Sri Shaik Shameem Basha, Narasaraopeta V. The ITO, Ward-1, Narasaraopeta

ITA 502/VIZ/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 6989 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 24-03-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 06-11-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G S S GOPINATH
• Keywords: Reasonable cause; Set aside

Judgement Text

PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.502/VIZAG/2009 ASSESSMENT YEAR: 2006-07 SHAIK SHAMEEM BASHA, NARASARAOPET VS. ITO WARD-1, NARASARAOPET (APPELLANT) (RESPONDENT) PAN NO.AGWPB 0760 E APPELLANT BY: SHRI GVN HARI, CA RESPONDENT BY: SHRI G.S.S. GOPINATH, DR ORDER PER SHRI B R BASKARAN, ACCOUNTANT MEMBER : THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 24.8.2009 PASSED BY THE LD CIT(A), GUNTUR CONFIRMIN G THE PENALTY OF RS.24,506/- LEVIED U/S 271 B OF THE ACT FOR THE ASS ESSMENT YEAR 2006-07. 2. THE FACTS RELATING TO THE ISSUE IS STATED IN BRI EF. THE ASSESSEE IS DERIVING INCOME FROM CONTRACT WORKS. FOR THE ASSESS MENT YEAR 2006-07, HE REPORTED A TURNOVER OF RS.49,01,281/-. HENCE THE A SSESSEE WAS REQUIRED TO GET HIS BOOKS OF ACCOUNT AUDITED AND FILE THE AUDIT REPORT WITH THE ASSESSING OFFICER BEFORE THE SPECIFIED DATE, I.E. ON OR BEFOR E 31.10.2006. THOUGH THE AUDIT REPORT OBTAINED BY THE ASSESSEE WAS DATED 31. 10.2006, YET THE SAME PAGE 2 OF 3 WAS FILED ONLY ON 15.11.2006. HENCE THE ASSESSING OFFICER INITIATED PENALTY PROCEEDING U/S 271 B OF THE ACT AND LEVIED A PENALT Y OF RS.24,506/- FOR THE DELAY IN FILING THE TAX AUDIT REPORT. THE LD CIT(A) CONFIRMED THE LEVY OF PENALTY. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFOR E US. 3. WE HAVE HEARD THE PARTIES AND CAREFULLY PERUSED THE RECORD. THE EXPLANATION OF THE ASSESSEE FOR THE DELAY IN FILING THE AUDIT REPORT WAS THAT HE WAS ADVISED TO TAKE REST FOR 15 DAYS FROM 25.10.200 6 ON ACCOUNT OF HIS ILLNESS AND HENCE HE COULD NOT FILE THE SAME BEFORE THE SPECIFIED DATE. IN SUPPORT OF HIS EXPLANATION THE ASSESSEE HAS FILED A CERTIFICATE FROM THE DOCTOR. THE EXPLANATION OF THE ASSESSEE WAS NOT ACCEPTED BY THE AS HE WAS OF THE VIEW THAT THE ASSESSEE COULD HAVE GOT HIS ACCOUNTS AUDITED PRIOR TO HIS ILLNESS. 3.1 THE UNDISPUTED FACT IS THE ASSESSEE GOT THE AUDIT REPORT ON 31.10.2006, I.E. BEFORE THE SPECIFIED DATE. THE AO S ALLEGATION THAT THE AUDIT REPORT WAS BACK DATED DOES NOT HAVE ANY BASIS. ACCO RDING TO THE LD AR, THE ASSESSEE WAS LIABLE FOR TAX AUDIT FOR THE FIRST TIM E ONLY DURING THE INSTANT YEAR. ACCORDING TO THE ASSESSEE, HE WAS ADVISED TO TAKE REST FOR FIFTEEN DAYS FROM 25.10.2006 BY HIS DOCTOR AND IN SUPPORT OF HIS EXPLANATION; HE HAS FILED A CERTIFICATE FROM THE DOCTOR. THIS EXPLANATION OF THE ASSESSEE HAS NOT BEEN FOUND TO BE FALSE BY THE AO ON THE BASIS OF ANY MAT ERIAL. ALL THESE FACTS SHOW THAT THE ASSESSEE HAD REASONABLE CAUSE FOR THE DELA Y IN FILING TAX AUDIT REPORT. ACCORDING TO SECTION 273 B OF THE ACT, PENALTY U/S 271 B SHALL NOT BE IMPOSED IF THE ASSESSEE PROVED THAT THERE WAS REASONABLE CA USE FOR THE FAILURE. THE PAGE 3 OF 3 ASSESSEE HAS SUFFICIENTLY EXPLAINED THE DELAY, WHIC H IN OUR OPINION, IS REASONABLE. IN VIEW OF THE ABOVE WE SET ASIDE THE OR DER OF THE TAX AUTHORITIES AND CANCEL THE PENALTY OF RS.24,506/- LEVIED U/S 27 1 B OF THE ACT. 4. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 30-03-2010. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM, DATE: 30 TH MARCH, 2010. COPY TO 1 SHRI SHAIK SHAMEEM BASHA, PROP: NATIONAL ENGINEER ING WORKS, NAVODAYA NAGAR, NARASARAOPET 2 THE ITO WARD-I, NARASARAOPET 3 THE CIT, GUNTUR 4 THE CIT(A), GUNTUR 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM