Shri Vinay Prakash Naik, Pune V. ITO, Wd.-5(3), Pune

ITA 386/PUN/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 56375 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 15-03-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANN KAPTHUAMA
• Section: 273B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE BEFORE SHRI I.C. SUDHIR (JM) AND SHRI D. KARUNAKARA RAO (AM) ITA NO. 386/PN/2010 (ASSTT. YEAR : 2006-07) SHRI VINAY PRAKASH NAIK , ... APPELLANT PROP. SAVALI ENTERPRISES, 890 SUKRAWAR PETH, SAHU CHOWK, PUNE-2. V. I.T.O, WARD 5(3) RESPONDENT PUNE APPELLANT BY : NONE RESPONDENT BY : MS. ANN KAPTHUAMA ORDER PER I.C. SUDHIR, JM THE ASSESSEE HAS QUESTIONED FIRST APPELLATE ORDER WHEREBY THE LD CIT(A) HAS UPHELD THE PENALTY LEVIED U/S. 271-D OF THE ACT AT RS.2,63,400/- BY THE A.O. 2. THE GRIEVANCE OF THE ASSESSEE IS ALSO THAT THE L D CIT(A) HAS LEVIED THE PENALTY ON THE ENTIRE AMOUNT WORKED OUT IN CONTRAVE NTION OF THE PROVISIONS OF SECTION 269-SS INSTEAD OF CALCULATING THE PENALTY ON THE AMOUNT EXCEEDING RS. 20,000/-. 3. THE LD. D.R. HAS TRIED TO JUSTIFY THE ORDERS OF THE AUTHORITIES BELOW. SHE SUBMITTED THAT NO BONAFIDE REASON WAS SHOWN BEFORE THE AUTHORITIES BELOW TO JUSTIFY THE VIOLATION OF THE PROVISIONS OF SECTION 269-SS. 4. HAVING GONE THROUGH THE ORDERS OF THE AUTHORITIE S BELOW, WE FIND THAT THE REASON SHOWN BY THE ASSESSEE FOR THE DEFAULT REMAIN ED THAT IT IS IN THE BUSINESS OF ITA . NO 386/PN/2010 SHRI VINAY PRAKASH NAIK A.Y. 2006-07 PAGE OF 2 2 LABOUR CONTRACT WHEREIN PAYMENT IS REQUIRED TO BE M ADE TO THE LABOURERS AS EARLIER AS POSSIBLE AND UNDER THIS PRESSURE, HE HAD TO TAKE CASH LOANS FOR MAKING THE PAYMENT TO THE LABOURERS, SINCE HE HAD NOT RECEIVED PAYMENT FROM THE EMPLOYERS IN TIME. THE AUTHORITIES BELOW DID NOT AGREE WITH THE REASON SHOWN AS SUFFICIENT TO JUSTIFY THE DEFAULT AND PENALTY HAS BEEN LEVIED. W E, HOWEVER, FEEL THAT THERE IS NO BASIS TO DOUBT THE ABOVE REASON SHOWN BY THE ASSESS EE FOR THE DEFAULT. WE, THUS, INVOKING THE PROVISIONS OF SECTION 273B OF THE ACT HOLD THAT THERE WAS SUFFICIENT REASON WITH THE ASSESSEE FOR THE DEFAULT. WE, ACC ORDINGLY, DIRECT THE A.O TO DELETE THE ADDITION OF RS.2,63,400/- MADE U/S. 271-D OF TH E ACT. THE GROUND IS, ACCORDINGLY, ALLOWED. 5. IN RESULT, APPEAL IS ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 10TH AUGUST 2011. SD/- SD/- ( D. KARUNAKARA RAO ) ACCOUNTANT MEMBER ( I.C. SUDHIR ) JUDICIAL MEMBER PUNE, DATED THE 10TH AUGUST, 2011 US COPY OF THE ORDER IS FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT-III, PUNE 4. THE CIT(A)- III, PUNE 5. THE D.R. B BENCH, PUNE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE