TEJSINGH BAID LEGAL HEIR OF LATE SHRI MANSING BAID, MUMBAI V. ACIT RG 14(3), MUMBAI

ITA 5255/MUM/2010

• Counselvise Citation: 525519914 RSA 2010
• Duration Of Justice: 1 year(s) 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: 2003-2004
• Appeal Filed On: 25-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOLI SRINIWAS RAO
• Assessee Lawyers: D C JAIN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH: MUMBAI BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SHRI R.S. PADVEKAR, JUDICIAL MEMBER ITA NO.5255/MUM/2010 (ASSESSMENT YEAR: 2003-04) TEJSINGH BAID, LEGAL HEIR OF LATE SHRI MANSINGH BAID, HANUT NIWAS, GR. FLOOR, DADABHAI CROSS ROAD NO.2, ADNHERI (WEST), MUMBAI -400 058 ....... APPELLANT VS ITO14(3), 6 TH FLOOR, EARNEST HOUSE, NARIMAN POINT, MUMBAI -400 021 ..... RESPONDENT PAN: AAAPB 9794 Q APPELLANT BY: SHRI D.C. JAIN RESPONDENT BY: SHRI GOLI SRINIWAS RAO DATE OF HEARING: 23.08.2011 DATE OF PRONOUNCEMENT: 30.08.2011 O R D E R PER R.S. PADVEKAR, JM: IN THIS APPEAL THE ASSESSEE HAS CHALLENGED THE IMPU GNED ORDER OF THE LD. CIT (A)-25, MUMBAI DATED 23.03.2010 FOR THE A.Y. 2003-04. THE SHORT CONTROVERSY IS PENALTY OF ` 50,000/- LEVIED U/S.271D OF THE ACT. 2. WE HAVE HEARD THE PARTIES. IN THIS CASE, THE AS SESSEES ASSESSMENT WAS COMPLETED U/S.143(3). DURING THE CO URSE OF THE ASSESSMENT PROCEEDINGS, IT WAS NOTICED THAT THE ASS ESSEE HAS TAKEN CASH LOANS OF ` 30,000/- AND ` 20,000/- RESPECTIVELY. THE ASSESSEES EXPLANATION WAS SOUGHT FOR VIOLATION OF SEC 269SS A ND ADDL. CIT LEVIED ITA 5255/MUM/2010 TEJSINGH BAID L. H. OF SHRI MANSINGH BAID 2 THE PENALTY OF ` 50,000/- U/S.271D. THE ASSESSEE CHALLENGED THE PENALTY LEVIED BY THE A.O. BEFORE THE LD. CIT (A) B UT WITHOUT SUCCESS AS THE PENALTY WAS CONFIRMED. NOW, THE ASSESSEE IS IN APPEAL BEFORE US. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS OF THE PARTI ES AND PERUSED THE RECORDS. THE LD. COUNSEL SUBMITS THAT THE ASSE SSEE IS NO MORE AND NOW THE PROCEEDINGS ARE CONTESTED BY LEGAL HEIR S. HE SUBMITS THAT THE AGGREGATING UNPAID LOAN AMOUNT WAS ` 20,000/- AND THE BONA FIDES OF THE TRANSACTION WAS NEVER DISPUTED. THE ASSESS EE WAS 85 YEARS OLD IN THE YEAR 2006 AND HE WAS NOT KEEPIN G WELL DUE TO OLD AGE. HE, THEREFORE, PLEADED FOR DELETING THE PENAL TY. WE HAVE ALSO HEARD THE LD. D.R. 4. NOW WE FIND THAT THERE IS SAD DEMISE OF THE ASSE SSEE AND THE PENALTY MATTER IS CONTESTED BY THE LEGAL HEIRS FOR NO FAULT ON THEIR PART. AT THE SAME TIME, IT WILL BE DIFFICULT FOR THE LEGA L HEIRS TO KNOW THE REASONS AS WELL AS DETAILED FACTS UNDER WHAT CIRCUM STANCES THE DECEASED ASSESSEE HAS ACCEPTED THE LOANS/ADVANCES I N CASH. IN OUR OPINION, AT LEAST CONSIDERING THE FACT THAT THE ASS ESSEE HAS EXPIRED, HENCE, THERE IS NO JUSTIFICATION TO SUSTAIN THE PEN ALTY. WE, ACCORDINGLY, DELETE THE SAME. 5. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 30TH AUGUST 2011. SD/- SD/- ( PRAMOD KUMAR ) ACCOUNTANT MEMBER ( R.S. PADVEKAR ) JUDICIAL MEMBER MUMBAI, DATE: 30TH AUGUST 2011 COPY TO:- 1) THE APPELLANT. ITA 5255/MUM/2010 TEJSINGH BAID L. H. OF SHRI MANSINGH BAID 3 2) THE RESPONDENT. 3) THE CIT (A)25, MUMBAI. 4) THE CIT 14, MUMBAI. 5) THE D.R. H BENCH, MUMBAI. BY ORDER / / TRUE COPY / / ASSTT. REGISTRAR I.T.A.T., MUMBAI *CHAVAN ITA 5255/MUM/2010 TEJSINGH BAID L. H. OF SHRI MANSINGH BAID 4 SR.N. EPISODE OF AN ORDER DATE INITIALS CONCERNED 1 DRAFT DICTATED ON 23.08.2011 SR.PS 2 DRAFT PLACED BEFORE AUTHOR 24.08.2011 SR.PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 FILE SENT TO THE BENCH CLERK SR.PS/PS 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER