Jayantilal M. Vadodariya, RAJKOT-GUJARAT V. The Additional Commissioner of Income Tax, Range-4, RAJKOT-GUJARAT

ITA 532/RJT/2013

• Counselvise Citation: 53224914 RSA 2013
• Duration Of Justice: 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 30-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MK SINGH
• Assessee Lawyers: DR ADHIA
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBULAL, SMC BENCH, RAJKOT BEFORE SHRI T. K. SHARMA, JM ITA NO.532/RJT/2013 ASSESSMENT YEAR : 2008-09 JAYANTILAL M. VADODARIYA, DENA BANK, KUTIYANA BRANCH, DIST : PORBANDAR PAN : AAWPV 1752 E ( / APPELLANT) THE ACIT RANGE -4 RAJKOT / RESPONDENT / ASSESSEE BY SHRI D.R. ADHIA, AR / REVENUE BY SHRI M.K. SINGH, DR / DATE OF HEARING 18.06.2014 !'# / DATE OF PRONOUNCEMENT 20.06.2014 / ORDER THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER DATED 09.10.2013 OF CIT(A)-III, RAJKOT CONFIRMING PENALTY OF RS.10,000/ - LEVIED BY THE ASSESSING OFFICER U/S 272A(1)(C) OF THE INCOME-TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2008-09. 2. THE FACTS, IN BRIEF, ARE THAT THE ASSESSING OFFI CER ISSUED A SUMMON ON 31.03.2011 WHICH WAS NOT COMPLIED WITH BY THE ASSES SEE. THEREAFTER, THE ASSESSING OFFICER MADE A PROPOSAL TO THE ADDL. CIT FOR INITIA TION OF PENALTY PROCEEDINGS U/S 272A(1)(C) OF THE ACT. THEREAFTER, THE ADDL. CIT LE VIED THE PENALTY OF RS.10,000/- U/S 272A(1)(C) OF THE ACT ON 15.02.2012. ON APPEAL, IN THE IMPUGNED ORDER, LD. CIT(A) CONFIRMED THE PENALTY OF RS.10,000/- LEVIED BY THE ADDL. CIT U/S 272A(1)(C) OF THE ACT. AGGRIEVED WITH THE ORDER OF LD. CIT(A) CONFIRM ING THE PENALTY OF RS.10,000/-, THE ASSESSEE IS NOW IN APPEAL BEFORE THIS TRIBUNAL. 3. AT THE TIME OF HEARING, ON BEHALF OF THE ASSESSE E, SHRI D.R. ADHIA, AR, APPEARED AND CONTENDED THAT THE TRIBUNAL IN ITA NO. 174/RJT/2013 VIDE ORDER DATED 10.01.2014 DELETED THE TWO ADDITIONS MADE. HE FURTH ER SUBMITTED THAT, AFTER COMPLETION OF ASSESSMENT, THE ASSESSING OFFICER ISS UED A SUMMON FOR RECOVERY PURPOSE ON 31.03.2011 I.E. AFTER COMPLETION OF ASSE SSMENT ON 28.12.2010, I.E. AFTER ABOUT THREE MONTHS TIME. THE MAIN PURPOSE WAS CALLI NG INFORMATION FOR RECOVERY OF OUTSTANDING DEMAND. SINCE AS PER TRIBUNALS ORDER DATED 10.01.2014, THE DEMAND IN QUESTION WAS NOT PAYABLE, ON THIS GROUND ALONE PENA LTY LEVIED FOR NON-COMPLIANCE OF SUMMON U/S 272A(1)(C) OF THE ACT BE CANCELLED. WITH OUT PREJUDICE TO THE ABOVE, THE LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT THERE WA S A REASONABLE CAUSE WHICH 2 532-RJT-2013 - JAYANTILAL M. VADODARIYA-272A(1)(C) (SMC) PREVENTED THE ASSESSEE TO COMPLY WITH THE SUMMON IS SUED TO HIM AS THE WIFE OF THE ASSESSEE IS SUFFERING FROM CANCER AS IS EVIDENT FRO M THE ORIGINAL HOSPITAL FILE OF AISHWARYA HOSPITAL, RAJKOT FURNISHED BEFORE THE TRI BUNAL. THEREFORE ALSO THE PENALTY U/S 272A(1)(C) OF THE ACT IS NOT LEVIABLE. TO SUM-UP, THE LD. COUNSEL OF THE ASSESSEE PLEADED THAT BOTH THE DEPARTMENTAL AUTHORITIES BELOW SHOULD HAVE TAKEN A LENIENT VIEW IN LEVYING THE PENALTY U/S 272A(1)(C) OF THE ACT. 4. ON THE OTHER HAND, SHRI M.K. SINGH, DR, APPEARED FOR THE REVENUE VEHEMENTLY SUPPORTED THE ORDER OF LD. CIT(A). HE PO INTED OUT THAT SINCE NO COMPLIANCE WAS MADE TO THE SUMMON ISSUED BY THE ASS ESSING OFFICER, THE ASSESSING OFFICER RIGHTLY LEVIED THE PENALTY OF RS.10,000/- U /S 272A(1)(C) OF THE INCOME-TAX ACT. THEREFORE, THE APPEAL OF THE ASSESSEE BE DISMISSED. 5. HAVING HEARD BOTH THE SIDES, I HAVE CAREFULLY GO NE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. ADMITTEDLY, A SUMMON ISSUED TO THE ASSESSEE ON 31.03.2011 REQUIRING THE ASSESSEE TO PROVIDE INFORMATION ON 11 .04.2011, I.E. WITHIN 10 DAYS TIME. THIS SUMMON WAS ISSUED FOR CALLING INFORMATION FOR RECOVERY ON OUTSTANDING DEMAND. ADMITTEDLY, AFTER THE DECISION OF ITAT, RAJKOT BENC H IN ITA NO.174/RJT/2013 DTD. 10.01.2014, THE ENTIRE OUTSTANDING DEMAND STANDS DE LETED. BE THAT IT MAY BE, PRIMA- FACIE IT APPEARS THAT THE NON-COMPLIANCE TO SUMMON WAS DUE TO REASONABLE CAUSE AS WIFE OF THE ASSESSEE WAS SUFFERING FROM CANCER WHIC H IS EVIDENT FROM THE HOSPITAL FILE IN ORIGINAL PRODUCED BEFORE ME. KEEPING IN VIEW OF THESE CONSPICUOUS FACTS OF THE CASE, I AM OF THE VIEW THAT THIS IS NOT A FIT CASE FOR LEVYING PENALTY U/S 272A(1)(C) OF THE INCOME-TAX ACT. I, THEREFORE, CANCEL THE SAME. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. THIS ORDER PRONOUNCED IN OPEN COURT ON THE DATE MEN TIONED HEREINABOVE. SD/- ( $.. &' / T. K. SHARMA) ( ) /JUDICIAL MEMBER *)& +) ,/ ORDER DATE: 20.06.2014 !$ /RAJKOT *BT 3 532-RJT-2013 - JAYANTILAL M. VADODARIYA-272A(1)(C) (SMC) / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-JAYANTILAL M. VADODARIYA, DENA BANK, KU TIYANA BRANCH, PORBANDAR 2. / RESPONDENT- THE ACIT, RANGE -4, RAJKOT 3. ,0,1 * * 2 / CONCERNED CIT-II, RAJKOT 4. * * 2- / CIT(A)-III, RAJKOT 5 . 567 1, * 1#, !$ / DR, ITAT, RAJKOT 6 . 79 :; / GUARD FILE *)& / BY ORDER TRUE COPY PRIVATE SECRETARY, ITAT, RAJKOT