SUREKHA EXIM P.LTD ( EARLIER KNOWN AS SUREKHA HOLDING P.LTD), MUMBAI V. ACIT 2(3), MUMBAI

ITA 401/MUM/2010

AI Insights

The case revolves around the imposition of a penalty under Section 271B of the Income Tax Act by the Assessing Officer (AO) against Surekha Exim Pvt. Ltd. for allegedly failing to file a tax audit report as required under Section 44AB. The penalty of Rs. 1,00,000 was confirmed by the Commissioner of Income Tax (Appeals) [CIT(A)]. However, the appellant contested that the audit report was indeed filed, as evidenced by a letter dated October 29, 2005, which was acknowledged by the office of the Assistant Commissioner of Income Tax, Circle 2(3). The Tribunal, after reviewing the submissions and evidence, concluded that the audit report was filed on time, leading to the decision to delete the penalty.

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 142230 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Next Hearing Date: 14-04-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 15-01-2010
• Laws Referred To: Section 271B of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K SINGH
• Assessee Lawyers: NISHA GOPALANI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH I,MUMBAI BEFORE SHRI D.K. AGARWAL (JM) & SHRI T.R. SOOD (AM ) I.T.A. NO.401/MUM/2010 (A.Y. 2005-06) SUREKHA EXIM PVT. LTD. (EARLIER KNOWN AS SUREKHA HOLDINGS P.LTD.), D-1, SINDHU HOUSE, NANABHAI LANE, MUMBAI-400 001. PAN: AAACS7281E VS. ASST. COMMR. OF INCOME-TAX-2(3), 5 TH FLOOR, AAYKAR BHAVAN, M.K.ROAD, MUMBAI-400 020. APPELLANT RESPONDENT APPELLANT BY MS. NISHA GOPALANI. RESPONDENT BY SHRI S .K. SINGH. O R D E R PER T.R. SOOD, AM : IN THIS APPEAL, VARIOUS GROUNDS HAVE BEEN RAISED B UT THE ONLY ISSUE INVOLVED IS CONFIRMATION OF LEVY OF PENALTY U/S.271 B. 2. AFTER HEARING BOTH THE PARTIES, WE FIND THAT, AC CORDING TO THE AO, TAX AUDIT REPORT U/S.44AB WAS NOT FILED AND, THEREFORE, HE LE VIED A PENALTY OF RS.1,00,000/- U/S.271B, WHICH HAS BEEN CONFIRMED BY THE LD. CIT(A ). 3. BEFORE US, THE LD. COUNSEL OF THE ASSESSEE REFER RED TO PAGE-4 OF THE PAPER BOOK WHICH IS COPY OF A LETTER ADDRESSED TO DY. CI T, CIR. 2(3), IN WHICH IT IS STATED THAT TAX AUDIT REPORT IS BEING ENCLOSED AND THIS LETTER HAS BEEN RECEIVED BY THE OFFICE OF ACIT, CIRCLE 2(3), AND THE STAMP BEAR S THE DATE 30 TH OCT. 2005. THE LD. COUNSEL OF THE ASSESSEE FURTHER SUBMITTED THAT COPY OF THE AUDIT REPORT WAS FILED EVEN DURING ASSESSMENT PROCEEDINGS. ITA NO.401/M/10 SUREKHA EXIM P.LTD. 2 4. ON THE OTHER HAND, THE LD. D.R. STRONGLY RELIED ON PARA-6 OF THE CIT(A)S ORDER IN WHICH THE CIT(A), AFTER PERUSING THE ORDER SHEET OF ASSESSMENT PROCEEDINGS, NOTICED THAT ATTENTION OF ASSESSEE WAS INVITED FOR NOT FILING THE AUDIT REPORT. HOWEVER, HE DID NOT DENY THE AUTHENTICITY O F LETTER DATED 29-10-2005 WHICH HAS BEEN DULY ACKNOWLEDGED BY THE OFFICE OF A CIT. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND FIN D THAT PERHAPS THE AUDIT REPORT WAS NOT FILED ALONG WITH THE RETURN BUT THE SAME HAS BEEN FILED VIDE LETTER DATED 29-10-2005 WHICH MEANS THE AUDIT REPORT WAS C LEARLY FILED BEFORE THE DUE DATE OF FILING. IN VIEW OF THIS FACT, THE LEVY OF P ENALTY IS NOT JUSTIFIED AND, THEREFORE, WE SET ASIDE THE ORDER OF CIT(A) AND DEL ETE THE PENALTY. 6. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED ON THE 24TH DAY OF JUNE, 20 11. SD/- SD/- (D.K. AGARWAL) (T.D. SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI: 24TH JUNE , 2011. NG: COPY TO : 1. DEPARTMENT. 2.ASSESSEE. 3 CIT(A)-6,MUMBAI. 4 CIT-2,MUMBAI. 5.DR,I BENCH,MUMBAI. 6.MASTER FILE. (TRUE COPY) BY ORDER, ASST.REGISTRAR, ITAT, MUMBAI. ITA NO.401/M/10 SUREKHA EXIM P.LTD. 3 DETAILS DATE INITIALS DESIGNA TION 1. DRAFT DICTATED ON 14-06-11 SR.PS/ 2. DRAFT PLACED BEFORE AUTHOR 16-06-11 SR.PS/ 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/ AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/ 6. KEPT FOR PRONOUNCEMENT ON SR.PS/ 7. FILE SENT TO THE BENCH CLERK SR.PS/ 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 9. DATE ON WHICH FILE GOES TO THE AR 10. DATE OF DISPATCH OF ORDER