ACIT 22(2), NAVI MUMBAI V. PUTTARAJU PUTTASWAMY GOWDA, MUMBAI

ITA 5047/MUM/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3862 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2016
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 04-08-2014
• Court: TRIBUNAL
• Department Lawyers: S R KIRTNEY
• Assessee Lawyers: V D PARMAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER I.T.A. NO.5047/M/2014 (ASSESSMENT YEAR: 2012 - 2013 ) ACIT - 22(2), 4 TH FLOOR, TOWER NO.6, VASHI RLY. STATION COMPLEX, VASHI, NAVI MUMBAI. / VS. MR. PUTTARAJU PUTTASWAMY GOWDA, 105, VAIKUNTH CHS LTD, SINDHI SOCIETY, 3 RD STAGE, GOKULDHAM, CHEMBUR, MUMBAI 400 071. ./ PAN : AAEPG9637M ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI S.R. KIRTNEY, DR / RESPONDENT BY : SHRI V.D. PARMAR / DATE OF HEARING : 17 .02.2016 / DATE OF PRONOUNCEMENT : 17 .02.2016 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE REVENUE ON 4.8.2014 IS AGAINST THE ORDER OF THE CIT (A) - 33, MUMBAI DATED 21.5.2014 FOR THE ASSESSMENT YEAR 2012 - 2013. 2. IN THIS APPEAL, REVENUE RAISED 4 GROUNDS IN TOTO AND THEY REVOLVE AROUND THE LEVYABILITY OF PENALTY U/S 221(1) OF THE ACT. BRIEF FACTS IN THIS REGARD ARE THAT THERE IS A DELAY IN PAYMENT OF SELF - ASSESSMENT TAX BY THE ASSESSEE. ASSESSEE REQUESTED FOR GRANTING OF INSTALMENTS IN R ESPONSE TO THE NOTICE U/S 221(1) OF THE ACT. OTHERWISE, ASSESSEE PAID PART OF THE TAX BEFORE MAKING SUCH REQUEST FOR INSTALMENTS. WITHOUT ADDRESSING TO THE SAID REQUEST, THE REVENUE AUTHORITIES PROCEEDED TO LEVY OF PENALTY U/S 221(1) OF THE ACT AND LEVIE D SUM OF RS. 19,31,920/ - . ON THESE FACTS, ASSESSEE APPROACHED THE CIT (A) AND ARGUED THAT WITHOUT ADDRESSING EITHER BY REJECTING OR PARTLY ALLOWING THE REQUEST OF THE ASSESSEE, PENALTY U/S 221(1) CANNOT BE LEVIED FROM 2 THE POINT OF VIEW RENDER OF THE NATUR AL JUSTICE. CIT (A) CONSIDERED THE SAME AND HELD THAT THE ASSESSEE HAS COOPERATED WITH THE DEPARTMENT AND PAID IN TIME THE AMOUNT AS PER THE CONVENIENCE AND THEREFORE, THERE IS NO CASE FOR LEVYING OF SUCH HUGE PENALTY. ACCORDINGLY, HE SUSTAINED A TOKEN P ENALTY OF RS. 50,000/ - AS AGAINST RS. 19,31,920/ - CHARGED BY THE AO. AGGRIEVED WITH THE ABOVE DECISION OF THE CIT (A), REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. 3. DURING THE PROCEEDINGS BEFORE US, LD DR FOR THE REVENUE HEAVILY RELIED ON THE ORDER OF THE AO AND IS CRITICAL OF THE DECISION OF THE CIT (A). 4. ON THE OTHER HAND, LD COUNSEL FOR THE ASSESSEE FILED A COPY OF THE JUDGMENT OF THE HONBLE HIGH COURT OF PUNJ AB & HARYANA IN THE CASE OF CIT VS. LEADER VALVES (P) LTD [1996] 229 ITR 591 (PUNJ & HAR.) [1996] 220 ITR 591, DATED 11.3.1996 AS WELL AS THE DECISION OF THE ITAT, AHMEDABAD BENCH IN THE CASE OF JCIT VS. VIRAL LAMINATES (P) LTD [2006] 5 SOT 106 (AHD.), DAT ED 20.9.2005, WHICH ARE RELEVANT FOR THE LEGAL PROPOSITION THAT LEVY OF PENALTY U/S 221(1) OF THE ACT WITHOUT ACTING UPON THE ASSESSEES REQUEST FOR SET OFF OF DEMAND / REQUEST FOR GRANTING OF INSTALMENT FACILITY IS NOT SUSTAINABLE IN LAW . 5. WE HAVE HEA RD BOTH THE PARTIES AND PERUSED THE ORDERS OF THE REVENUE AUTHORITIES AS WELL AS THE CITED DECISIONS. ON PERUSAL OF THE JUDGMENT OF THE HONBLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF LEADER VALVES (P) LTD (SUPRA) AND THE DECISION OF THE ITAT, AHMEDABA D BENCH IN THE CASE OF VIRAL LAMINATES (P) LTD (SUPRA), WE FIND THE DECISION TAKEN BY THE CIT (A) IS FAIR AND REASONABLE AND IT DOES NOT CALL FOR ANY INTERFERENCE. ACCORDINGLY, GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 6. IN THE RESULT, APPEAL OF THE R EVENUE IS DISMISSED. ORDER PRONOU NCED IN THE OPEN COURT ON 1 7 T H FEBRUARY, 2016. S D / - S D / - ( PAWAN SINGH ) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 1 7 .2.2016 . . ./ OKK , SR. PS 3 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI