Shri Ritesh Ramesh Contractor, Nani Daman V. The Income Tax Officer, Vapi Ward-4, Daman

ITA 3296/AHD/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5887 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-05-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2009-2010
• Appeal Filed On: 10-12-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Reasonable cause; Non compliance

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL , AHMEDABAD , SURAT CAMP BEFORE SHRI RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH , ACCOUNTANT MEMBER ./ ITA.NO. 3296 / AHD /201 4 / ASSTT. YEAR: 2009 - 2010 SHRI RITESH RAMESH CONTRACTOR, 535/14, NEAR SAI KRIPA - I, NR.OLD POLICE QUARTERS, KATHIRIA, NANI DAMAN - 396210. PAN NO.AFRPC0242G VS . INCOME TAX OFFICER, VAPI WARD - 4 DAMAN - 396210. (APPLICANT) (RESPONENT) ASSESSEE BY : SHRI RAJESH UPADHYAY , AR REVENUE BY : SHRI ASHISH POPHARE, SR.DR / DATE OF HEARING : 28 / 04 / 201 7 / DATE OF PRONOUNCEMENT: 17 / 05 /201 7 / O R D E R PER AMARJIT SINGH, ACCOUNTANT MEMBER : PRESENT APPEAL IS DIRECTED AT THE INSTANCE OF THE ASSESSEE AGAINST THE ORDER OF THE L D.CIT(A) - VALSAD DATED 01.10 .2014 PASSED FOR THE ASSTT.YEAR 2009 - 10 . THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL. (I) LD.CIT(A) VALSAD HAS ERRED IN LAW AND ON FACTS IN CONFIRMING PENALTY OF RS.40,000/ - LEVIED BY ITO, VAPI - WARD - 4, DAMAN U/S.271(1)(B) OF THE ACT. 2. IN THIS CASE RETURN O F INCOME DECLARING INCOME OF RS.2,94,520/ - WAS FILED ON 1 2/10/2009 . SUBSEQUENTLY THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY BY ISSUING NOTICE U/S.143(2) OF THE ACT . THE ASSESSING OFFICER HAS INITIATED PENALTY PROCEEDINGS U/S.271(1)(B) OF THE ACT AGAINST ASSESSEE BY ITA NO. 3296 /AHD/201 4 ASSTT. YEAR2009 - 10 2 STATING THAT ASSESSEE FAILED TO MAKE COMPLIANCE WITH THE NOTICES ISSUED U/S.142 (1) OF THE ACT. IN RESPONSE TO THE SHOW CAUSE NOTICE THE ASSESSEE STATED THAT SUCH NOTICES WERE NOT SERVED UPON HIM AND WANT ED MORE TIME TO VERIFY THE FACT TO SUBMIT FURTHER EXPLANATION . THE ASSESSING OFFICER HAS NOT ACCEPTED THE EXPLANATION OF THE ASSESSEE AND STATED THAT ALL NOTICES WERE SERVED UPON THE ASSESSEE . HE ALSO STATED THAT ASSESSEE HAS ALSO IN RESPONSE REQUESTED FOR ADJOURNMENT OF PROCEEDINGS . T HEREAFTER THE ASSESSING OFFICER STATED THAT ASSESSEE HAS NOT MADE COMPLIANCE TO THE NOTICES U/S.142 OF THE ACT ISSUED ON 30/06/2011, 25/08/2011,13/10/2011 AND 09/11/2011 AND LEVIED PENALTY OF RS.40,000/ - U/S.271(1)(B) OF THE ACT. 3. AGGRIEVED AGAINST THE DECISION OF ASSESSI NG OFFICER THE ASSESSEE PREFERRED APPEAL BEFORE LD.CIT(A). THE LD.CIT( A) HAS SUSTAINED THE PENALTY LEVIED BY THE ASSESSING OFFICER BY OBSERVING AS UNDER: I HAVE CAREFULLY CONSIDERED THE FACTS STATED BY THE ASSESSING OFFICER IN THE PENALTY ORDER AS WELL AS THE RIVAL SUBMISSIONS MADE BY THE AR OF THE APPELLANT. IT IS CLEAR C ASE OF NON COMPLIANCE OF STATUTORY NOTICES ISSUED U/S.142(1) OF THE ACT. IN THE EXPLANATION THE APPELLANT NO WHERE STATED THE REASONABLE CAUSE FOR NON - COMPLYING WITH THE NOTICES WHICH LEADS TO THE INFERENCE THAT THE APPELLANT FAILED IN THIS REGARD. I FIND THE PENALTY ORDER PASSED BY THE ASSESSING OFFICER AS PER LAW AND IT CALLS FOR NO INTERFERENCE THEREFORE THE PENALTY LEVIED U/S.271(1)(B) OF THE ACT AT RS.40,000/ - IS CONFIRMED. THE GROUND OF APPEAL OF THE APPELLANT IS DISMISSED. 4 . WE HAVE HEARD THE RIVA L CONTENTIONS PERUSED THE RECORDS PLACED BEFORE US. WE NOTICED THAT ASSESSEE EXPLAINED THAT NOTICES WERE NOT SERVED UPON HIM. WE OBSERVED THAT THE ASSESSEE HAS ALSO MAD E COMPLIANCE WITH SOME OF THE NOTICES . WE FURTHER OBSERVED THAT ASSESSING OFFICER HAS NOT CLEARLY INDICATED THE NOTICES TO WHICH THE ASSESSEE FAILED TO MAKE COMPLIANCE. AFTER ITA NO. 3296 /AHD/201 4 ASSTT. YEAR2009 - 10 3 CONSIDERING ALL THE FACTS AND CIRCUMSTANCES WE RESTRICT THE PENALTY U/S.271(1)(B) OF THE ACT TO THE AMOUNT OF RS.10,000 / - 5 . IN THE RESULT THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED . ORDER PRONOUNCED IN THE COURT ON 17 TH MAY , 2017 AT AHMEDABAD. SD/ - SD/ - ( RAJPAL YADAV ) JUDICIAL MEMBER ( AMARJIT SINGH ) ACCOUNTANT MEMBER TRUE COPY AHMEDABAD; DATED 17 / 05 /2017 MANISH / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , / DR, ITAT, 6. / GUARD FILE . / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD