RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD., Jaipur V. DEPUTY COMMISSIONER OF INCOME TAX, Jaipur

ITA 534/JPR/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 3940 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-08-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 20-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A S NEHARA
• Keywords: Reasonable cause; Revised return
• Section: 273B

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKWY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA-@ ITA NO. 534/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2012-13 M/S RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD., VIDYUT BHAWAN, JAN PATH, JYOTI NAGAR, JAIPUR CUKE VS. DCIT, CIRCLE-06, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AABCR7436B VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI P. C. PARWAL (CA) JKTLO DH VKSJ LS @ REVENUE BY : SHRI A. S. NEHARA (JCIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 09/08/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 13/08/2018 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A)-2, JAIPUR DATED 30.01.2018 FOR ASSESSMENT YEAR 2012-13 WHEREIN THE ASSESSEE HAS CHALLENGED THE CONFIRMATION OF PENALTY OF RS. 1 ,50,000/- U/S 271B OF THE ACT. 2. AT THE OUTSET, THE LD. AR SUBMITTED THAT THE MAT TER IS SQUARELY COVERED IN ASSESSEES OWN CASE IN ITA NO. 100/JP/2018 DATED 28.03.2018 FOR AY 2013-14 WHEREIN THIS BENCH HAS HELD THAT THERE E XIST A REASONABLE CAUSE FOR THE DELAY IN COMPLETION AND SUBMISSION OF THE T AX AUDIT REPORT AND THE PENALTY U/S 271B WAS DELETED PLACING RELIANCE ON TH E DECISION OF HONBLE PUNJAB AND HARYANA HIGH COURT IN CASE OF CIT VS. PU NJAB STATE LEATHER DEVELOPMENT CORPORATION LTD. (2001) 119 TAXMAN 258. ITA NO. 534/JP/2018 M/S RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD., JAIP UR VS DCIT, JAIPUR 2 3. THE RELEVANT FACTS AND FINDINGS IN ITA NO. 100/ JP/2018 DATED 28.03.2018 FOR AY 2013-14 ARE REPRODUCED AS UNDER:- 5. DURING THE COURSE OF HEARING, THE LD. AR DRAWN A REFERENCE TO THE FOLLOWING TABLE:- STATEMENT SHOWING DATE OF STATUTORY AUDIT, C&AG AUD IT, TAX AUDIT FY AY STATUTORY AUDIT C&AG AUDIT TAX AUDIT DATE OF FILING OF RETURN/ REVISED RETURN 2010 - 11 2011 - 12 08.11.2012 22.04.2013 25.03.2013 27.09.2011/29.03.2013 2011 - 12 2012 - 13 28.11.2013 28.03.2014 26.03.2014 26.09.2012/29.03.2014 2012 - 13 2013 - 14 27.03.2014 19.08.2014 15.07.2014 27.09.2013/16.09.2014 THE LD. AR, DRAWING OUR REFERENCE TO ABOVE TABLE, S UBMITTED THAT THE DELAY IN OBTAINING THE TAX AUDIT REPORT U/S 44AB IS ON ACCOU NT OF DELAY IN CONDUCTING THE STATUTORY AUDIT/ C&AG AUDIT BECAUSE UNLESS THE STATUTORY AUDIT IS CONDUCTED, TAX AUDIT REPORT CANNOT BE ISSUED. THE S TATUTORY AUDIT WAS DELAYED IN FY 2010-11 AS EVEN AFTER ALL THE EFFORTS, THE ST ATUTORY AUDIT REPORT WAS ISSUED BY CR MEHTA & CO. ON 08.11.2012 AND THEREAFT ER, C&AG MADE COMMENTS ON THE ACCOUNTS ON 22.04.2013. THEREAFTER, THE STATUTORY AUDIT FOR FY 2011-12 COULD BE STARTED. THE STATUTORY AUDIT RE PORT FOR FY 2011-12 WAS ISSUED BY P.C. MODI & CO. ON 28.11.2013 AND THEREAF TER, C&AG MADE COMMENTS ON THE ACCOUNTS ON 28.03.2014. AFTER THIS, THE STATUTORY AUDIT REPORT FOR FY 2012-13 WAS ISSUED ON 27.03.2014 AND THEREAFTER, C&AG MADE COMMENTS ON THE ACCOUNTS ON 19.08.2014. IT IS NOT T HE CASE OF LOWER AUTHORITIES THAT DELAY IN THE STATUTORY AUDIT IS BE CAUSE OF THE FAULT OF THE ASSESSEE. THUS, DELAY IN OBTAINING THE TAX AUDIT RE PORT IS BECAUSE OF A REASONABLE CAUSE AS ENVISAGED U/S 273B AND THEREFOR E, THE PENALTY LEVIED U/S 271B BE DELETED. 5.1 THE LD. CIT(A) HAS CONFIRMED THE LEVY OF PENALT Y ONLY ON THE GROUND THAT THE REASONS FORWARDED BY THE ASSESSEE ARE NOT BACKED BY EVIDENCE IGNORING THAT ALL THESE DATES ARE MENTIONED IN THE PRINTED BALANCE SHEET ITA NO. 534/JP/2018 M/S RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD., JAIP UR VS DCIT, JAIPUR 3 AVAILABLE ON THE RECORD OF AO. THE FURTHER OBSERVAT ION OF LD. CIT(A) THAT STATUTORY AUDITOR HAVE NOT AGREED TO THE AUDIT FEES AND HENCE, THERE IS A DELAY IS NOT THE CLAIM OF ASSESSEE AS IS EVIDENT FROM THE SUBMISSION EXTRACTED AT PARA 2.2 OF THE ORDER. THUS, LD. CIT(A) HAS CONFIRM ED THE LEVY OF PENALTY WITHOUT APPLICATION OF MIND. 5.2 THE LD AR FURTHER PLACED RELIANCE ON THE FOLLOWING CASES:- HINDUSTAN STEEL LTD. VS. STATE OF ORISSA 83 ITR 26 (SC) CIT VS. PUNJAB STATE LEATHER DEVELOPMENT CORPORATIO N LTD. (2001) 119 TAXMAN 258 (P&H) (HC) APL INDIA PVT. LTD. VS. JCIT (2014) 62 SOT 91 (MUM. ) (TRIB.) IN VIEW OF ABOVE, IT WAS SUBMITTED THAT THE PENALTY IMPOSED BY AO AND CONFIRMED BY LD. CIT(A) BE DIRECTED TO BE DELETED. 7. WE HAVE HEARD THE RIVAL CONTENTIONS AND PURUSED THE MATERIAL AVAILABLE ON RECORD. IN THE INSTANT CASE, THE LIMITED ISSUE F OR CONSIDERATION IS WHETHER THERE IS A REASONABLE CAUSE FOR THE DELAY IN COMPLE TING THE TAX AUDIT AND SUBMITTING THE REPORT OF THE TAX AUDITOR WITHIN THE SPECIFIED DUE DATE. UNDER SECTION 273B, NO PENALTY SHALL BE IMPOSABLE ON THE ASSESSEE FOR ANY FAILURE WHICH INTERALIA INCLUDE THE DEFAULTS MENTIONED IN S ECTION 271B, IF THE ASSESSEE PROVES THAT THERE WAS REASONABLE CAUSE FOR THE SAID FAILURE. IN THE PRESENT CASE, THE REASON FOR THE DELAY HAS BEEN STATED TO B E THE DELAY IN COMPLETING THE STATUTORY AUDIT FOR THE EARLIER YEARS WHICH HAS RESULTED IN DELAY IN COMPLETION OF STATUTORY AUDIT FOR THE YEAR UNDER CO NSIDERATION AND THE RESULTANT DELAY IN COMPLETING THE TAX AUDIT AND SUB MITTING THE REPORT THEREOF. IT WAS SUBMITTED THAT WITHOUT COMPLETING THE STATUT ORY AUDIT, THE TAX AUDIT COULD NOT HAVE BEEN COMPLETED. WE FIND THAT THE ST ATUTORY AUDITORS ARE APPOINTED BY THE COMPTROLLER & AUDITOR GENERAL OF I NDIA UNDER SECTION 619(2) OF THE COMPANIES ACT, 1956 AND THEY HAVE COMPLETED THE STATUTORY AUDIT AND ITA NO. 534/JP/2018 M/S RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD., JAIP UR VS DCIT, JAIPUR 4 SUBMITTED THEIR AUDIT REPORT DATED 27.03.2014. THE REAFTER, THE TAX AUDIT HAS BEEN COMPLETED ON 15.07.2014 AND THE REVISED RETURN WAS FILED ON 16.9.2014. THE HON'BLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT V. PUNJAB STATE LEATHER DEVELOPMENT CORPN. LTD. [2001] 119 TAXMAN 2 58 HAS HELD THAT DELAY IN COMPLETION OF STATUTORY AUDIT WAS A REASONABLE C AUSE FOR NON-COMPLIANCE WITH SECTION 44AB AND IT WAS HELD THAT THE TRIBUNAL WAS RIGHT IN CANCELLING PENALTY LEVIED UNDER SECTION 271B. RESPECTFULLY FOL LOWING THE SAME, WE ARE OF THE VIEW THAT IN THE INSTANT CASE, WHERE THERE HAS BEEN A DELAY IN COMPLETION OF STATUTORY AUDIT, THERE EXIST A REASONABLE CAUSE FOR THE DELAY IN COMPLETION AND SUBMISSION OF THE TAX AUDIT REPORT UNDER SECTIO N 44AB OF THE ACT. THE PENALTY LEVIED UNDER SECTION 271B IS THEREFORE DELE TED. 4. FOLLOWING OUR EARLIER DECISION REFERRED SUPRA, THERE EXIST A REASONABLE CAUSE FOR THE DELAY IN COMPLETION AND SUBMISSION OF THE TAX AUDIT REPORT UNDER SECTION 44AB OF THE ACT AND THE PENALTY LEVIED U/S 271B OF THE ACT IS HEREBY DELETED. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER PRONOUNCED IN THE OPEN COURT ON 13/08/2018. SD/- SD/- FOT; IKWY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER JAIPUR DATED:- 13/08/2018 *GANESH KR VKNS'K DH IZFRFYFI VXZSF'KR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT - M/S RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM, LTD., JAIPUR 2. IZR;FKHZ@ THE RESPONDENT - DCIT, CIRCLE-06, JAIPUR 3. VK;DJ VK;QDR@ CIT ITA NO. 534/JP/2018 M/S RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD., JAIP UR VS DCIT, JAIPUR 5 4. VK;DJ VK;QDRVIHY@ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 534/JP/2018) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR.