SURGUJA SEVA UNNATI SANSTHAN, SARGUJA (C.G) V. JOINT. CIT, RANGE- KORBA, KORBA(CG)

ITA 32/BIL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8940 (ITAT-RAIPUR)
• Duration Of Justice: 2 year(s) 11 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 30-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P CHAUDHARY
• Assessee Lawyers: G S AGRAWAL
• Keywords: Bonafide belief

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH , RAIPUR BEFORE : SHRI N.S.SAINI, A M & SHRI PAV AN KUMAR GADALE, J M ITA NO. 3 1 / RPR /20 1 5 (ASSESSMENT YEAR : 2009 - 10 ) WE CARE WELFARE SOCIETY, C/O AVINASH JAISWAL, TIWARI BUILDING ROAD, KEDARPUR, PO - AMBIKAPUR , DIST: SARGUJA (CG) V S JCIT, RANGE - KORBA, MAHANADI COMPLEX, NIHARIKA ROAD, KORBA(C.G.) P AN NO. : A A AFW 8858 L (APPELLANT ) .. TSEDNEPSER AND ITA NO. 32 /RPR/201 5 (ASSESSMENT YEAR : 2009 - 10 ) SURGUJA SEVA UNNATI SANSTHAN , C/O RAJIV KUMAR PATHAK , BHATTI RO AD , KEDARPUR, AMBIKAPUR, DIST: SARGUJA (CG) V S JCIT, RANGE - KORBA, MAHANADI COMPLEX, NIHARIKA ROAD, KORBA(C.G.) PAN NO. : A A BAS 5081 M (APPELLANT ) .. TSEDNEPSER ASSESSEE BY : SHRI G.S.AGRAWAL , AR REVENUE BY : SHRI O.P.CHAUDHARY , DR DATE OF HEARI NG : 1 8 / 01 /201 8 DATE OF PRONOUNCEMENT 18 / 01 /201 8 / O R D E R PER SHRI N.S.SAINI , A M : TH ESE ARE THE APPEALS FILED BY THE DIFFERENT ASSESSEE S AGAINST THE ORDER OF THE CIT(A ), BILASPUR , BOTH DATED 20.10.2014 FOR THE ASSESSMENT YEAR 2009 - 2010 . 2. THE SOLE GRIEVANCE OF BOTH THE ASSESSEE S IN THEIR RESPE CTIVE APPEALS IS THAT THE CIT(A) ERRED IN CONFIRMING THE PENALTY LEVIED U/S.272A(2)(E) OF THE ACT BY THE ASSESSING OFFICER AT RS.45,400/ - IN CASE OF WE CARE WELFARE SOCIETY AND RS.46,700/ - IN CASE OF SURGUJA SEVA UNNATI SANSTHAN FOR ASSESSMENT YEAR 2009 - 20 10. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A SOCIETY REGISTERED U/S.12AA OF THE INCOME TAX ACT, 1961 AND FILED RETURN OF INCOME FOR ASSESSMENT YEAR 2009 - 10 DISCLOSING INCOME AT NIL . ACCORDING TO THE AO, ITA NO. 31 &3 2 /RPR/201 5 2 THE ASSESSEE - WE CARE WELFARE SOCIETY , S HOULD HAVE FILED THE RETURN OF INCOME ON OR BEFORE SEPTEMBER, 2010 FOR ASSESSMENT YEAR 2009 - 2010 IN ACCORDANCE WITH THE PROVISIONS OF SECTION 139(4A) OR 139(4C) OF THE ACT. SINCE THE ASSESSEE FILED THE RETURN OF INCOME FOR ASSESSMENT YEAR 2009 - 2010 ON 28. 12.2010 , THEREFORE, THERE WAS A DELAY OF 454 DAYS. HENCE, HE LEVIED PENALTY U/S.272A(2)(E) OF THE ACT @100/ - PER DAY AT RS.45,400/ - . SIMILARLY THE AO OBSERVED THAT THE ASSESSEE - SARGUJA SEVA UNNATI SANSTHAN SHOULD HAVE FILED THE RETURN OF INCOME ON OR BEFO RE SEPTEMBER, 2010 FOR ASSESSMENT YEAR 2009 - 2010 IN ACCORDANCE WITH THE PROVISIONS OF SECTION 139(4A) OR 139(4C) OF THE ACT. SINCE THE ASSESSEE FILED THE RETURN OF INCOME FOR ASSESSMENT YEAR 2009 - 2010 ON 10.01.2011 , THEREFORE, THERE WAS A DELAY OF 467 DAYS . HENCE, HE LEVIED PENALTY U/S.272A(2)(E) OF THE ACT @100/ - PER DAY AT RS.4 6 , 700/ - . 4. BEFORE THE CIT(A) THE ASSESSEE SUBMITTED THAT THE ASSESSEE FILED RETURN OF INCOME DECLARING INC OME AT RS.NIL AND, THUS, THE INCOME IS BELOW THE TAXABLE LIMIT. THEREFORE, THE ASSESSEE HAD BONAFIDE BELIEF AS THE INCOME WAS BELOW THE TAXABLE LIMIT, THERE WAS NO OBLIGATION TO FILE THE RETURN OF INCOME. 5. ON APPEAL, T HE CIT(A) CONFIRMED THE PENALTY LEVIED BY THE ASSESSING OFFICER. 6. THE AR OF THE ASSESSEE REITERATED THE SUB MISSIONS MADE BEFORE THE LOWER AUTHORITIES. 7. ON THE OTHER HAND, THE DR SUPPORTED THE ORDERS OF LOWER AUTHORITIES. 8. WE FIND THAT THE FACTS NARRATED ABOVE ARE NOT IN DISPUTE THAT BOTH THE ASSESSEE S FILED RETURN OF INCOME FOR BOTH THE YEAR UNDER APPEAL S ITA NO. 31 &3 2 /RPR/201 5 3 SHOWING NIL INCOME, THUS, INCOME OF THE ASSESSEE WAS BELOW THE TAXABLE LIMIT AND, THEREFORE, BOTH THE ASSESSEE HAD BONAFIDE BELIEF THAT WHEN THE INCOME WAS BELOW THE TAXABLE LIMIT, THERE WAS NO OBLIGATION TO FILE THE RETURN OF INCOME. WE FIND THAT THE HON ' BLE SUPREME COURT IN THE CASE OF HINDUSTAN STEEL LTD. V THE STATE OF ORISSA , 83 ITR 26 , HAS HELD THAT FOR A TECHNICAL OR VENIAL BREACH OF THE PROVISION OF THE ACT , NO PENALTY IS TO BE LEVIED. IN VIEW OF THE ABOVE DECISION OF HONBLE SUPREME COURT IN THE CA SE OF HINDUSTAN STEEL LTD.(SUPRA), WE ARE OF THE CONSIDERED VIEW THAT THE ASSESSEE SOCIETY IS NOT LIABLE FOR PENALTY U/S.272A(2)(E) OF THE ACT FOR DELAY IN FILING THE RETURN OF INCOME. THEREFORE, WE CANCEL THE PENALTY LEVIED BY THE ASSESSING OFFICER OF RS . 45,400 / - IN CASE OF ASSESSEE - WE CARE WELFARE SOCIETY AND RS. 46,700/ - IN CASE OF ASSESSEE - SARGUJA SEVA UNNATI SANSTHAN FOR THE ASSESSMENT YEAR 2009 - 10. 9 . IN THE RESULT, APPEAL S FILED BY BOTH ASSESSEE S ARE ALLOWED . ORDER PRONOUNCED IN THE COURT ON THURSDAY , THE 18 TH DAY OF JANUARY, 2018 AT RAIPUR. SD/ - ( PAVAN KUMAR GADALE ) SD/ - (N. S. SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER RAIPUR ; DATED 18 / 01/2018 . . / PKM , SENIOR PRIVATE SEC RETARY / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR PRIVATE SECRETARY ) INCOME TAX APPELLATE TRIBUNAL, RAIPUR 1. / THE APPELLANT - 2. / THE RESPONDENT - 3. ( ) / THE CIT(A), 4. / CIT 5. , , RAIPUR / DR, ITAT , RAIPUR 6. / GUARD FILE. //TRUE COPY//