VERIFICATION BY THE ASSESSING OFFICER. ADMITTEDLY, THESE FACTS WERE NO T EXAMINED BY BOTH THE AUTHORITIES BELOW. THEREFORE, THE ORDERS OF THE LO WER AUTHORITIES ARE SET ASIDE AND THE MATTER IS RESTORED TO THE FILE OF THE ASSES SING OFFICER. THE ASSESSING OFFICER IS DIRECTED TO EXAMINE THE CLAIM OF THE TAX PAYER AS TO WHETHER THE TAXPAYER REALLY NEEDED FUNDS FOR CLEARING THE CHEQU ES FOR COMMERCIAL PAYMENTS OR NOT AND THEREAFTER DECIDE THE MATTER IN ACCORDAN CE WITH LAW AFTER GIVING A REASONABLE OPPORTUNITY TO THE TAXPAYER. 4. WITH THE ABOVE OBSERVATIONS, THE APPEAL OF THE T AXPAYER IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 18 TH SEPTEMBER, 2012. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 18 TH SEPTEMBER, 2012 PK/- COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE COMMISSIONER OF INCOME-TAX 4. THE COMMISSIONER OF INCOME-TAX(A) 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH