Sub Registrar Sardarpur, Dhar, Dhar V. The Director of Income Tax (1 & c1), Bhopal

ITA 332/Ind/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 7154 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-10-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 17-10-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 23-04-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S N AGRAWAL
• Assessee Lawyers: RAJEEB JAIN
• Keywords: Reasonable cause; Set aside
• Section: 273B; 201; 274

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE HON'BLE KUL BHARAT, JUDICIAL MEMBER AND HON'BLE MANISH BORAD, ACCOUNTANT MEMBER ITA NO.332/IND/2018 ASSESSMENT YEAR 2015-16 REVENUE BY S HRI S.N. AGRAWAL, CA ASSESSEE BY SHRI RAJEEB JAIN, SR. DR DATE OF HEARING 17 . 1 0 .2019 DATE OF PRONOUNCEMENT 22 . 10 .2019 O R D E R PER MANISH BORAD, AM. THIS APPEAL IS FILED AT THE INSTANCE OF THE ASSESSE E PERTAINING TO ASSESSMENT YEAR 2015-16 AND IS DIRECTED AGAINST THE ORDER OF LD. DIRECTOR OF INCOME TAX(I&CI) (IN SHORT DIT(I&CI), BHOPAL DATED 19.12.2017 FRAMED U/S 271FA R.W.S. 274 OF THE INCO ME TAX ACT 1961(IN SHORT THE ACT). 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF AP PEAL; SUB REGISTRAR SARDARPUR , O/O SUB REGISTRAR SARDARPUR, TAHSIL OFFICER DHAR-454111 VS. DIRECTOR OF INCOME TAX (I&CI), BHOPAL ( APPELLANT ) (RESPONDENT ) T AN NO. BPLS07417E SUB REGISTRAR SARDARPUR ITA NO.332/IND/2018 2 THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AND IN LAW, THE LEARNED DIT(I&CI) HAS ERRED IN LEVYING PENALTY U/S 271FA OF THE ACT OF RS.351500/- WITHOUT PROPERLY APPRECIATING THE FACT S OF THE CASE. THE APPELLANT CRAVES, LEAVE TO ADD, ALTER OR MODIFY THE GROUNDS OF APPEAL AS TAKEN BY IT. 3. FROM PERUSAL OF RECORD WE FIND THAT THE INSTANT APPEAL IS DELAYED BY 42 DAYS. REQUEST HAS BEEN MADE FOR CONDONATION O F DELAY. AFFIDAVIT HAS BEEN FILED BY EX-SUB-REGISTRAR SARDAR PUR, DIST. DHAR M.P., MR. BALUSINGH SASTIYA. IN THE AFFIDAVIT REASO N HAS BEEN PROVIDED FOR THE DELAY IN FILING THE APPEAL. WE SET ASIDE THE REASON IN THE AFFIDAVIT WHICH IN OUR VIEW WAS A REASONABLE CAUSE FOR THE SAID DELAY. WE, THEREFORE, CONDONED THE DELAY OF 42 DAYS AND ADMIT THE APPEAL FOR HEARING. 4. BRIEFLY STATED FACTS AS CULLED OUT FROM THE REC ORDS ARE THAT THE ASSESSEE IS LOCAL AUTHORITY UNDER THE STATE GOVERNM ENT OF MADHYA PRADESH IN THE NAME OF OFFICE OF SUB REGISTRAR SARD ARPUR, DHAR. AS PER THE PROVISIONS OF SECTION 285BA OF THE ACT THE ASSESSEE IS REQUIRED TO SUBMIT A STATEMENT IN FORM 61B FOR EVER Y FINANCIAL YEAR BY 31 ST MAY OF FOLLOWING THAT YEAR. IN FINANCIAL YEAR 201 4-15 THE DUE DATE OF FILING OF INFORMATION IN PRESCRIBED FOR M NO.61B WAS SUB REGISTRAR SARDARPUR ITA NO.332/IND/2018 3 31.5.2015. THIS DATE WAS EXTENDED BY THE INCOME TAX DEPARTMENT TO 10.9.2015. THE ASSESSEE FAILED TO FILE THE ANNU AL INFORMATION RETURN (AIR) AS REQUIRED AS PER THE PROVISIONS OF S ECTION 285BA. SHOW CAUSE NOTICE WAS ISSUED BY THE LD. DIRECTOR OF INCOME TAX (I&CI) ON 26.11.15 TO FILE NECESSARY INFORMATION LA TEST BY 15.12.2015 BUT NO COMPLIANCE WAS RECEIVED. AGAIN N OTICE WAS ISSUED ON 31.03.2016 U/S 271FA R.W.S. 274 OF THE AC T FOR LEVYING PENALTY FOR NON FILING OF THE INFORMATION. NONE AT TENDED ON THE DATE OF HEARING. LAST OPPORTUNITY WAS GIVEN TO APPEAR O N 17.11.2017 AND THE ASSESSEE AGAIN FAILED TO COMPLY WITH THE N OTICE. LD. DIRECTOR OF INCOME TAX (I&CI) ACCORDINGLY LEVIED TH E PENALTY U/S 271FA OF THE ACT @RS.500/- FOR THE PERIOD OF DELAY OF 703 DAYS AND COMPUTED THE PENALTY AT RS.3,51,500/-. AGGRIEVED A SSESSEE IS NOW IN APPEAL BEFORE THE TRIBUNAL. 5. LD. COUNSEL FOR THE ASSESSEE REFERRING TO THE WR ITTEN SUBMISSIONS PLACED ON RECORD SUBMITTED THAT NECESSA RY INFORMATION WAS PROVIDED TO THE TAX PRACTITIONER AT DHAR FOR FI LING THE ANNUAL INFORMATION REPORT BUT THE SAME WAS NOT FILED BY HI M AND THIS WAS SUFFICIENT REASON FOR NON-FURNISHING OF ANNUAL INFO RMATION REPORT SUB REGISTRAR SARDARPUR ITA NO.332/IND/2018 4 WITHIN THE PRESCRIBED TIME RELIANCE WAS PLACED ON F OLLOWING DECISIONS: I. DURGAPUR STEEL PEOPLES COORPORATIVE BANK LTD. VS . DIT(I & CI), KOLKATA (2016) 74 TAXMANN.COM 97 (KOLKATA-TIRB.) II. SUB-REGISTRAR, ALMORA VS. DIT (I & CI), KANPUR (ITANO.480/LKW/2017) (LUCKNOW TRIBUNAL) III. SUB-REGISTRAR, BAVLA VS. DIT(I & CI), AHMEDABA D (ITANO.1407/AHD/2016)(AHMEDABAD TRIBUNAL) IV. SUB-REGISTRAR, DHANSURA VS. DIT(I & CI), AHMEDA BAD (ITANO.1427,1428 & 1429/AHD/2016)(AHMEDABAD TRIBUNA L) 6. RELIANCE WAS ALSO PLACED ON THE DECISION OF COOR DINATE BENCH IN THE CASE OF SUB-REGISTRAR JAORA, VS. DIT(I & CI), ITANO.108/IND/2018 DATED 16.05.2019. 7. WE FIND THAT SIMILAR SET OF FACT IN THIS ISSUE C AME UP BEFORE US IN THE CASE OF SUB-REGISTRAR JAORA, VS. DIT(I & CI),(S UPRA) WE FIND, WE HAVE PARTLY SUSTAINED THE PENALTY AT RS.9,700/- AS AGAINST PENALTY LEVIED AT RS.3,51,500/- OBSERVING AS FOLLOWS: 6. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. THE ASSESSEE IS A LOCAL AUTHORITY CONTR OLLED BY STATE GOVERNMENT OF MADHYA PRADESH AND CARRIES OUT THE WO RK OF REGISTRATION OF SUB REGISTRAR SARDARPUR ITA NO.332/IND/2018 5 THE DOCUMENTS PERTAINING TO TRANSFER OF IMMOVEABLE PROPERTIES. THE ASSESSEE IS COVERED UNDER THE LIST OF PERSONS PROVI DED U/S 285BA SUB SECTION (I) OF THE ACT AND IS UNDER OBLIGATION TO F URNISH AIR FOR THE FINANCIAL TRANSACTION OR REPORTABLE ACTION IN FORM NO.61B. A S PER PROVISIONS OF SECTION 285BA(II) OF THE ACT ASSESSEE WAS REQUIRED TO FURNISH STATEMENT IN FORM NO.61B FOR EVERY FINANCIAL YEAR BY 31 ST MAY OF THE FOLLOWING YEAR. THE DUE DATE FOR FINANCIAL YEAR 2014-15 WAS 31.5.20 15 WHICH WAS SUBSEQUENTLY EXTENDED TO 10.12.2015. THE ASSESSEE FAILED TO FILE THE INFORMATION BY 10.5.2016. NOTICES WERE ISSUED BY T HE REVENUE AUTHORITIES TO FILE THE DETAILS LATEST BY 15.12.2015 BUT NO COM PLIANCE WAS MADE. THEREAFTER SHOW CAUSE NOTICE U/S 271FA R.W.S. 274 O F THE ACT WAS ISSUED ON 31.3.2016 FOR IMPOSING THE PENALTY FOR THE LAPSE IN NOT FILING THE ANNUAL INFORMATION REPORT BUT THERE WAS NO COMPLIANCE TO T HESE NOTICES. ASSESSEE ALSO FAILED TO APPEAR ON DATES FIXED FOR HEARING ON 17.11.2017 AND 21.12.2017. FOR THIS REASON PENALTY OF RS.3,51, 500/- WAS WORKED OUT @ RS.500/- FOR THE DELAY OF 703 DAYS (FROM 16.12.20 15 TO 17.11.2017). 7. WE OBSERVE THAT THE AMOUNT OF PENALTY IS COMPUTE D AS PER THE PROVISIONS OF SECTION 271FA OF THE ACT WHICH PROVID ES THAT BEFORE 1.04.2018 PENALTY OF RS.100/-PER DAY MAY BE CHARGE D FOR NUMBER OF DAYS DELAY. SECTION 273B OF THE ACT PROVIDES FOR NOT LEVYING PENALTY IN CERTAIN CASES IF THE ASSESSEE PROVES THAT THERE WAS A REASONABLE CAUSE FOR THE FAILURE. THIS SECTION ALSO REFERS TO THE PENAL TY OF SECTION 271FA OF THE ACT. REFERENCE WAS MADE TO VARIOUS CORRESPONDENCES WITH THE CHIEF SECRETARY, GOVT. OF MADHYA PRADESH, DEPARTMENT OF C OMMERCIAL TAXES AND CHIEF COMMISSIONER OF INCOME TAX AS WELL AS SECRETA RY, FINANCE DEPARTMENT OF REVENUE WHICH TALKS ABOUT THE TECHNIC AL PROBLEM DUE TO WHICH NON INTEGRATION OF THE DEPARTMENTS PORTAL WIT H THE INCOME TAX DEPARTMENTAL PORTAL FOR PAN AUTHENTICATION WAS NOT ACHIEVED. THIS PROBLEM WAS SOLVED AT LATER STAGE AND FINALLY ASSES SEE FILED ANNUAL INFORMATION REPORT FOR FINANCIAL YEAR 2014-15 ON 14 .12.2017. CERTAINLY SUB REGISTRAR SARDARPUR ITA NO.332/IND/2018 6 THERE WAS A DELAY BUT THERE WAS REASONABLE CAUSE FO R SUCH DELAY. 8. HOWEVER LOOKING TO THE FACT THAT THE ASSESSEE HA S NOT GIVEN ANY REPLY TO THE NUMEROUS NOTICES ISSUED BY THE INCOME TAX DEPARTMENT DELETING TOTAL PENALTY WILL NOT BE A GOOD MESSAGE T O THE VARIOUS GOVERNMENT DEPARTMENTS WHO ARE BOUND TO SUPPLY THE INFORMATION TO THE INCOME TAX DEPARTMENT WHICH PER SE HELPS IN CHECKIN G THE TAX EVASION AS WELL AS ASSESSING THE CORRECT INCOME OF VARIOUS PER SONS. WE NOTICE THAT THE ASSESSING AUTHORITY HAS COMPUTED THE PENALTY @R S.500/- PER DAY WHICH WAS CHANGED FROM RS.100/- TO RS.500/- W.E.F. 1.4.2018, THEREFORE THE PENALTY IF ANY HAS TO BE COMPUTED @RS.100/- PER DAY. FURTHER WHEN THE ASSESSEE DID NOT APPEAR ON 15.12.2015 WHY THE ACTION WAS NOT TAKEN AGAINST THE ASSESSEE, THE REASON IS BEST KNOWN TO T HE REVENUE AUTHORITIES WHO WAITED FOR ALMOST 2 YEARS TO COMPUTE THE PENALT Y. FROM 10.9.2015 TO 15.12.2015 A TOTAL NUMBER OF DAYS FOR THE FAILURE O N THE PART OF THE ASSESSEE IS 97 DAYS. IN OUR CONSIDERED VIEW, TOTALI TY OF THE FACTS AND IN THE INTEREST OF JUSTICE AND FAIR TO BOTH THE PARTIES WE HOLD THAT SUSTAINING THE PENALTY OF RS.9700/- (97 DAYS X RS.100/- PER DAY) O N THE ASSESSEE WILL BE JUSTIFIED AND IT WILL BE A MESSAGE TO THE GOVERNMEN T AUTHORITIES, SO THAT IN FUTURE SUCH CASUAL APPROACH SHOULD NOT BE TAKEN AND COMPLIANCE TO THE STATUTORY REQUIREMENTS INCLUDING REPLY OF NOTICES B Y INCOME TAX DEPARTMENT SHOULD BE ADHERED TO. WE ACCORDINGLY S USTAIN PENALTY OF RS.9,700/- AND DELETE THE REMAINING AMOUNT OF PENAL TY OF RS.3,41,800/- AND PARTLY ALLOW THE ASSESSEES APPEAL. 8. PER CONTRA LD. DEPARTMENTAL REPRESENTATIVE VEHEM ENTLY ARGUED AND SUPPORTING THE ORDER OF LD. DIRECTOR OF INCOME TAX (I&CI). HE ALSO SUBMITTED THAT THERE WAS NO COMPLI ANCE TO THE NUMBER OF NOTICES ISSUED TO THE ASSESSEE WHICH SHOW S THE CASUAL SUB REGISTRAR SARDARPUR ITA NO.332/IND/2018 7 APPROACH OF THE ASSESSEE TOWARDS THE NOTICES ISSUE D BY INCOME TAX DEPARTMENT. 9. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. THE ASSESSEE IS A LOCAL AUTHORIT Y CONTROLLED BY STATE GOVERNMENT OF MADHYA PRADESH AND CARRIES OUT THE WORK OF REGISTRATION OF THE DOCUMENTS PERTAINING TO TRANSFE R OF IMMOVEABLE PROPERTIES. THE ASSESSEE IS COVERED UNDER THE LIST OF PERSONS PROVIDED U/S 285BA SUB SECTION (I) OF THE ACT AND I S UNDER OBLIGATION TO FURNISH AIR FOR THE FINANCIAL TRANSA CTION OR REPORTABLE ACTION IN FORM NO.61B. AS PER PROVISIONS OF SECTIO N 285BA(II) OF THE ACT ASSESSEE WAS REQUIRED TO FURNISH STATEMENT IN FORM NO.61B FOR EVERY FINANCIAL YEAR BY 31 ST MAY OF THE FOLLOWING YEAR. THE DUE DATE FOR FINANCIAL YEAR 2014-15 WAS 31.5.2015 WHICH WAS SUBSEQUENTLY EXTENDED TO 10.09.2015. THE ASSESSEE FAILED TO FILE THE INFORMATION BY 10.9.2015. NOTICES WERE ISSUED BY THE REVENUE AUTHORITIES TO FILE THE DETAILS LATEST BY 15.12.201 5 BUT NO COMPLIANCE WAS MADE. THEREAFTER SHOW CAUSE NOTICE U/S 271FA R.W.S. 274 OF THE ACT WAS ISSUED ON 31.3.2016 FOR IMPOSING THE PENALTY FOR THE LAPSE IN NOT FILING THE ANNUAL INFO RMATION REPORT BUT SUB REGISTRAR SARDARPUR ITA NO.332/IND/2018 8 THERE WAS NO COMPLIANCE TO THESE NOTICES. ASSESSEE ALSO FAILED TO APPEAR ON DATES FIXED FOR HEARING ON 17.11.2017 AND 21.12.2017. FOR THIS REASON PENALTY OF RS.3,51,500/- WAS WORKED OUT @ RS.500/- FOR THE DELAY OF 703 DAYS (FROM 16.12.2015 TO 17.11.2017). 10. SINCE THE FACTS AND FIGURES HAVE BEEN RECENTLY ADJUDICATED BY US IN THE CASE OF SUB-REGISTRAR JAORA, VS. DIT(I & CI) ,(SUPRA) REFERRED ABOVE, WE APPLYING THE SAME DECISION ON THE FACTS O F THE GIVEN CASE, RESTRICT THE PENALTY U/S 271FA OF THE ACT AT RS.9,7 00/- AND DELETE THE REMAINING AMOUNT OF PENALTY OF RS. 3,51,500/- A ND PARTLY ALLOWED THE ASSESSEES APPEAL. 11. IN THE RESULT THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 22.10.2 019. SD/- SD/- ( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER / DATED : 22 ND OCTOBER, 2019 PATEL/PS COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER ASSISTANT REGISTRAR, ITAT, INDORE