M/s.St.Mary's Hotels P. Ltd, Kottayam V. The ADCIT, Thiruvalla

ITA 376/COCH/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5504 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 12-06-2017
• Assessment Year: 2006-2007
• Appeal Filed On: 01-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: A DHANRAJ
• Keywords: Reasonable cause
• Section: 273B

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI P. K. BANSAL, VICE PRESIDENT AND SHRI GEORGE GEORGE K., JUDICIAL MEMBER ITA NO .376/COCH/2016 ASSESSMENT YEAR:2006-07 ADDL.C.I.T., THIRUVALLA RANGE, THIRUVALLA. VS ST. MERYS HOTELS PVT. LTD., WINDSOR CASTLE, NATTAKAM KODIMATHA, KOTTAYAM. PAN:AAKCS 4691 L (RESPONDENT) (APPELLANT) NONE APPELLANT BY SHRI A. DHANRAJ, SR. D.R. RESPONDENT BY 05/10/2017 DATE OF HEARING 05/10/2017 DATE OF PRONOUNCEMENT ORDER PER P. K. BANSAL, V.P. THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) DATED 30/06/2016 BY WHICH THE CIT(A) HAS CON FIRMED THE PENALTY LEVIED BY THE ASSESSING OFFICER ON THE ASSESSEE FOR RS.5,00,000/- DUE TO THE VIOLATION OF SECTION 269SS OF THE ACT. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE, EVEN TH OUGH THE CASE WAS ADJOURNED FOR TODAY ON THE REQUEST OF THE ASSES SEE ON 27/09/2017. WE, THEREFORE, DECIDED TO DISPOSE OF THE APPEAL OF THE ASSESSEE AFTER HEARING LEARNED D.R. AND CONSIDERING THE MATERIAL A VAILABLE ON RECORD. 2 2. WE HAVE HEARD THE SUBMISSIONS OF LEARNED D. R., CAREFULLY CONSIDERED THE SAME ALONG WITH THE ORDERS OF THE TA X AUTHORITIES BELOW. WE NOTED THAT THE ASSESSING OFFICER LEVIED THE PENA LTY UNDER SECTION 271D ON THE ASSESSEE BECAUSE THE ASSESSEE HAS VIOLA TED THE PROVISIONS OF SECTION 269SS AS THE MANAGING DIRECTOR OF THE COMPA NY MADE THE REPAYMENT OF RS.5,00,000/- IN CASH TO KOTTAYAM DIST RICT CO-OPERATIVE BANK LIMITED, ACCOUNT NO. 1/99. WHEN THE MATTER WE NT BEFORE THE CIT(A), THE CIT(A) CONFIRMED THE PENALTY IGNORING T HE FACT THAT THE ASSESSEE HAS TAKEN THE PLEA BEFORE THE ASSESSING OF FICER THAT HE WAS PREVENTED BY REASONABLE CAUSE AS THE MD OF THE COMP ANY HAS TO DIRECTLY DEPOSIT A SUM OF RS.5,00,000/- IN CASH INTO THE ACC OUNTOF KOTTAYAM DISTRICT CO-OPERATIVE BANK LIMITED ACCOUNT NO. 1/99 AS PER THE DIRECTION OF THE COURT OUT OF HIS OWN SOURCES. WE NOTED THAT THE PROVISION OF SECTION 271D FOR LEVYING THE PENALTY ARE SUBJECT TO THE PROVISIONS OF SECTION 273B. SECTION 273B STIPULATES THAT IN CASE THE ASSESSEE HAS A REASONABLE CAUSE THEN NO PENALTY SHALL BE IMPOSABLE ON THE ASSESSEE. IN THIS CASE THE ASSESSEE COMPANY HAS TO DEPOSIT THE A MOUNT TOWARDS THE REPAYMENT OF THE TERM LOAN ACCOUNT MAINTAINED WITH KOTTAYAM DISTRICT CO-OPERATIVE BANK LIMITED AS PER THE DIRECTION OF T HE COURT. THE PAYMENT ON BEHALF OF THE COMPANY WAS MADE BY THE MD FROM HI S OWN SOURCES IN CASH TO THE BANK AS IT WAS IMMEDIATELY REQUIRED TO BE MADE. THE GENUNITY OF THE TRANSACTION HAS NOT BEEN DOUBTED BY THE ASSESSING OFFICER. EXCEPT THE SAID SUM OF RS.5,00,000/-, THE REST OF THE PAYMENT AMOUNTING TO RS.50,00,000/- WAS REMITTED INTO THE T ERM LOAN ACCOUNT OF THE BANK BY THE ASSESSEE COMPANY ONLY THROUGH CHEQU E. IN OUR OPINION, DUE TO THE EXIGENCIES OF THE CIRCUMSTANCES AND THE ORDER OF THE COURT, THE ASSESSEE WAS BOUND TO MAKE THE PAYMENT IMMEDIATELY AND THEREFORE, THE ASSESSEE WAS PREVENTED BY REASONABLE CAUSE. WE ACC ORDINGLY HOLD THAT 3 THIS IS NOT A FIT CASE TO LEVY THE PENALTY. WE ACC ORDINGLY DELETE THE PENALTY LEVIED UNDER SECTION 271D. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 05/10/2017) SD/. SD/. (GEORGE GEORGE K.) (P. K. BANSAL) JUDICIAL MEMBER VICE PRESIDENT DATED:05/10/2017 *SINGH COPY OF THE ORDER FORWARDED TO : 1.THE APPELLANT 2.THE RESPONDENT. 3.CONCERNED CIT 4.THE CIT(A) 5. D.R., I.T.A.T., COCHIN ASSTT. REGISTRAR