ANKUSH RAMAJI KADU, Nagpur V. ITO, WARD-6(2), Nagpur

ITA 425/NAG/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93428 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 04-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C W AWGULKAR
• Assessee Lawyers: RAMESH P CHANDEKAR
• Keywords: Reasonable cause
• Section: 143(3)

Judgement Text

1 ITA NO. 425/NAG/2013. IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. I.T. A. NO. 425/NAG/2013 ASSESSMENT YEAR : 200 7 - 08 SHRI ANKUSH RAMAJI KADU, THE INCOME - TAX OFICER, 118, GURU TEJ BAHADUR NAGAR, V/S. WARD - 6(2), NAGPUR. NARI ROAD, NAGPUR. PAN AIDPK6060P (APPELLANT) RESPONDENT. APPELLAN T BY : SHRI RAMESH P. CHANDEKAR. RESPONDENT BY : SHRI C.W. AWGULKAR. DATE OF HEARING : 2 7 - 05 - 2015 DATE OF PRONOUNCEMENT : 10 TH JULY, 2015. O R D E R PER SHRI SHAMIN YAHYA, A.M . THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(APPEALS) - II, NAGPUR DATED 11 - 09 - 2013 AND PERTAINS TO ASSESSMENT YEAR 2007 - 08. THE ISSUE RAISED IS THAT THE LEARNED CIT(APPEALS) ERRED IN CONFIRMING THE PENALTY OF ` .25,000/ - UNDER SECTION 271 A OF THE I.T. ACT. 2. IN THIS CASE THE RETURN OF INCOME FOR ASSESSMENT YEAR 2007 - 08 DECLARING INCOME OF ` .95,940/ - WAS FILED ON 17 - 04 - 2007. ASSESSMENT IN THIS CASE WAS 2 ITA NO. 425/NAG/2013. FINALIZED UNDER SECTION 143(3) OF THE ACT ON 21 - 12 - 2009 COMPUTING THE TOTAL INCOME AT ` .5,93,688/ - . SINCE THE APPELL ANT HAD NOT MAINTAINED BOOKS OF ACCOUNT AS PER THE PROVISIONS OF SECTION 44AA, PENALTY PROCEEDINGS UNDER SECTION 271A WERE INITIATED. DURING THE COURSE OF PENALTY PROCEEDINGS IT WAS EXPLAINED BY THE APPELLANT THAT HE HAD AGREED FOR THE ADDITION TO ITS INCO ME AS HE DID NOT WANT TO GET INTO ANY LITIGATION AND TO BUY PEACE OF MIND AND THAT AT THE TIME OF FINAL HEARING HE HAD DISCUSSED WITH THE ASSESSING OFFICER THAT NO PENALTY SHOULD BE LEVIED. IT WAS FURTHER STATED THAT NO BOOKS OF ACCOUNT HAVE BEEN PREPARED BY THE APPELLANT. IT WAS FURTHER SUBMITTED THAT SINCE THE APPELLANT HAD MET WITH SERIOUS ACCIDENT AT THE TIME OF HEARING, PENALTY IMPOSED UNDER SECTION 271A MAY BE DROPPED. HOWEVER, THE ASSESSING OFFICER WAS NOT SATISFIED. HE LEVIED A PENALTY OF ` .25,000/ - UNDER SECTION 271A 3. BEFORE THE LEARNED CIT(APPEALS) THE ASSESSEE SUBMITTED MEDICAL CERTIFICATE AND STATED THAT HE WAS SUFFERING FROM AMNESIA AND WAS NOT ABLE TO REMEMBER DUE TO HEAD INJURY. HOWEVER, THE CIT(APPEALS) DID NOT FIND THE EXPLANATION CONVINC ING. HE CONFIRMED THE LEVY OF PENALTY OF ` .25,000/ - . 4. AGAINST THE ABOVE ORDER, THE ASSESSEE IS IN APPEAL BEFORE US. 5. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE RECORDS. IT HAS BEEN REITERATED THAT THE ASSESSEE WAS ILL THROUGHOUT THE PREVIOUS YEAR DUE TO AMNESIA AND MAY NOT BE ABLE TO REMEMBER THE PAST AND PRESENT DUE TO HEAD INJURY. IT HAS BEEN SUBMITTED THAT ALL CERTIFICATES REGARDING MEDICAL TREATMENT HAVE BEEN FILED BEFORE THE LEARNED CIT(APPEALS). 6. PER CONTRA, THE LEARNED D.R. RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 3 ITA NO. 425/NAG/2013. 7. UPON CAREFUL CONSIDERATION WE NOTE THAT IT IS THE ASSESSEES PLEA THAT THE ASSESSEE WAS SUFFERING FROM AMNESIA, HEAD INJURY AND THIS RESULTED ASSESSEES INABILITY TO COMPLY WITH THE REQUISITE REQUIREMENTS PERTAINING TO THE MAINTENANCE OF BOOKS OF ACCOUNT. WE FIND THAT ASSESSEES EXPLANATION WHICH WAS SUPPORTED BY MEDICAL CERTIFICATES BEFORE THE LEARNED CIT(APPEALS) DOES SHOW CONSIDERABLE COGENCY IN ASSESSEES PLEADINGS. IN OUR CONSIDERED OPINION, IT CAN BE SAID THAT THER E WAS REASONABLE CAUSE FOR THE FAILURE ON THE PART OF THE ASSESSEE IN THIS REGARD. WE FURTHER OPINE THAT THE ASSESSEES CONDUCT IS NOT CONTUMACIOUS SO AS TO WARRANT LEVY OF PENALTY AS HELD BY THE HONBLE APEX COURT IN THE CASE OF HINDUSTAN STEEL LTD. 83 I TR 126. ACCORDINGLY WE SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND DELETE THE LEVY OF PENALTY. 8. IN THE RESULT, THIS APPEAL FILED BY THE ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 10 TH DAY OF JULY, 2015. SD/ - SD/ - (MUKUL K. SHRAWAT) ( SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER. NAGPUR, DATED: 10 TH JULY, 2015. COPY OF ORDER FORWARDED TO : 1. THE ASSESSEE. 2. REVENUE. 3. THE CIT(A) 4. THE CIT, NAGPUR. 5. THE D.R., ITAT, NAGPUR. 6. GUARD FILE. 4 ITA NO. 425/NAG/2013. TRUE COPY. BY ORDER WAKODE ASSISTANT REGISTRAR, ITAT, NAGPUR