Shri Jobin K.Peter, Muvattupuzha V. ITO, Thodupuzha

ITA 487/COCH/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 8224 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 16-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAYAPRABHA
• Assessee Lawyers: C A VARGHESE
• Keywords: Ignorance of law; Set aside

Judgement Text

1 ITA NO. 487/COCH/2010 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKARA N(AM) I.TA NO. 487/COCH/2010 (ASSESSMENT YEAR 2006-07) SHRI JOBIN K PETER VS THE ITO, WD.1, THODUPUZHA MARY MATHA BINDING INDUSTRIES MUVATTUPUZHA PAN : AISPP7656D (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI C.A. VARGHESE RESPONDENT BY : SMT. VIJAYAPRABHA DATE OF HEARING : 20-03-2012 DATE OF PRONOUNCEMENT : 29-03-2012 O R D E R PER N.R.S. GANESAN (JM) THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME-TAX(A)-II, KOCHI DATED 17-05-201 0 AND PERTAINS TO ASSESSMENT YEAR 2006-07 CONFIRMING THE PENALTY LEVIE D U/S 271B OF THE ACT. 2. SHRI C.A. VERGHESE, THE LD.REPRESENTATIVE FOR TH E ASSESSEE SUBMITTED THAT THE DUE DATE FOR FILING THE RETURN OF INCOME IS 31-1 0-2006. HOWEVER, THE ASSESSEE FILED THE RETURN OF INCOME ALONG WITH THE AUDIT REP ORT ON 31-03-2007. ACCORDING 2 ITA NO. 487/COCH/2010 TO THE LD.REPRESENTATIVE, THE DELAY IN FILING THE A UDIT REPORT IS DUE TO IGNORANCE OF LEGAL PROVISION BY THE ASSESSEE. THEREFORE, LEVY O F PENALTY IS NOT JUSTIFIED. 3. ON THE CONTRARY, SMT. VIJAYAPRABHA, THE LD.DR SU BMITTED THAT IGNORANCE OF LAW IS NOT AN EXCUSE. THE LD.DR PLACED HER RELIANC E ON THE JUDGMENT OF THE PUNJAB & HARYANA HIGH COURT IN THE CASE OF COMMISS IONER OF INCOME-TAX VS SUNIL KUMAR GOEL (2005) 274 ITR 53 (P&H) AND SUBMITTED THAT NON FILING OF AUDIT REPORT WITHIN THE DUE DATE CANNOT BE EXCUSED AT ALL. ACCO RDING TO THE LD.DR IGNORANCE OF LAW CANNOT BE A REASON FOR NOT FILING THE AUDIT REP ORT. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. ADMITTEDLY, THE DUE DATE FOR FILING OF THE RETURN OF INCOME IS 31-10-2006. THE ASSESSEE FILED THE RETU RN OF INCOME ALONG WITH THE AUDIT REPORT ON 31-03-2007. THE PURPOSE AND LEGISLAT IVE INTENT REQUIRING THE ASSESSEE TO GET THE AUDIT REPORT IS TO ASSIST THE A SSESSING OFFICER FOR COMPUTING THE CORRECT TAXABLE INCOME. IN THIS CASE, THE RETU RN OF INCOME WAS FILED ALONG WITH THE AUDIT REPORT ON 31-03-2007. SO THERE WAS A DELAY IN FILING THE AUDIT REPORT AND THE RETURN OF INCOME. THE ASSESSEE CLAI MS THAT THE DELAY WAS DUE TO IGNORANCE OF LEGAL PROVISION. THE FACT REMAINS IS THAT THE ASSESSEE FILED THE AUDIT REPORT BEFORE COMPLETING THE ASSESSMENT PROCEEDINGS . THEREFORE, THE ASSESSING OFFICER HAS NOT FACED ANY DIFFICULTY IN COMPUTING T HE TAXABLE INCOME. ONCE THE ASSESSEE FILED THE AUDIT REPORT BEFORE COMPLETING T HE ASSESSMENT PROCEEDINGS, THE PURPOSE AND LEGISLATIVE INTENT WAS FULFILLED. THEREFORE, THE ASSESSING OFFICER MAY NOT HAVE ANY GRIEVANCE AT ALL. SINCE THE RETUR N OF INCOME ALONG WITH THE AUDIT REPORT WAS FILED ON 31-03-2007 AND THE ASSESSME NT PROCEEDINGS WERE NOT COMPLETED ON THAT DATE, THIS TRIBUNAL IS OF THE OPI NION THAT THIS IS NOT A FIT CASE 3 ITA NO. 487/COCH/2010 FOR LEVY OF PENALTY U/S 271B OF THE ACT. ACCORDING LY, THE ORDERS OF LOWER AUTHORITIES ARE SET ASIDE AND THE PENALTY IS DELETE D. 5., IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 29 TH DAY OF MARCH, 2012. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 29 TH MARCH, 2012 PK/- COPY TO: 1. SHRI JOHN K PETER, MARY MATHA BINDING INDUSTRIES, M UVATTUPUZHA 2. THE ITO, WD.1, THODUPUZHA 3. THE COMMISSIONER OF INCOME-TAX(A)-II, KOCHI 4. THE COMMISSIONER OF INCOME-TAX, KOCHI 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH