M/s U.P Shram evam Nirman Sahkari Sangh Limited, Lucknow V. DY. Commissioner of Income Tax, Lucknow

ITA 583/LKW/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1156 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 30-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Condonation of delay

Judgement Text

I.T.A. NO.583/LKW/2016 ASSESSMENT YEAR:2012-13 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI T. S. KAPOOR, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA NO.583/LKW/2016 ASSESSMENT YEAR:2012-13 U.P. SHRAM EVAM NIRMAN SAHKARI SANGH LIMITED, 29, KABIR MARG, LUCKNOW. PAN:AAAAU 1496 M VS. DY.C.I.T., RANGE-2, LUCKNOW. (APPELLANT) (RESPONDENT) O R D E R PER T. S. KAPOOR, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF CIT(A) DATED 31/05/2016. 2. THE ONLY GRIEVANCE RAISED BY THE ASSESSEE IN THI S APPEAL IS THE ACTION OF LEARNED CIT(A) BY WHICH HE HAS CONFIRMED THE PEN ALTY OF RS.20,000/- LEVIED U/S 271(1)(B) OF THE I.T. ACT. 3. AT THE VERY OUTSET, IT WAS NOTICED THAT THE PRES ENT APPEAL IS BARRED BY LIMITATION BY 17 DAYS. THE ASSESSEE HAS SUBMITTED AN APPLICATION DATED 23 RD SEPTEMBER, 2016 FOR CONDONATION OF DELAY EXPLAINING THE REASONS FOR THE DELAY IN FILING THE APPEAL. FINDING FORCE IN THE S UBMISSIONS OF THE ASSESSEE MADE IN THE CONDONATION APPLICATION AND BEING SATIS FIED WITH THE SAME, WE CONDONE THE DELAY OF 17 DAYS AND ADMIT THE APPEAL F OR HEARING. APPELLANT BY SHRI K. R. RASTOGI, F.C.A. RESPONDENT BY SHRI R. K. VISHWAKARMA, D. R. DATE OF HEARING 16 / 01 /201 8 DATE OF PRONOUNCEMENT 19 / 01 /201 8 I.T.A. NO.583/LKW/2016 ASSESSMENT YEAR:2012-13 2 4. WE HAVE HEARD THE RIVAL PARTIES AND HAVE GONE TH ROUGH THE MATERIAL PLACED ON RECORD. THE FACTS OF THE CASE, IN BRIEF, ARE THAT SPECIAL AUDIT U/S 142(2A) OF THE ACT WAS DIRECTED BY THE REVENUE AND A LETTER TO THIS EFFECT WAS SENT TO THE ASSESSEE ON 23/03/2015 AND THE ASSE SSEE WAS DIRECTED TO GET THE SPECIAL AUDIT CONDUCTED BY THE AUDITORS APP ROVED BY THE REVENUE VIZ. M/S DHAWAN & MADAN, CHARTERED ACCOUNTANTS AND TO FURNISH A REPORT OF SUCH AUDIT WITHIN 30 DAYS FROM THE DATE OF RECEIPT OF LETTER DATED 23/03/2015. THE SPECIAL AUDIT COULD NOT BE COMPLET ED WITHIN THE TIME PRESCRIBED AS CERTAIN DOCUMENTS AND INFORMATION REQ UIRED FOR AUDIT PROCEEDINGS COULD NOT BE PROVIDED BY THE ASSESSEE D UE TO THE FACTS NARRATED BY THE ASSESSEE THAT SIB AND CBI TEAM HAD OPERATED THEIR COMPUTER SYSTEM FOR CARRYING OUT EXAMINATION OF RECORDS OF THE ASSE SSEE AND DUE TO WHICH THE COMPUTER SYSTEMS WERE NOT SHOWING ANY DETAILS. HOWEVER, LEARNED A. R. SUBMITTED THAT THE ASSESSEE VIDE ITS LETTER 19/0 5/2015 HAD INFORMED THE REVENUE (COPY AVAILABLE AT PAGE 15 OF PAPER BOOK) T HAT VIDE LETTER DATED 26/03/2015, THE ASSESSEE HAD PROVIDED ALL THE REQUI RED DOCUMENTS AND INFORMATION TO THE AUDIT TEAM. HOWEVER, THE SPECIA L AUDIT COULD NOT BE COMPLETED WITHIN THE TIME AND ULTIMATELY ASSESSING OFFICER LEVIED THE PENALTY OF RS.20,000/- FOR NON COOPERATION BY THE A SSESSEE WHICH WAS CONFIRMED BY LEARNED CIT(A) ON THE GROUND THAT THE ASSESSEE FAILED TO COMPLY WITH THE DIRECTIONS OF LETTER ISSUED BY ASSE SSING OFFICER AND SUBSEQUENT LETTER FOR EXTENSION OF TIME. IN OUR OP INION, THE ASSESSEE COULD NOT BE ABLE TO COMPLY WITH THE DIRECTIONS WITHIN TH E TIME PRESCRIBED BECAUSE SIB AND CBI TEAM HAD OPERATED THEIR COMPUTER SYSTEM FOR CARRYING OUT EXAMINATION OF RECORDS OF THE ASSESSEE AND DUE TO W HICH THE COMPUTER SYSTEMS WERE NOT SHOWING ANY DETAILS. NO CONTRARY E VIDENCE HAS BEEN BROUGHT ON RECORD WHICH MAY PROVE THAT THE EXPLANAT ION GIVEN BY THE ASSESSEE IS FALSE. THEREFORE, WE ARE OF THE VIEW TH AT IT IS NOT A FIT CASE WHERE PENALTY U/S 271(1)(B) CAN BE IMPOSED, AS THE ASSESSEE WAS I.T.A. NO.583/LKW/2016 ASSESSMENT YEAR:2012-13 3 PREVENTED BY SUFFICIENT CAUSE. WE, THEREFORE, DELET E THE PENALTY IMPOSED ON THE ASSESSEE U/S 271(1)(B) OF THE ACT. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 19/01/2018) SD/. SD/. (PARTHA SARATHI CHAUDHURY) ( T. S. KAPOOR ) JUDICIAL MEMBER A CCOUNTANT MEMBER DATED:19/01/2018 *SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW