JAMDEV TRADERS LLP, CHENNAI V. ITO NON CORPORATE WARD 13(3), CHENNAI

ITA 3118/CHNY/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 3163 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 15-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S R ANITA
• Keywords: Business income; Reasonable cause
• Section: 271B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI , . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI S. JAYARAMAN , ACCOUNTAN T MEMBER I .T.A. NO. 3118 /CHNY/20 1 8 ASSESSMENT YEAR: 20 1 4 - 2015 M/S . JAMDEV TRADERS LLP, NO.70, BASEMENT, R.E. APARTMENTS, ARYA GOWDA ROAD, WEST MAMBALAM, CHENNAI 600 0 3 3 . . [PAN: AA IFJ 6543R ] VS. THE INCOME TAX OFFICER, NON - CORPORATE WARD 13(3 ), INCOME TAX DEPARTMENT, NO.121, M.G. ROAD, NUNGAMBAKKAM, CHENNAI 600 034. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : NONE /RESPONDENT BY : M R S . R. ANITA, J CIT / DATE OF HEARING : 0 4 . 1 1 .2020 / DATE OF PRONOUNCEMENT : 1 8. 1 1 .2020 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER : TH IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 12 , CHENNAI IN I.T.A. NO. 115/CIT(A) - 12/18 - 19, DATED 31.10.2018 RELEVANT TO TH E ASSESSMENT YEAR 20 1 4 2015. I . T . A NO . 3118 /CHNY/20 18 : - 2 - : 2. THE BRIEF FACTS OF THE CASE IS THAT THE ASSESSEE FIRM FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2014 2015 ON 3 RD MARCH, 2015 DECLARING AN INCOME AS NIL. IN THE PENALTY ORDER, THE ASSESSING OFFICER HAS NOTE D THAT THE GROSS RECEIPTS DURING THE YEAR IS RS.25,04,45,878/ - . AS PER THE PROVISIONS OF SECTION 44AB, EVERY PERSON WHO IS CARRYING ON A BUSINESS SHALL, IF HIS TOTAL SALES TURNOVER OR GROSS RECEIPTS EXCEEDS RS.1.00 CRORE SHOULD GET HIS ACCOUNTS OF THE PRE VIOUS YEAR AUDITED BY AN A CCOUNTANT BEFORE THE SPECIFIED DATE AND FURNISH THE SAME BY THAT DATE , THE REPORT OF SUCH AUDIT IN THE PRESCRIBED FORM DULY SIGNED AND VERIFIED BY SUCH AN A CCOUNTANT AND SETTING FORTH SUCH PARTICULARS AS MAY BE PRESCRIBED. THE SP ECIFIED DATE IN RELATION TO THE ASSESSMENT YEAR MEANS 30 TH SEPTEMBER OF THE ASSESSMENT YEAR. THE ASSESSEE IS REQUIRED TO GET HIS ACCOUNTS AUDITED AND FILE THE TAX AUDIT REPORT ELECTRONICALLY BEFORE 30 TH SEPTEMBER, 2014. THE ASSESSEE HAD FILED THE RETURN OF INCOME AS WELL AS THE TAX AUDITED REPORT BELATEDLY ON 30 TH MARCH, 2015. AS NO TAX AUDIT REPORT WAS FILED BELATEDLY OR BEFORE THE DUE DATE, A NOTICE U/S. 271B DATED 22.12.2016 WAS ISSUED ASKING THE ASSESSEE TO SHOW - CAUSE AS TO WHY THE PENALTY U/S.271B SH OULD NOT I . T . A NO . 3118 /CHNY/20 18 : - 3 - : BE LEVIED FOR THE FAILURE TO SUBMIT THE TAX AUDIT REPORT IN THE PRESCRIBED FORM AS REQUIRED U/S.44AB BEFORE THE DUE DATE. THE ASSESSEE HAS EXPLAINED THAT DUE TO TECHNICAL DIFFICULTIES, THE ASSESSEE COULD NOT UPLOAD THE TAX AUDIT REPORT AND SUBM ITTED THAT THE PENALTY MAY BE DROPPED. HOWEVER, THE ASSESSING OFFICER NOT SATISFIED WITH THE EXPLANATION GIVEN BY THE ASSESSEE HAS LEVIED THE PENALTY U/S.271B OF THE INCOME TAX ACT, 1961. 3. THE SAME IS CONFIRMED BY THE LEARNED COMMISSIONER OF INCOME T AX (APPEALS). 4. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW . 5. W E FIND THAT THE AUDIT REPORT WAS NOT UPLOADED DUE TO TECHNICAL DIFFICULTIES OF UPLOADING . THEREFORE, THE A SSESSING OFFICER IS NOT JUSTIFIED , REJECT ED THE EXPLANATION S OF THE ASSESSEE AND LEVIED PENALTY U/S.271B OF THE INCOME TAX ACT, 1961. HOWEVER, BY CONSIDERING THE DETAILED EXPLANATION GIVEN BY THE ASSESSEE WHICH IS EXTRACTED IN THE PENALTY ORDER, P ARA 3 , W E ARE OF THE OPINION THAT THERE IS A REASONABLE CAUSE FOR THE ASSESSEE FOR NOT UPLOADING THE I . T . A NO . 3118 /CHNY/20 18 : - 4 - : AUDIT REPORT AND THEREFORE UNDER THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE, NO PENALTY CAN BE LEVIED. THEREFORE, THE ORDER PASSED BY THE ASSESSING OFFICER AND CONFIRMED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) IS CANCELLED AND THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. 6 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IN I.T.A.NO. 3118 /CHNY/201 8 IS ALLOWED. ORDER PRONOUNCED ON 18 TH NOVEMBER, 2020 IN CHENNAI. SD/ - ( . ) ( S. JAYARAMAN ) /ACCOUNTANT MEMBER SD/ - ( ) ( V. DURGA RAO ) /JUDICIAL MEMBER / CHENNAI, / DATED: 18 TH NOVEMBER , 2020 IA , SR. P.S /COPY TO: 1. /APPE LLANT 2. /RESPONDENT 3. () /CIT(A) 4. /CIT 5. /DR 6. /GF