SHREE HALARI VISA OSWAL SAMAJ TRUST, MUMBAI V. ASST. DIT (EXEMPT) - II, MUMBAI

ITA 5316/MUM/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 0418 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-08-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 29-08-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: T A KHAN LD
• Keywords: Reasonable cause
• Section: 143(3)

Judgement Text

ITA NO 5316/MUM/2016 SHREE HALARI VISA OSWAL SAMAJ TRUST ASSESSMENT YEAR 2011-12 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI . . , , BEFORE SHRI D.T. GARASIA, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO.5316/MUM/2016 ( / ASSESSMENT YEAR: 2011-12) SHREE HALARI VISA OSWAL SAMAJ TRUST 118/112 DADASAHEB PHALKE ROAD DADAR MUMBAI 400 014 / VS. ASSISTANT DIRECTOR OF INCOME TAX (EXEMPT)-II MUMBAI ! ./ ./PAN/GIR NO. AAATH-2454-H ( !# /APPELLANT ) : ( $%!# / RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : T.A.KHAN, LD. DR / DATE OF HEARING : 09/08/2017 / DATE OF PRONOUNCEMENT : 11/08/2017 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. THE CAPTIONED APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2011-12 ASSAILS THE ORDER OF LD. COMMISSIONER OF IN COME TAX (APPEALS)-1 [CIT(A)], MUMBAI DATED 14/07/2016 QUA CONFIRMATION OF PENALTY U/S 272A(2)(E) OF THE INCOME TAX ACT, 1961 FOR LATE FILING OF ITA NO 5316/MUM/2016 SHREE HALARI VISA OSWAL SAMAJ TRUST ASSESSMENT YEAR 2011-12 2 RETURN OF INCOME. NONE HAS APPEARED ON BEHALF OF AS SESSEE AND HENCE, LEFT WITH NO OPTION, WE PROCEED TO DECIDE THE SAME ON THE BASIS OF MATERIAL AVAILABLE ON RECORD AND AFTER HEARING LD. DEPARTMENTAL REPRESENTATIVE. 2. FACTS LEADING TO THE SAME ARE THAT THE RETURN FO R IMPUGNED AY WAS FILED BY THE ASSESSEE TRUST ON 04/07/2012 AS AGAINS T DUE DATE I.E. 30/09/2011 RESULTING INTO DELAY OF 278 DAYS. RESULT ANTLY, PENALTY PROCEEDINGS U/S 272A WAS INITIATED IN THE QUANTUM A SSESSMENT U/S 143(3) AND SHOW-CAUSE NOTICES WERE ISSUED TO THE ASSESSEE. THE ASSESSEE ATTRIBUTED THE DELAY TO ADVERSE MEDICAL CO NDITION BEING FACED BY THE TRUSTEE AS WELL AS ACCOUNTANT OF THE ASSESSE E. HOWEVER, NOT CONVINCED, AN AMOUNT OF RS.27,800/- HAS BEEN IMPOSE D ON THE ASSESSEE AS PENALTY U/S 272A(2)(E) BY LD. AO VIDE O RDER DATED 22/09/2014 WHICH, UPON APPEAL, HAS BEEN CONFIRMED B Y LD. CIT(A) BY MAKING FOLLOWING OBSERVATION:- 5.2 I HAVE CONSIDERED THE FACTS AND CIRCUMSTANCES OF THE CASE, GONE THROUGH THE PENALTY ORDER OF THE A.O AND THE SUBMISSIONS OF THE APPELLANT AND ALSO DISCUSSED THE CASE WITH THE AR OF THE APPELLANT. THE CONTENTI ONS AND SUBMISSIONS OF THE APPELLANT ARE BEING DISCUSSED AND DECIDED HERE IN U NDER: I. IN THIS CASE THE DUE DATE OF FILING OF RETURN WA S 30.09.2011. HOWEVER THE RETURN OF INCOME WAS FILED ON 4.07.2012 I.E. AFTER A DELAY OF 278 DAYS. EXPLAINING THE DELAY APPELLANT SUBMITTED THAT SAME OCCURRED ON ACCOUNT OF SICKNESS OF MR. CHANDULAL JESHANG SUMARIA, TRUSTEE FROM 5.09.2011 TO 10.10.2011. FURTHER, IT WAS STATED THAT THEREAFTER SHRI NAVIN BHANSALI, ACCOUNTANT FELL ILL FROM 27.03.2012 TO 30.06.2012. IT WAS STATED THAT SINCE THERE WAS REASONABLE CAUSE AS ABOVE, PENALTY SHOULD BE DELETED. II. AFTER CAREFUL CONSIDERATION OF THE EXPLANATION OFFERED, I FIND THAT EVEN GOING BY THE FACTS PLACED ON RECORD BY THE APPELLANT AS A BOVE, DURING THE PERIOD 11.10.2011 TO 26.03.2012 THERE WAS NO DIFFICULTY ON ITS PART TO FILE RETURN. HOWEVER DURING THESE 5 MONTHS THERE WAS NO ACTION T AKEN BY THE APPELLANT WHICH SHOWS CARELESSNESS ON ITS PART. IN THE CASE O F ORNET PROPERTIES VS. ITO (312 ITR 193] AND CIT VS. RELIANCE CAPITAL LTD (322 ITR 252], IT WAS HELD BY HON'BLE BOMBAY HIGH COURT THAT THOSE WHO SL EEP OVER THEIR RIGHTS FOR ITA NO 5316/MUM/2016 SHREE HALARI VISA OSWAL SAMAJ TRUST ASSESSMENT YEAR 2011-12 3 A PROLONGED PERIOD CANNOT CLAIM EQUITY IN JUSTICE. ACCORDINGLY IN MY OPINION THERE WAS NO REASONABLE CAUSE AND HENCE, PENALTY IM POSED BY A.O U/S. 272A(2)(E) IS UPHELD. 6. APPEAL IS DISMISSED. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. 3. THE LD. DR DREW OUR ATTENTION TO THE STATUTORY P ROVISIONS AS CONTAINED IN SECTION 272A(2)(E) AND CONTENDED THAT THE CONDUCT OF THE ASSESSEE JUSTIFIES THE IMPOSITION OF PENALTY PARTIC ULARLY WHEN NO PLAUSIBLE EXPLANATION COULD BE FURNISHED BY HIM TO EXPLAIN THE DELAY IN FILING THE RETURN OF INCOME. 4. WE HAVE HEARD THE CONTENTIONS AND PERUSED MATERI AL AVAILABLE ON RECORD. WE CONCUR WITH THE STAND OF REVENUE SINCE T HE ASSESSEE WAS REQUIRED TO EXPLAIN THE DELAY IN FILING RETURN OF I NCOME WITH PLAUSIBLE EXPLANATION. SINCE, HE HAS FAILED TO DO SO, OUR INT ERFERENCE IS NOT REQUIRED AND THEREFORE, WE CONFIRM THE FINDINGS OF LD. CIT(A). 5. RESULTANTLY, THE ASSESSEES APPEAL STANDS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH AUGUST, 2017. SD/- SD/- (D.T. GARASIA) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 11. 08.2017 SR.PS:- THIRUMALESH ITA NO 5316/MUM/2016 SHREE HALARI VISA OSWAL SAMAJ TRUST ASSESSMENT YEAR 2011-12 4 ! / COPY OF THE ORDER FORWARDED TO : 1. !# / THE APPELLANT 2. $%!# / THE RESPONDENT 3. , ( ) / THE CIT(A) 4. , / CIT CONCERNED 5. $'. , . , / DR, ITAT, MUMBAI 6. / / GUARD FILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI