SHRI RAMESHWAR PRASAD GUPTA HOSPITAL & NEUROLOGY CENTRE PVT. LTD., KOTA V. ADDITIONAL COMMISSIONER OF INCOME TAX, KOTA

ITA 32/JPR/2018

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 9719 (ITAT-JAIPUR)
• Duration Of Justice: 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 10-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J C KULHARI JCIT A
• Assessee Lawyers: B V MAHESHWARI
• Keywords: Reasonable cause

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA-@ ITA. NO. 32/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2011-12 SHRI RAMESHWAR PRASAD GUPTA, HOSPITAL & NEUROLOGY CENTRE PVT. LTD., 1-KA-40, FIRST FLOOR, VIGYAN NAGAR, KOTA. CUKE VS. THE ACIT, RANGE-1, KOTA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AACCD 3130 B VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI B.V. MAHESHWARI (C.A.) JKTLO DH VKSJ LS @ REVENUE BY : SHRI J.C. KULHARI (JCIT) A LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 19/09/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 25/09/2018 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF LD. CIT(A), KOTA DATED 23.11.2017 FOR ASSESSMENT YEAR 2 011-12 WHEREIN HE HAS CONFIRMED THE LEVY OF PENALTY U/S 271E OF T HE I.T. ACT. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT THE ASSE SSING OFFICER VIDE HIS LETTER DATED 01.09.2015 HAS REFERRED THE CASE O F THE ASSESSEE FOR ITA NO. 32/JP/2018 SHRI RAMESHWAR PRASAD GUPTA VS. ACIT 2 IMPOSITION OF PENALTY U/S 271E OF THE ACT TO THE L D. ACIT, RANGE-1, KOTA STATING THAT THE ASSESSEE HAS REPAID THE LOAN/ DEPOSIT IN CASH TO DR. RAMESHWAR PRASAD GUPTA IN VIOLATION OF PROVISI ONS OF SECTION 269T OF THE ACT AMOUNTING TO RS. 1,00,000/-. THEREAFTER, BASED ON MATERIAL ON RECORD, THE LD ADD. CIT HAS HELD THAT THE ASSESS EE HAD REPAID THE ABOVE SAID LOAN/DEPOSIT IN CASH IN VIOLATION OF THE PROVISIONS OF SECTION 269T OF THE ACT WITHOUT ANY REASONABLE CAUSE. HE, T HEREFORE, LEVIED THE PENALTY U/S 271E OF THE ACT AMOUNTING TO RS. 1,00,0 00/-. 3. BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A) WHO HAS CONFIRMED THE SAID LEVY OF P ENALTY. AS PER THE LD. CIT(A), THERE WERE ENTRIES OF CASH PAID DURING THE YEAR AMOUNTING TO RS. 1,00,000/- WHICH CONSTITUTED REPAYMENT AS DEFIN ED U/S 269T AND THE SAME IS COVERED U/S 271E OF THE ACT AS NOT BONA FIDE COULD BE BROUGHT ON RECORD BY THE ASSESSEE FOR JUSTIFYING SU CH PAYMENT. 4. NOW, THE ASSESSEE IN APPEAL AGAINST THE SAID FI NDING OF THE LD. CIT(A). THE LD. AR HAS SUBMITTED THAT FIRSTLY, THE TRANSACTION IS NOT IN THE NATURE OF LOAN/DEPOSIT AND IT IS, THEREFORE, NO T A CASE OF REPAYMENT OF LOAN AT ALL. IT WAS SUBMITTED THAT IT IS THE PAY MENT MADE BY THE ASSESSEE AGAINST THE CREDIT BALANCE IN THE ACCOUNT OF DR. RAMESHWAR PRASAD GUPTA DIRECTOR TOWARDS HIS REMUNERATION, REN T ETC. IT WAS SUBMITTED THAT THE ASSESSEE COMPANY IS MAINTAINING TWO ACCOUNTS OF DR. RAMESHWAR PRASAD GUPTA, ONE CURRENT ACCOUNT IN WHICH ALL THE REGULAR TRANSACTIONS WERE ENTERED INCLUDING THE IMP UGNED TRANSACTION AND ANOTHER ACCOUNT CALLED UNSECURED LOAN ACCOUNT W HERE THERE ARE TRANSACTIONS OF REPAYMENT OF LOAN WHICH HAS BEEN DU LY PAID THROUGH ITA NO. 32/JP/2018 SHRI RAMESHWAR PRASAD GUPTA VS. ACIT 3 CHEQUE. IT WAS SUBMITTED THAT ON ANALYSIS OF THE CU RRENT ACCOUNT, IT MAY BE NOTED THAT THE AMOUNT OF RENT AND REMUNERATION P AYABLE TO DR. RAMESHWAR GUPTA WHICH HAS BEEN CREDITED PERIODI CALLY AND AGAINST THE SAME, THE IMPUNGED PAYMENT WAS MADE IN CASH. IT WAS ACCORDINGLY SUBMITTED THAT THE TRANSACTION IS THEREFORE, NOT IN THE NATURE OF LOAN/DEPOSIT AT FIRST PLACE AND THEREFORE, THERE IS NO VIOLATION OF SECTION 269T OF THE ACT AS CONTENDED BY THE LOWER AUTHORITI ES AND THEREFORE, THERE IS NO BASIS FOR LEVY OF PENALTY U/S 271E OF T HE ACT. 5. THE LD. DR IS HEARD WHO HAS RELIED ON THE FINDI NGS OF THE LOWER AUTHORITIES. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ON PERUSAL OF THE RECORD, WE F IND THAT THERE ARE TWO ACCOUNTS MAINTAINED BY THE ASSESSEE IN THE NAME OF DR. RAMESHWAR PRASAD GUPTA. IN THE FIRST ACCOUNT TITLED AS DR. RA MESHWAR GUPTA (CREDITOR), THERE ARE TRANSACTIONS IN THE NATURE OF RENT AND REMUNERATION PAYABLE TO DR. RAMESHWAR GUPTA AND THERE ARE TRAN SACTIONS BY WAY OF PAYMENT OF THESE EXPENSES BY WAY OF CHEQUE AS WELL AS THE IMPUNGED CASH PAYMENT ON 28.01.2011. FURTHER, THERE IS ANOTH ER ACCOUNT IN THE NAME OF DR. RAMESHWAR GUPTA (LOAN ACCOUNT) WHICH HA S OPENING BALANCE OF 9,18,780/- AND THERE ARE REPAYMENT TRANS ACTIONS WHICH WERE PAID THROUGH CHEQUE. IN LIGHT OF THE SAME, WE FIND MERIT IN THE CONTENTION OF THE LD. AR THAT THE FACTUM OF THE TRA NSACTION BEING IN THE NATURE OF LOAN/DEPOSIT HAS NOT BEEN ESTABLISHED BY THE REVENUE AND FACT ALSO SUGGESTS THAT WHAT HAS BEEN PAID BY THE A SSESSEE TO DR. REMESHWAR PRASAD IN CASH IS TOWARDS IS REMUNERATION AND THE RENT ITA NO. 32/JP/2018 SHRI RAMESHWAR PRASAD GUPTA VS. ACIT 4 PAYABLE TO HIM. IN THE LIGHT OF THE SAME, WE ARE OF THE VIEW THAT THE PROVISIONS OF SECTION 269T OF THE ACT ARE NOT ATTRA CTED IN THE INSTANT CASE AND THEREFORE, THERE IS NO BASIS FOR LEVY OF P ENALTY U/S 271E OF THE ACT. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 25/09/2018. SD/- SD/- FOT; IKY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 25/09/2018. *SANTOSH VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI RAMESHWAR PRASAD GUPTA, KOTA. 2. IZR;FKHZ@ THE RESPONDENT- ACIT, RANGE-1, KOTA. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE { ITA NO. 32/JP/2018} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR