Sub Registrar, Almora V. Director of Income Tax (Intelligence & Criminal Investigation), Kanpur

ITA 480/LKW/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 0332 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 7 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 31-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 201; 274

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI. A. D. JAIN, VICE PRESIDENT AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER ITA NO. 480/LKW/2017 ASSESSMENT YEAR: 2015 - 16 SUB - REGISTRAR DISTRICT REGISTRAR OFFICE BUILDING COLLEC TORATE COMPOUND ALMORA V. DIRECTOR OF INCOME TAX (INTELLIGENCE & CRIMINAL INVESTIGATION), KANPUR T AN /PAN : MRTDO2238F (APP ELL ANT) (RESPONDENT) APPELLANT BY: SHRI SHUBHAM RASTOGI, FCA RESPONDENT BY: SHRI AJAY KUMAR, D.R. DATE OF HEARING: 19 0 3 201 9 DATE OF PRONOUNCEMENT: 29 0 3 201 9 O R D E R PER A. D. JAIN, V.P . : THIS IS ASSESSEES APPEAL AGAINST THE LEVY OF PENALTY OF RS.2,25,900/ - UNDER SECTION 271FA OF THE INCOME - TAX ACT, 1961, IMPOSED BY THE DIRECTOR OF INCOME TAX (INTELLIGENCE & CRIMINAL INVE STIGATION), KANPUR, FOR FAILURE TO FURNISH STATEMENT OF SPECIFIED FINANCIAL TRANSACTION, AS PROVIDED UNDER SECTION 285BA(1) OF THE ACT. 2 . TH IS APPEAL IS TIME BARRED BY FIFTY DAYS. IN THE APPLICATION FOR CONDONATION OF DELAY, THE ASSESSEE HAS CONTENDED THAT THE OFFICE OF THE APPELLANT IS AT THREE TEHSIL(S) BEING ALMORA, BANIKHET & BHIKIASIN WHERE THERE IS STAFF NOT VERY WELL VERSED WITH COMPUTER AND THE MAIN COMPUTER STAFF WAS ON LEAVE. MOREOVER, THERE IS A LOT OF CONNECTIVITY PROBLEMS. IT WAS SUBMITTED T HAT THE DELAY IN FILING OF THE APPEAL WAS DUE TO THIS REASONABLE CAUSE AND HENCE THE DELAY IN FILING OF THE APPEAL MAY BE CONDONED . HAVING CAREFULLY PERUSED THE APPLICATIONS FOR CONDONATION OF DELAY, WE FIND THAT THERE WAS SUFFICIENT CAUSE FO R DELAY IN FI LING OF THE ITA NO.480/LKW/2017 PAGE 2 OF 5 APPEAL . ACCORDINGLY , WE CONDONE THE DELAY AND ADMIT TH IS APPEAL FOR HEARING. 3 . THIS APPEAL IS MAINTAINABLE AGAINST THE PENALTY ORDER P ASSED BY THE DIT (I&CI), KANPUR. IT HAS BEEN SO HELD BY THIS BENCH OF THE TRIBUNAL IN THE CASE OF RAIBAREILLY DISTRICT CO - OPERATIVE BANK LTD. VS. DIT (I&CI), LUCKNOW, 38 ITR (T) 27(LUCKNOW TRIB.). THEREIN , IT HAS BEEN HELD THAT THE APPEAL AGAINST THE ORDER OF THE DIT (I&CI), KANPUR PASSED UNDER SECTION 271FA OF THE ACT IS TO BE FILED BEFORE THE TRIBUNAL, WHICH IS HIGHER IN RANK, AND NOT BEFORE THE LD. CIT(A), WHO IS EQUIVALENT IN RANK WITH THE DIT (I&CI). 4 . THE PENALTY NOTICE UNDER SECTION 271FA READ WITH SECTION 274 OF THE ACT WAS ISSUED TO THE ASSESSEE/AIR FILER, QUA A SPECIFIED FINANCIAL TRANSACTION WITH NSDL, THE AUTHORIZED AGENCY. IN RESPONSE, THE ASSESSEE FILED WRITTEN SUBMISSION DATED 9/2/201 AS FOLLOWS: - 'SUBMITTED RESPECTFULLY THAT THE APPELLANT GOVERNMENT DEPARTMENT HAS SEN T MANUAL DETAILS (HARD COPY) THROUGH REGISTERED POST TO YOU HON'BLE OFFICE EVERY HALF MONTH. THE POST OF SUB REGISTRAR WAS VACATE FROM LAST TWO YEARS, THE SAID COULDN'T FILED IN PRESCRIBED MANNER BUT HARD COPIES OF DETAILS WAS ALREADY BEING SEND REGULARLY. THE APPELLANT GOVT . DEPARTMENT HAS NO FACILITY TO F ILE ONLINE RETURN BUT WE HAVE TAKEN HELP TO FILE ON LINE RETURN THROUGH SOME FACILITATION CENTRE. NOW WE HAVE FILED AIR ONLINE THROUGH RECEIPT NO 07376410000021 DATED 09.022017. COPY OF SAID RETURN FILED A CK . RECEIPT ENCLOSED HEREWITH. IT IS THEREFORE RE QUESTED THAT GOVERNMENT DEPARTM ENT HAS REASONABLE CAUSED TO COULD NOT FILED RETURN IN PRESCRIBED MANNER SO PLEASE BE KINDLY VACATE THE PE NALTY NOTICE U/S 271FA & OBLIGED 5 . THE DIT (I&CI), HOWEVER, HAS IMPOSED PENALTY OF RS.2,25,900/ - , BY VIRTUE OF THE IMPUGNED ORDER DATED 23/3/2017, PAS SED ITA NO.480/LKW/2017 PAGE 3 OF 5 UNDER SECTION 271FA OF THE ACT. WHILE DOING SO, THE DIT (I&CI) HAS HELD THAT THERE WAS A DELAY OF 527 DAYS IN FILING OF THE ANNUAL INFORMATION RETURN FOR THE YEAR UNDER CONSIDERATION; THAT THE AIR FILER/ASSESSEE HAS FAILED TO DEMONSTRATE ANY REASONABL E CAUSE FOR FAILURE TO FILE THE AIR IN TIME. 6 . THE LD. A.R. OF THE ASSESSEE HAS, MAINTAIN ING THE STAND TAKEN BEFORE THE DIT (I&CI), CONTENDED THAT THE POST OF THE SUB REGISTRAR IN THE OFFICE OF THE DISTRICT REGISTRAR, ALMORA, WAS VACANT FOR THE PAST TWO YEA RS; THAT IT WAS AS SUCH, THAT THE AIR COULD NOT BE FILED IN THE PRESCRIBED MANNER; THAT HOWEVER, HARD COPIES/MANUAL DETAILS HAD BEEN REGULARLY SENT THROUGH REGISTERED POST EVERY HALF MONTH TO THE A.OS OFFICE; THAT THE D ISTRICT REGISTRAR , AS A GOVERNMENT B ODY , HAD , AND STI L L HAS , NO FACILITY TO FILE THE RETURN ONLINE; THAT HOWEVER, HELP HAS BEEN TAKEN TO FILE THE RETURN ONLINE THROUGH SOME FACILITATION CENTRE; THAT THE A IR ONLINE WAS FILED ON 9/2/2017; THAT THE DIT (I&CI) HAS FAILED TO TAKE INTO CONSIDERATI ON THESE FACTS, CONSTITUTING REASONABLE CAUSE FOR THE DELAY IN FILING THE AIR ONLINE; AND THAT, THEREFORE, THE PENALTY IMPOSED BE DELETED. 7 . THE LD. D.R., ON THE OTHER HAND, PLACING STRONG RELIANCE ON THE IMPUGNED PENALTY ORDER, HAS SUBMITTED THAT THE DELAY IN FILING OF THE AIR ONLINE IS A HUGE DELAY OF 527 DAYS, CALLING FOR NO RELIEF TO THE ASSESSEE/AIR FILER; AND THAT THEREFORE, THE PENALTY, RIGHTLY IMPOSED BY THE DIT (I&CI), KANPUR, BE ORDERED TO BE CONFIRMED. 8 . HEARD. THE DIT (I&CI), WHILE IMPOSING THE PEN ALTY , HAS, EVIDENTLY, NOT TAKEN INTO CONSIDERATION THE FACTORS DUE TO WHICH DELAY IN FILING OF THE AIR ONLINE WAS CAUSED. THESE FACTS HAVE NOT EVEN BEEN REFERRED TO IN THE IMPUGNED ORDER, MUCH LESS CONTROVERTED. IT REMAINS UNDISPUTED THAT THE ASSESSEE/AI R FILER IS THE OFFICE OF THE DISTRICT REGISTRAR, WHICH ITSELF IS A GOVERNMENT DEPARTMENT. IT ALSO REMAIN S A FACT THAT THERE WAS NO SUB REGISTRAR POSTED WITH THE ASSESSEE AT THE ITA NO.480/LKW/2017 PAGE 4 OF 5 RELEVANT TIME. IT IS THE SUB REGISTRAR WHO IS RESPONSIBLE FOR MANAGING THE A FFAIRS OF THE OFFICE OF THE DISTRICT REGISTRAR, INCLUDING FILING OF ONLINE AIR, AS PER THE REQUIREMENT OF SECTION 285BA READ WITH RULE 114E OF THE RULES. IT WAS ONLY IN THE FACE OF THE POST OF SUB REGISTRAR LYING VACANT FOR THIS PERIOD, THAT THE AIR ONLIN E COULD NOT BE FILED IN THE PRESCRIBED MANNER. HOWEVER, THE HARD COPIES OF THE DETAILS WERE REGULARLY SENT TO THE OFFICE OF THE DIT (I&CI), THROUGH REGISTERED POST, EVERY HALF MONTH, WHICH, AGAIN, DOES NOT STAND REFUTED. IT ALSO IS NOT DENIED THAT THE AS SESSEE/AIR FILER HAS NO FACILITY TO FILE ONLINE RETURN. THE AIR ONLINE HAS BEEN FILED WITH THE HELP OF SOME FACILITATION CENTRE. THE ASSESSEE CAN ALSO NOT BE SAID TO HAVE GAINED ANYTHING BY DELAYING THE FILING OF THE AIR OBNLINE. 9 . THE ABOVE REASONS FOR TH E DELAY IN FILING OF THE AIR ONLINE, IN OUR CONSIDERED VIEW, CONSTITUTE REASONABLE CAUSE PREVENTING THE ASSESSEE/AIR FILER FROM FILING THE AIR ONLINE WITHIN TIME. OTHERWISE TOO , THERE IS NO LOSS TO THE REVENUE BY THE ALLEGED DEFAULT. ALSO, THE ASSESSEE/A IR FILER HAS NOT BEEN SHOWN TO BE A HABITUAL OR REGULAR OFFENDER. RATHER, AS OBSERVED, EVEN IN THE ABSENCE OF THE SUB REGISTRAR, THE AIR MANUAL DETAILS HAVE BEEN REGULAR LY FILED EVERY HALF MONTH. THIS DELAY OF 527 DAYS , THEREFORE, IS ENTITLED TO BE CONDO NED. IT IS , IN THE INTEREST OF JUSTICE, ORDERED TO BE SO CONDONED. THE PENALTY IN QUESTION IS, IN THESE FACTS AND CIRCUMSTANCES OF THE CASE, NOT SUSTAINABLE IN LAW. IT IS, IN THE INTEREST OF JUSTICE, HEREBY DELETED. 10 . IN THE RESULT, THE APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 29 / 0 3 /201 9 . SD/ - SD/ - [ T. S. KAPOOR ] [ A. D. JAIN ] ACCOUNTANT MEMBER VICE PRESIDENT DATED: 29 /03/ 201 9 JJ: 1903 ITA NO.480/LKW/2017 PAGE 5 OF 5 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR BY ORDER ASSISTANT REGISTRAR