ITO, CHURU V. Late Allahnor Balkhi Through, CHURU

ITA 396/JODH/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54444 (ITAT-JODHPUR)
• Duration Of Justice: 1 year(s) 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 15-12-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 17-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M N MAURYA
• Assessee Lawyers: KHALID
• Keywords: Reasonable cause
• Section: 68

Judgement Text

1 ITA 396-10 IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH JODHPUR. ( BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ) ITA NO. 396/JODH/2010 ASSTT. YEAR : 2006-07. THE INCOME-TAX OFFICER, VS. LATE ALLAHNOR BALKHI, WARD-2, THROUGH LEGAL HIER SMT. SARIFAN CHURU. BIDASAR, CHURU. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M.N. MAURYA RESPONDENT BY : SHRI KHALID DATE OF HEARING : 15.12.2011. DATE OF PRONOUNCEMENT : 16.12.2011 ORDER DATED : 16/12/2011. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY DEPARTMENT AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2006-07. 2. THE DEPARTMENT IS OBJECTING IN DELETING THE LEVY OF PENALTY UNDER SECTION 271D AT RS. 5,00,000/-. 3. ASSESSMENT IN THIS CASE WAS COMPLETED UNDER SECT ION 143(3). DURING THE ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTIC ED THAT ASSESSEE HAS TAKEN LOAN FROM SIX PARTIES ABOVE RS. 20,000/- IN CASH. THEREFORE, HE INITIATED PROCEEDINGS UNDER SECTION 269SS AND AFTER NOT FINDING THE EXPLANATION SATISFA CTORY, HE LEVIED PENALTY OF RS. 5 LAKHS 2 IN VIEW OF PROVISIONS OF SECTION 271D. IT WAS SUB MITTED BEFORE LD. CIT (A) THAT THE ASSESSEE IS A LEGAL HEIR WHOSE HUSBAND DIED ON 13.2 .2009. IT WAS ALSO SUBMITTED THAT SHE WAS NOT CONVERSANT WITH THE PROVISIONS OF LAW AND, THEREFORE, NOT ABLE TO EXPLAIN THE CASH CREDITS. FURTHER, EXPLANATION WAS FILED THAT HER H USBAND WAS A RESIDENT OF VILLAGE AND FOR BUSINESS NEED AS TO OBTAIN THE CONTRACT, CERTAIN LO ANS WERE TAKEN IN CASH. HOWEVER, NO ADDITION HAS BEEN MADE UNDER SECTION 68 MEANS THAT THE CASH CREDITS WERE GENUINE. AFTER CONSIDERING THE SUBMISSIONS AND PERUSING THE ORDER OF ASSESSING OFFICER, THE LD. CIT (A) WAS SATISFIED WITH THE EXPLANATION THAT THE AMOUNT IN CASH TAKEN WAS GENUINE AND WAS TAKEN UNDER BONA FIDE BELIEF. THE LD. CIT (A) FURT HER NOTED THAT THE DECEASED SHRI ALLANOOR BALKHI WHO IS RESIDENT OF A SMALL VILLAGE TOOK A CONTRACT AND FOR TAKING CONTRACT CERTAIN AMOUNTS WERE NEEDED IMMEDIATELY AND, THEREF ORE, THE CASH LOANS WERE TAKEN. IT WAS FOUND THAT SINCE THE PERSON WHO HAS OBTAINED TH E LOAN HAS DIED AND NO EXPLANATION CAN BE OBTAINED FROM THE LEGAL HEIR. THEREFORE, TH ERE WAS A REASONABLE CAUSE AND ACCORDINGLY HE CANCELLED THE LEVY OF PENALTY. 4. WE FIND NO INFIRMITY IN THE FINDING OF LD. CIT ( A) WHO HAS TAKEN ALL THE FACTS INTO CONSIDERATION THAT THE PERSON WHO TOOK THE LOAN HAS DIED AND LEGAL HEIR IS NOT WELL CONVERSANT WITH THE BUSINESS AFFAIRS AS TO WHY THE CASH LOAN WAS TAKEN. HOWEVER, A CONTRACT WAS TAKEN AND IMMEDIATELY FUNDS WERE REQUI RED AND, THEREFORE, SOME CASH LOANS WERE TAKEN. ALL THESE FACTS CONSTITUTE A REASONABL E CAUSE IN VIEW OF PROVISIONS OF SECTION 273 OF THE ACT. THEREFORE, WE HOLD THAT LD. CIT (A ) WAS JUSTIFIED IN CANCELING THE LEVY OF PENALTY. ACCORDINGLY, WE CONFIRM HIS ORDER. 5. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISMI SSED. 3 6. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 16. 12.2011. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JODHPUR, COPY FORWARDED TO :- THE ITO, WARD-2, CHURU. LATE ALLAHNOR BALKHI THROUGH L/H SMT. SARIFAN, BIDA SAR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 396/JODH/2010) BY ORDER, AR ITAT JODHPUR.