M/s Rsathi Iron and Steels I ndustries Ltd. , Indore V. ACIT,TDS. Indore, Indore

ITA 601/Ind/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8329 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 25-06-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R P MOURYA
• Keywords: Document seized; Documents seized; TDS
• Section: 201(1); 131

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.601/IND/2018 ASSESSMENT YEAR: 2010-11 M/S. RATHI IRON AND STEELS INDUSTRIES LTD. 103, LAXMI TOWER, 576, MG ROAD, INDORE / VS. ACIT, TDS INDORE ( APPELLANT ) ( RE VENUE ) PAN: AACCR2011B APPELLANT BY SHRI VENUS RAWKA, CA RE VENUE BY SHRI R.P. MOURYA, SR. DR DATE OF HEARING: 25.06.2019 DATE OF PRONOUNCEMENT: 05.07.2019 / O R D E R PER MANISH BORAD, A.M: THIS APPEAL BY ASSESSEE PERTAINING TO A.Y. 2010-11 IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-1, INDORE, (IN SHORT CIT(A)), DATED 13.04.2018 WHICH IS ARISING OUT OF THE ORDER U/S 272A(1)(C) OF THE INCOME TAX ACT 1961 (HEREINAFTER CALLED AS THE ACT) FRAMED ON 27.12.2016 BY ACIT(T DS), INDORE. 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF AP PEAL: THAT THE LEARNED AO ERRED IN LAW AND THE FACT OF T HE RATHI IRON & STEEL INDUSTRIES LTD. ITANO.601/IND/2018 2 CASE AND LEVIED THE PENALTY U/S 272A(1)(C) OF THE I NCOME TAX ACT 1961 OF RS.20,000/- WITHOUT CONSIDERING FUL L FACTS. THE PENALTY LEVIED THEREFORE IS WRONG ON THE FACTS OF THE CASE. 3. BRIEFLY STATED FACTS AS CULLED OUT FROM THE RECO RDS ARE THAT THE ASSESSEE IS A LIMITED COMPANY. SUMMONS U/S 131 OF T HE ACT WERE ISSUED ON 10.02.2016 AND 17.10.2016 BY THE ITO-TDS- II, INDORE AND FOR NON-COMPLIANCE TO THE SAID NOTICES THE LEAR NED ASSESSING OFFICER (IN SHORT LD. AO) LEVIED PENALTY OF RS.10 ,000/- EACH THEREBY LEVYING PENALTY OF RS.20,000/- U/S 272A(1)(C) OF TH E ACT VIDE ORDER DATED 27.12.2016. 4. AGGRIEVED ASSESSEE PREFERRED AN APPEAL BEFORE TH E LD. CIT(A) AGAINST THE ALLEGED LEVY OF PENALTY OF RS.20,000/- U/S 272A(1)(C) OF THE ACT BUT FAILED TO GET ANY RELIEF. 5. NOW THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNA L. 6. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORD PLACED BEFORE US. PENALTY U/S 272A(1)(C) OF THE ACT LEVIED BY LD. AO AT RS.20,000/- @ RS.10,000/- EACH FOR NON-COMPLIANCE T O SUMMONS ISSUED U/S 131 OF THE ACT ON 10.02.2016 AND 17.10.2 016 HAS BEEN CONFIRMED BY THE LD. CIT(A). 7. WE OBSERVE THAT AS PER THE PROVISIONS OF U/S 272 A(1)(C) OF THE ACT PENALTY OF RS.10,000/- IS LEVIABLE FOR EACH SUCH DE FAULT OR FAILURE ON THE PART OF A PERSON TO WHOM A SUMMONS IS ISSUED UN DER SUB- RATHI IRON & STEEL INDUSTRIES LTD. ITANO.601/IND/2018 3 SECTION (1) OF SECTION 131 EITHER TO ATTEND TO GIVE EVIDENCE OR PRODUCE BOOKS OF ACCOUNT OR OTHER DOCUMENTS AT A CE RTAIN PLACE AND TIME OMITS TO ATTEND OR PRODUCE BOOKS OF ACCOUN T OR DOCUMENTS AT THE PLACE OR TIME; OR. 8. ON PERUSAL OF THE RECORDS WE FIND THAT AS REGARD S THE SUMMON DATED 10.02.2016 FIXING THE DATE OF HEARING ON 16.0 2.2016 FOR FURNISHING DOCUMENTS TO THE QUESTIONNAIRE FOR PENDI NG PROCEEDINGS U/S 201(1) AND 201(1A) FOR FINANCIAL YEAR 2009-10, THE ASSESSEE FILED THE REPLY THROUGH ITS REPRESENTATIVE BY A LET TER SENT VIA SPEED POST ON 16.02.2016 EXPLAINING HIS INABILITY TO PROV IDE DOCUMENTS AND INFORMATION AS THE SAME WERE SEIZED BY THE INVE STIGATION DEPARTMENT DURING SEARCH. IT WAS ALSO SUBMITTED THA T COPIES OF SEIZED DOCUMENTS WERE AWAITED. 9. AS REGARDS THE SUMMON DATED 17.10.2016 NO REASON ABLE CAUSE FOR FAILURE TO COMPLY THE SUMMON HAS BEEN FILED BY THE ASSESSEE AT ANY STAGE. 10. WE, THEREFORE, IN THE GIVEN FACTS AND CIRCUMSTA NCES OF THE CASE ARE OF THE CONSIDERED VIEW THAT NO PENALTY U/S 272A (1)(C) OF THE ACT WAS LEVIABLE AT RS.10,000/- FOR THE ALLEGED NON-COM PLIANCE OF THE SUMMON DATED 10.02.2016 AND THE SAME DESERVES TO BE DELETED. HOWEVER, THE PENALTY LEVIED FOR NON-COMPLIANCE TO S UMMON DATED 17.10.2016 NEEDS TO BE CONFIRMED, AS THE LD. COUNSE L FOR THE RATHI IRON & STEEL INDUSTRIES LTD. ITANO.601/IND/2018 4 ASSESSEE FAILED TO BRING ON RECORD ANY REASONABLE C AUSE ON THE PART OF THE ASSESSEE FOR THE SAID FAILURE. 11. IN THE RESULT OF THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED AND THE PENALTY U/S 272A(1)(C) OF THE ACT IS CONFIRMED TO THE EXTENT OF RS.10,000/-. 12. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PA RTLY ALLOWED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 05.07. 2019. SD/- (KUL BHARAT) SD/- (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER INDORE; DATED : 05/07/2019 CTX? P.S/. . . COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUAR D FILE. BY ORDER ASSISTANT REGISTRAR