SURGUJA GYANODAYA ASSOCIATION, SURAJPUR (CG) V. JOINT. CIT, RANGE- KORBA, KORBA(CG)

ITA 33/BIL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8954 (ITAT-RAIPUR)
• Duration Of Justice: 2 year(s) 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 03-02-2015
• 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. 33 & 34 / RPR /20 1 5 (ASSESSMENT YEAR : 20 0 8 - 09 & 2009 - 10 ) SURGUJA GYANODAYA ASSOCIATION, OLD STATE BANK BUILDING, NEAR BENGALI CLUB, B ISHRAMPUR, SURAJPUR (CG V S JCIT, RANGE - KORBA, MAHANADI COMPLEX, NIHARIKA ROAD, KORBA(C.G.) P AN NO. : A A FTS 8947 K (APPELLANT ) .. TSEDNEPSER ASSESSEE BY : SHRI G.S.AGRAWAL , AR REVENUE BY : SHRI O.P.CHAUDHARY , DR DATE OF HEARING : 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 ASSESSEE AGAINST THE ORDER OF THE CIT(A ), BILASPUR , BOTH DATED 16.07.2013 FOR THE ASSESSMENT YEAR 20 0 8 - 200 9 & 2009 - 2010 . 2. THE SOLE G RIEVANCE OF THE ASSESSEE IN BOTH THE 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.54,600 / - FOR ASSESSMENT YEAR 2008 - 09 AND RS.18,100/ - FOR ASSESSMENT YEAR 2009 - 2010. 3. BRIEF FAC TS 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 2008 - 09 AND 2009 - 10 SHOWING NIL INCOME. ACCORDING TO THE AO, THE RETURN OF INCOME WAS REQUIRED TO BE FILED BY THE ASSESSEE ON OR BEFORE 30.09.2008 FOR ASSESSMENT YEAR 2008 - 09 AND ON OR BEFORE 30.09.2009 FOR THE ASSESSMENT YEAR 2009 - 10 AS PER PROVISIONS OF SECTION 139(4A) OR 139(4C) OF THE ACT. SINCE THE ASSESSEE FILED THE RETURN OF ITA NO. 33&34 /RPR/201 5 2 INCOME FOR ASSESSMENT YEAR 2008 - 09 O N 30.03.2010 AND FOR THE ASSESSMENT YEAR 2009 - 10 ON 30.03.2010, THERE WAS A DELAY OF 546 DAYS IN ASSESSMENT YEAR 2008 - 09 AND 181 DAYS IN ASSESSMENT YEAR 2009 - 10. HENCE, HE LEVIED PENALTY U/S.272A(2)(E) OF THE ACT @100/ - PER DAY AND LEVIED PENALTY OF RS .54,600/ - IN THE ASSESSMENT YEAR 2008 - 09 AND RS.18,100/ - IN ASSESSMENT YEAR 2009 - 10. 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 SU BMISSIONS 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 THE ASSESSEE FILED RETURN OF INCOME FOR BOTH THE YEARS UNDER APPEAL SHOWI NG NIL INCOME, THUS, INCOME OF THE ASSESSEE WAS BELOW THE TAXABLE LIMIT AND, THEREFORE, 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 SUPREM E 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 ITA NO. 33&34 /RPR/201 5 3 OF THE ABOVE DECISION OF HONBLE SUPREME COURT IN THE CASE OF HIN DUSTAN 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.54,600/ - FOR THE ASSESSMENT YEAR 2008 - 09 AND RS.18,100/ - FOR ASSESSMENT YEAR 2009 - 10. 9 . IN THE RESULT, BOTH APPEAL S FILED BY THE ASSESSEE 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 SECRETARY / 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//