Surendra Kumar Thakral, Meerut V. DCIT, Circle- 2, Meerut

ITA 473/DEL/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2401 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 18-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bonafide belief
• Section: 143(3); 147

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI SMC BENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA , ACCOUNTANT MEMBER ITA NO. 47 3 /DEL/201 8 [ASSESSMENT YEAR: 2 0 1 2 - 1 3 ] S HRI SURENDRA KUMAR THAKRAL VS. THE D.C. I.T. A - 3, TEJ PAL SINGH ENCLAVE , CIRCLE - 2 DELHI ROAD, MEERUT MEERUT PAN: A AGPT 7573 H [APPELLANT] [RESPONDENT] DATE OF HEARING : 0 5 . 11 .201 8 DATE OF PRONOUNCEMENT : 1 2 . 1 1 .2018 ASSESSEE BY : SHRI ROHIT AGGARWAL, CA REVENUE BY : MS. AASHNA PAUL , SR. DR ORDER PER N .K. BILLAIYA, ACCOUNTANT MEMBER: T HIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX [APPEALS] , NEW DELHI DATED 28 . 12 .201 7 PERTAINING TO ASSESSMENT YEAR 20 1 2 - 1 3 . 2 2. THE SOLITARY GRIEVANCE OF THE ASSESSEE IS THAT THE LD. CIT(A) ERRED IN CONFIRMING THE PENALTY OF RS. 54,000/ - LEVIED U/S 271(1)(C) OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT']. 3. ROOTS FOR LEVY OF PENALTY LIE IN THE ASSESSMENT ORDER DATED 17.11.2016 FRAMED U/S 147 R.W.S 143(3) OF THE ACT. 4. THE COMPLETED ASSESSMENT WAS REOPENED BECAUSE THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS NOT INCLUDED THE LFC/LTC RECEIVED FROM ITS EMPLOYERS IN ITS INCOME AND THE SAME WAS CLAIMED TO BE EXEMPT U/S 10(5) OF THE ACT. THE REASSESSMENT WAS COMPLETED A FTER MAKING THE ADDITION OF LFC/LTC RECEIVED FROM THE EMPLOYER. P ENALTY PROCEEDINGS WERE SEPARATELY INITIATED. 5. DURING THE COURSE OF PENALTY PROCEEDINGS, THE ASSESSEE STRONGLY CONTENDED THAT SINCE HIS EMPLOYER SBI DID NOT DEDUCT TAX AT SOURCE ON THE LFC /LTC PAYMENT, THE ASSESSEE WAS UNDER BONAFIDE BELIEF THAT THE SAME WAS EXEMPT. THE 3 CONTENTION OF THE ASSESSEE DID NOT FIND FAVOUR WITH THE ASSESSING OFFICER WHO PROCEEDED BY LEVYING PENALTY OF RS. 54,000/ - U/S 271(1)(C) OF THE ACT. THE ASSESSEE CARRIED TH E MATTER BEFORE THE LD. CIT(A) , BUT WITHOUT ANY SUCCESS. 6. BEFORE ME, THE LD. COUNSEL FOR THE ASSESSEE REITERATED WHAT HAS BEEN STATED BEFORE THE LOWER AUTHORITIES. 7. THE LD. DR STRONGLY SUPPORTED THE FINDINGS OF THE FIRST APPELLATE AUTHORITY. 8. I HAVE CAREFULLY CONSIDERED THE ORDERS OF THE AUTHORITIES BELOW. THERE IS NO DISPUTE THAT THE EMPLOYER SBI DID NOT DEDUCT TAX AT SOURCE ON REIMBURSEMENT OF LFC/LTC. IT CANNOT BE RULED OUT THAT THE ASSESSEE WAS UNDER BONAFIDE BELIEF THAT THE SAME IS EXEMP T FROM TAX. OTHERWISE, THE EMPLOYER WOULD HAVE DEDUCTED TAX AT SOURCE. IN MY CONSIDERED VIEW, IT CANNOT BE STATED THAT THE ASSESSEE HAS CONCEALED ITS PARTICULARS OF INCOME OR HAS FURNISHED INACCURATE PARTICULARS OF INCOME. CONSIDERING THE CIRCUMSTANCES UN DER WHICH THE ASSESSEE FORMED BONAFIDE 4 BELIEF, I AM OF THE OPINION THAT THIS IS NOT A FIT CASE FOR LEVY OF PENALTY U/S 271(1)(C) OF THE ACT. I, ACCORDINGLY, DIRECT THE ASSESSING OFFICER TO DELETE THE PENALTY SO LEVIED. 9 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IN ITA NO. 473 /DEL/201 8 IS ALLOWED . THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 1 2 . 1 1 .2018. S D / - [N.K. BILLAIYA] ACCOUNTANT MEMBER DATED: 1 2 T H NOVEMBER , 2018 VL/ COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) ASST. REGISTRAR, 5. DR ITAT, NEW DELHI 5 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER