VJTF EDUSERVICES LTD, MUMBAI V. ITO 9(3)(3), MUMBAI

ITA 4085/MUM/2013

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 2163 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 29-12-2015
• Assessment Year: 2011-2012
• Appeal Filed On: 21-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JEETENDRA KUMAR
• Assessee Lawyers: SHLOKA JAIN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH F, MUMBAI BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER ITA NO.4085/M/2013 ASSESSMENT YEAR: 2011-12 M/S. VJTF EDUSERVICES LTD. (ERSTWHILE VINAY JAINS TRAINING FORUM PVT. LTD.), 1 ST FLOOR, NEEL KANTH APARTMENT, RAMCHANDRA LANE, NEAR ALLAHABAD BANK, MALAD (W), MUMBAI - 64 PAN: AAACV8708P VS. INCOME TAX OFFICER, WARD 9(3)(3), MUMBAI (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : MS. SHLOKA JAIN, A.R. REVENUE BY : SHRI JEETENDRA KUMAR, D.R. DATE OF HEARING : 29.12.2015 DATE OF PRONOUNCEMENT : 29.12.2015 O R D E R PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 12.03.2013 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO ASSESSMENT Y EAR 2011-12. 2. THE ASSESSEE HAS AGITATED THE CONFIRMATION OF TH E LEVY OF PENALTY OF RS.19,119/- UNDER SECTION 221(1) OF THE ACT. AT TH E OUTSET, THE LD. A.R. OF THE ASSESSEE HAS EXPLAINED THAT IN THIS CASE THE ASSESS EE FILED RETURN OF INCOME, HOWEVER INADVERTENTLY THE SELF ASSESSED TAX WAS NOT PAID. WHEN THE ASSESSING OFFICER (HEREINAFTER REFERRED TO AS THE AO) ISSUED NOTICE UNDER SECTION 221(1) OF THE ACT, THE ASSESSEE REALIZED ITS MISTAKE AND P ROMPTLY PAID THE DUE TAX ALONG WITH INTEREST. HOWEVER, THE AO IMPOSED PENAL TY OF RS.19,119/- UNDER SECTION 221(1) OF THE ACT FOR NOT DEPOSITING THE TA X BEFORE THE DUE DATE OF FILING ITA NO.4085/M/2013 M/S. VJTF EDUSERVICES LTD. (ERSTWHILE VINAY JAINS TRAINING FORUM PVT. LTD.) 2 OF THE RETURN OF INCOME. THE LD. A.R. OF THE ASSES SEE HAS EXPLAINED THAT IN THE PAST THE ASSESSEE HAD NEVER COMMITTED ANY DEFAULT I N DEPOSITING THE TAX. THE TAX FOR THE YEAR UNDER CONSIDERATION COULD NOT BE D EPOSITED BECAUSE OF INADVERTENCE AS THE SAME ESCAPED THE ATTENTION OF T HE ASSESSEE. THE MOMENT, MATTER CAME TO THE KNOWLEDGE OF THE ASSESSEE IMMEDI ATELY THE TAX WAS DEPOSITED ALONG WITH INTEREST. HENCE, THE ASSESSEE MAY NOT BE TREATED AS ASSESSEE IN DEFAULT AND THAT THE PENALTY BE NOT IMP OSED. 3. CONSIDERING THE SUBMISSIONS OF THE LD. A.R., WE ACCEPT THE EXPLANATION GIVEN BY THE LD. A.R. THAT THERE WAS NO INTENTION T O DELAY THE PAYMENT OF TAX OR OTHERWISE TO AVOID IT. BECAUSE OF THE REASON THAT DUE TO SOME MISTAKE ON THE PART OF THE STAFF, THE TAX WAS NOT DEPOSITED IN DUE TIME BUT THE MOMENT MATTER CAME TO THE KNOWLEDGE OF THE ASSESSEE, THE TAX WAS IMMEDIATELY DEPOSITED ALONG WITH INTEREST. HENCE, UNDER THESE CIRCUMSTAN CES, WE DO NOT FIND IT A FIT CASE FOR LEVY OF PENALTY UNDER SECTION 221(1) OF TH E ACT. THE PENALTY IMPOSED IS THEREFORE ORDERED TO BE DELETED. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS HER EBY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 29.12.2015. SD/- SD/- (RAMIT KOCHAR) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 30.12.2015. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.