Shri KULWANT SINGH RAKHRA, Indore V. THE ITO 5(1), Indore

ITA 481/IND/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5805 (ITAT-INDORE)
• Duration Of Justice: 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 09-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJEEV JAIN
• Assessee Lawyers: N D PATWA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI D.T.GARASIA, HON'BLE JUDICIAL MEMBER AN D SHRI N.S. SAINI, HONBLE ACCOUNTANT MEMBER ITA NO. 480 & 481/IND/2016 (ASST. YEAR : 2007-08) SHRI KULWANT SINGH RAKHRA, INDORE. VS. ITO, 5(1), INDORE. PAN NO. ABRPR8832R (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI ASHISH GOYAL AND SHRI N. D. PATWA, ADV. DEPARTMENT BY : SHRI RAJEEV JAIN, DR DATE OF HEARING : 14/07/2016. DATE OF PRONOUNCEMENT : 14/07/2016. O R D E R PER N.S.SAINI, ACCOUNTANT MEMBER THESE ARE THE APPEALS FILED BY THE ASSESSEE AGAINS T THE SEPARATE ORDERS OF THE CIT(A)-II, INDORE, PASSED IN ASSESSME NT YEAR 2007-08 BOTH DATED 31.12.2015. 2. THE ISSUE INVOLVED IN I.T.A.NO. 480/IND/2016 IS T HAT THE LD. CIT(A) ERRED IN CONFIRMING THE LEVY OF PENALTY IMPO SED U/S 271A, FOR NON-MAINTENANCE OF BOOKS OF ACCOUNTS OF RS. 25,000/ -. THE ISSUE INVOLVED IN I.T.A.NO. 481/IND/2016 IS THAT THE LD. CIT(A) ERRED IN 2 KULWANT SINGH RAKHRA V. ITO, INDORE. I.T.A.NOS. 480 & 481/I/16 IMPOSING THE PENALTY U/S 271B OF RS. 40,000/- FOR N OT GETTING ITS ACCOUNTS AUDITED. 3 . AT THE TIME OF HEARING, THE LD. AUTHORIZED REPRES ENTATIVE OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS NOT MAINTA INED BOOKS OF ACCOUNTS DURING THE YEAR UNDER CONSIDERATION AND, THEREFORE, PENALTY IMPOSED OF RS. 25,000/- U/S 271A BE CONFIRMED. HE F URTHER SUBMITTED THAT AS THE ASSESSEE HAS NOT MAINTAINED BOOKS OF AC COUNTS, THE QUESTION OF GETTING THEM AUDITED DOES NOT ARISE AND , THEREFORE, NO PENALTY CAN BE LEVIED U/S 271B OF THE INCOME-TAX A CT, 1961, AND, THEREFORE, THE SAME SHOULD BE DELETED. FOR THIS HE RELIED ON THE DECISION OF THIS BENCH OF THE TRIBUNAL IN THE CASE OF VIJAY GOYAL VS. ITO I.T.(SS)A.NOS. 74 & 75/IND/2014 ORDER DATED 10.11.2 014. 4. THE LD. DEPARTMENTAL REPRESENTATIVE SUPPORTED T HE ORDERS OF THE LOWER AUTHORITIES. 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE MATERIAL AVAILABLE ON RECORD, WE FIND THAT AS THE LD. AUTHOR IZED REPRESENTATIVE OF THE ASSESSEE HAS CONCEDED THAT THE ASSESSEE IS LIAB LE FOR PENALTY U/S 271A OF RS. 25,000/- FOR NON-MAINTENANCE OF BOOKS O F ACCOUNTS, THEREFORE, WE CONFIRM THE ORDER OF THE CIT(A) AND D ISMISS THE APPEAL OF THE ASSESSEE. 6. AS REGARDS LEVY OF PENALTY FOR NOT GETTING THE A CCOUNTS AUDITED U/S 271B OF RS. 40,000/-, WE FIND THAT THE DELHI BENCH OF THE TRIBUNAL IN THE CASE OF CHANDA SUDHIR KUMAR, 56 ITD 470 (DEL) HAS HELD THAT 3 KULWANT SINGH RAKHRA V. ITO, INDORE. I.T.A.NOS. 480 & 481/I/16 WHEN BOOKS OF ACCOUNTS ARE NOT MAINTAINED, THEN THE RE IS NO QUESTION OF GETTING AUDIT REPORT U/S 44AB OF THE INCOME-TAX ACT, 1961. 7. FURTHER THE SAME VIEW WAS EXPRESSED BY THE PUNE BENCH OF THE TRIBUNAL IN THE CASE OF RAM PRAKASH PURI, 117 TAXMA NN 154 (PUNE) AND CIT VS. BISAULI TRACTORS, 299 ITR 219. RESPECTFULLY FOLLOWING THE SAID DECISIONS, WE DELETE LEVY OF PENALTY OF RS. 40,000/ - U/S 271B OF THE INCOME-TAX ACT, 1961, AND ALLOW THE APPEAL OF THE A SSESSEE. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IN I.T .A.NO. 480/IND/2016 IS DISMISSED AND APPEAL IN I.T.A.NO. 4 81/IND/2016 IS ALLOWED. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE H EARING ON THURSDAY, THE 14 TH DAY OF JULY, 2016 AT INDORE. SD/- SD/- (D.T.GARASIA) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 14 TH JULY, 2016. CPU COPY TO: 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT 4. THE CIT(A) 5. THE D.R. 6. GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., INDORE 4 KULWANT SINGH RAKHRA V. ITO, INDORE. I.T.A.NOS. 480 & 481/I/16