GANESH AGRI PROPERTIES P.LTD, MUMBAI V. DCIT CEN CIR 39, MUMBAI

ITA 3034/MUM/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2278 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 20-05-2015
• Court: TRIBUNAL
• Department Lawyers: NEIL PHILIP
• Keywords: Non compliance
• Section: 142(1)

Judgement Text

IN THE INC OME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI BEFORE SHRI R.C . SHARMA, A M AND SHRI SANDEEP GOSAIN, JM ./ I.T.A. NO. 3034 /MUM/2015 ( / ASSESSMENT YEAR: 2008 - 09 ) GANESH AGRI PROPERTIES PVT. LTD., 82 MAKER CHAMBER - III, NARIMAN POINT, MUMBAI - 400021 / VS. DCIT, CC - 39, MUMBAI ./ ./ PAN/GIR NO. AACCG 7 142E ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI VIJAY MEHTA / RESPONDENT BY : SHRI NEIL PHILIP / DATE OF HEARING : 20 /07 /2016 / DATE OF PRONOUNCEMENT : 27.7.2016 / O R D E R PER R.C. SHARMA , A. M.: THIS IS AN A PPEAL BY THE ASSESSEE DIRECTED AGAINST THE ORDER BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 5 2 , MU MB AI (CIT(A) FOR SHORT) DATED 19.02 . 2015 FOR THE ASSESSMENT YEAR (A.Y.) 2008 - 09 , IN THE MATTER OF IMPOSITION OF PENALTY U/S 271(1)(B) AMOUNTING TO RS.20,000/ - . 2 ITA NO. 3034 / M UM/2015 (A.Y. 2008 - 09 ) GANESH AGRI PROPERTIES PV T. LTD. VS. DY. CIT 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. IN THIS CASE THE AO HAD LEVIED PENALTY OF RS.20,000/ - FOR ASSESSEES FAILURE TO FILE SUBMISSION AND EXPLANATION FOR NON COMPLIANCE OF THE NOTICE. BY THE IMPUGNED ORDER CIT(A) CONFIRMED THE ACTION OF AO. 3. WE HAVE CONSIDERED RIVAL CONTENTIONS AN D FOUND THAT NOTICE U/S 143(2) AND 142(1) OF THE ACT WAS ISSUED AND SERVED UPON THE ASSESSEE ON 16.08.2010 FIXING THE DATE OF COMPLIANCE ON 16.08.2010. THE NEXT DATE OF HEARING FIXED AT 06.09.2010. THE ASSESSEE DID NOT HAVE A COPY OF STATEMENTS RECORDED U/ S 132(4) OF THE ACT. THE SAME WAS PROVIDED ON 06.09.2010. THE ASSESSEE SUBMITTED EXPLANATIONS WITH NECESSARY SUPPORTING/EVIDENCES RUNNING INTO 18000 PAGES IN RESPECT OF THE VARIOUS SEIZED/IMPOUNDED MATERIALS EVEN PRIOR TO 19.11.2010. DUE TO THE VOLUMINOUS NATURE OF THE EXPLANATIONS, THE EFFORT AND TIME REQUIRED BY THE ASSESSEE TO COMPILE THE SAME CANNOT BE DENIED. THE ASSESSEE, IN ITS REPLY FILED IN RESPONSE TO THE SHOW CAUSE NOTICE HAS STATED THAT EXPLANATIONS WITH NECESSARY SUPPORTING/EVIDENCES HAD BEEN S UBMITTED AND THERE IS NO MALAFIDE INTENTION ON THE PART OF THE ASSESSEE TO NOT PROVIDE THE DETAILS NECESSARY FOR ASSESSMENT. ALL THE REQUISITE DETAILS WERE FILED BY ASSESSEE BY MID - DECEMBER 2010. 3 ITA NO. 3034 / M UM/2015 (A.Y. 2008 - 09 ) GANESH AGRI PROPERTIES PV T. LTD. VS. DY. CIT 4. IN VIEW OF THE ABOVE WE FOUND THAT THERE WAS A REASONABL E CAUSE FOR NON COMPLIANCE WITH THE NOTICE ISSUED BY AO WITHIN THE STIPULATED TIME. ACCORDINGLY AO WAS NOT JUSTIFIED IN IMPOSING PENALTY U/S 271(1)(B) OF THE ACT. 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOU NCED IN THE OPEN COURT ON 27 JULY , 201 6 SD/ - SD/ - ( SANDEEP GOSAIN ) ( R.C. SHARMA) / JUD I C I AL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED : 27 . 0 7 .201 6 PS. ASHWINI / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F ILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBA I.