KASHYAP M. TANNA, MUMBAI V. ADDL.C.I.T. RG.11(2), MUMBAI

ITA 4319/MUM/2012

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3545 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 11 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 10-02-2015
• Assessment Year: 1995-1996
• Appeal Filed On: 22-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause; Condonation of delay

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH A , MUMBAI , , BEFORE SHRI RA J ENDR A , ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA , JUDICIAL MEMBER ITA NO. : 4 319 /MUM/201 2 (ASSESSMENT YEAR: 1995 - 96 ) KASHYAP M TANNA , 117, SUPER SHOPPING COMPLEX, BAJAJ CROSS ROAD, KANDIVALI (WEST), MUMBAI - 400 067 . PAN: AABPT 4534 B VS ADDL. CIT - RG.11(2), R. NO.359, AAYAKAR BHAV AN, M K MARG, MUMBAI - 400 020 (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PRAMOD KUMAR PARIDA RESPONDENT BY : SHRI SANDEEP GOEL /DATE OF HEARING : 10 - 0 3 - 201 6 / DATE OF PRONOUNCEMENT : 31 - 05 - 2016 ORDER , : PER AMIT SHUKLA , J M: THE AFORESAID APPEAL HAS BEEN FILED BY THE ASSESSEE IN RELATION TO THE PENALTY PROCEEDINGS UNDER SECTION 271E OF RS.1 LAKH. 2 M/S AMERICAN EXPRESS ITA 1064 /MUM/201 4 2. AT THE OUTSET, THE APPEAL OF THE ASSESSEE IS BARRED BY LIMITATION BY 3 DAYS . I N SUPPORT, THE ASSESSEE HAS FILED A PETITION FOR CONDONATION OF DELAY ALON G WITH AN AFFIDAVIT STATING THAT, WHEN THE ORDER OF THE CIT(A) WAS RECEIVED IN THE OFFICE OF THE CHARTERED ACCOUNTANT, HE WAS NOT IN TOWN DUE TO DEATH OF HIS FAMILY MEMBER. IMMEDIATELY AFTER RETURN ING BACK, HE FILED THE APPEAL . THUS, THERE WAS A REASONABLE CAUSE IN NOT FILING THE APPEAL IN TIME. 3. AFTER HEARING THE PARTIES AND GO ING THROUGH THE AVERMENTS MADE IN THE AFFIDAVIT, WE FIND THAT THERE WAS A REASONABLE CAUSE IN NOT FILING THE APPEAL IN TIME AND ACCORDINGLY , WE FIND IT FIT CASE FOR CONDONING THE DELAY. 4. IN THE PRESENT CASE, PENALTY HAS BEEN LEVIED ON REPAYMENT OF LOAN OF RS. 1 LAKH O THERWISE THAN BY ACCOUNT PAYEE CHEQUE OR BANK DRAFT TO KUNTY M. TANNA , THAT IS, IN CASH IN VIOLATION OF SECTION 269T. THE LD. CIT(A) TOO HAS CONFIRMED PENALTY BEING IN VIOLATION OF SECTION 269T. 5. BEFORE US THE LD. COUNSEL SUBMITTED THAT, ADMITTEDLY IT I S REPAYMENT OF LOAN AND IN VIEW OF THE SCOPE OF PENALTY AS PRESCRIBED UNDER SECTION 271E PRIOR TO 01.06.2003 , NO PENALTY WAS LEVIABLE ON LOAN BECAUSE THE WORD LOAN HAS BEEN INSERTED IN THE SAID SECTION ONLY W.E.F. 01.04.2003. HERE IN THIS CASE, THE MATTE R PERTAINS 3 M/S AMERICAN EXPRESS ITA 1064 /MUM/201 4 TO AY 1994 - 95; THEREFORE, PENALTY UNDER SECTION 271E CANNOT BE LEVIED. 6. THE LD. DR, ON THE OTHER HAND, STRONGLY RELIED UPON THE ORDER OF THE AO. 7. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND ON PERUSAL OF THE RELEVANT MATERIAL ON RECORD, W E FIND THAT, IT IS AN UNDISPUTED FACT THAT THE PENALTY HAS BEEN LEVIED ON REPAYMENT OF LOAN IN CASH. THE PENALTY UNDER SECTION 271E AS IT STOOD AT THE RELEVANT TIME , DID NOT HAD THE WORD LOAN AND THE ONLY WORD USED IN THE SECTION WAS REPAYMENT OF ANY DE POSIT . THUS, IN AY 1995 - 96, NO PENALTY WAS LEVIABLE ON ACCOUNT OF REPAYMENT OF ANY LOAN IN VIOLATION OF SECTION 269T. TH E WORD LOAN IN SECTION 271E HAS BEEN BROUGHT IN THE STATUTE BY THE FINANCE ACT, 2003 W.E.F. 01.03.2003. ON THIS PRELIMINARY GROUND AL ONE, WE HOLD THAT NO PENALTY CAN BE LEVIED UNDER SECTION 271E FOR REPAYMENT OF LOAN IN CASH IN THE ASSESSMENT YEAR 1995 - 96. ACCORDINGLY, PENALTY OF RS. 1,00,000/ - LEVIED IS HEREBY DELETED. 8. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST MAY , 201 6 . SD/ - SD/ - ( ) ( ) ( RA J ENDR A ) ( AMIT SHUKLA ) ACCOUNTANT MEMBER JUDI CIAL MEMBER MUMBAI, DATE: 31 ST MAY , 201 6 4 M/S AMERICAN EXPRESS ITA 1064 /MUM/201 4 / COPY TO: - 1 ) / THE APPELLANT. 2 ) / THE RESPONDENT. 3 ) THE C IT ( A ) 3 , MUMBAI. 4 ) THE C IT - 11 , MUMBAI. 5 ) , , / THE D.R. A BENCH, MUMBAI. 6 ) \ COPY TO GUARD FILE. / BY ORDER / / TRUE COPY / / / , DY. / ASSTT. REGISTRAR I.T.A.T., MUMBAI * . . *CHAVAN, SR.PS