Smt. Suman Bhadoriya, Agra V. ITO 4(2), Agra

ITA 61/AGR/2011

• Counselvise Citation: 6120314 RSA 2011
• Duration Of Justice: 7 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 13-10-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 25-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K SHARMA
• Assessee Lawyers: R C TOMAR I T P
• Keywords: Reasonable cause
• Section: 142(1); 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.61/AGR/2011 ASSESSMENT YEAR: 2006-07 SMT. SUMAN BHADORIYA, VS. INCOME TAX OFFIC ER 4(2), W/O. SHRI JAGVEER SINGH BHADORIYA, AGRA. VILLAGE KORATH, POST SHIVNAGAR (VIA. JAITPUR KALAN), TAH. BAH, DISTRICT AGRA (PAN: AGNPB 1596 M). (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R.C. TOMAR, I.T.P. RESPONDENT BY : SHRI A.K. SHARMA, JR. D.R. DATE OF HEARING : 13.10.2011 DATE OF PRONOUNCEMENT : 17.10.2011 ORDER PER B.C. MEENA, A.M. : THIS IS AN APPEAL FILED BY THE ASSESSEE ARISING OUT OF THE ORDER OF CIT(A)-II, AGRA DATED 13.12.2010. 2. THE GROUNDS OF APPEAL READ AS UNDER :- ITA NO.61/AGR/2011 A.Y. 2006-07 2 1. THAT APPELLANT IS A LADY RESIDING IN INTERIOR V ILLAGE OF TAHSIL BAH MORE THAN 70 KMS FROM AGRA ENJOYING INCOME FROM LIC COMMISSION ON WHICH TAX DUE AT ` 4531 BY WAY OF TDS WAS DULY DEDUCTED BY THE LIC AND NO TAX WAS DUE. REPRODUCE 2. THAT THE LD CIT(A) HAS ERRED ON FACTS AND IN LAW IN SUSTAINING PENALTY OF ` 10,000/- ILLEGALLY IMPOSED BY THE ASSESSING OFFICER . 3. THAT NO NOTICE DT. 4.11.08 FIXING THE DATE OF HE ARING ON 06.11.08 WAS EVER ISSUED OR SERVED AS MENTIONED IN THE ASSES SMENT ORDER AND PENALTY ORDER. 4. THAT THE LD CIT(A) HAS ERRED ON FACTS IN BRUSHIN G ASIDE THE FACT THAT THE NOTICE OF HEARING DT. 4.11.08 DISPATCHED O N 8.11.08 FIXING THE DATE OF HEARING ON 11.11.08 WAS SERVED ON APPELLANT ON 17.11.08 AND THUS SHE WAS PREVENTED BY SUFFICIENT CAUSE FROM MAK ING COMPLIANCE AND THIS FACT WAS PUT ON ASSESSING OFFICERS RECORD BY MEANS OF APPLICATION FILED ON 2.2.09. 5. THAT PENALTY ORDER PASSED BY THE ASSESSING OFFIC ER IMPOSING PENALTY OF ` 10,000/- U/S 271(1)(B) BEING ILLEGAL BE DIRECTED TO BE QUASHED. 3. THE ONLY ISSUE INVOLVED IN THE APPEAL IS CONFIRM ING THE PENALTY OF RS.10,000/- LEVIED BY THE ASSESSING OFFICER UNDER S ECTION 271(1)(B) OF THE INCOME TAX ACT, 1961 (THE ACT HEREINAFTER). 4. WHILE PLEADING ON BEHALF OF THE ASSESSEE, THE LD . AUTHORISED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT THE PENALTY ORDER UN DER SECTION 271(1)(B) OF THE ACT WAS MADE BY THE ASSESSING OFFICER ON 12.11.2008. A S PER THE ORDER OF THE ASSESSING OFFICER, THE ASSESSEE HAS NOT COMPLIED WI TH THE NOTICE ISSUED UNDER ITA NO.61/AGR/2011 A.Y. 2006-07 3 SECTION 142(1) OF THE ACT. THE NOTICE WAS STATED T O BE ISSUED ON 04.11.2008 AND THE COMPLIANCE WAS DUE ON 06.11.2008 AND IN THAT NO TICE IT WAS STATED TO BE MADE CLEAR THAT NON-COMPLIANCE WILL LEAD TO THE LEVY OF PENALTY UNDER SECTION 271(1)(B) OF THE ACT. THE LD. AUTHORISED REPRESENTATIVE DREW OUR ATTENTION TO PAGE NO.2A OF THE PAPER BOOK FILED AND WHICH IS A PHOTOSTAT COPY OF ENVELOPE BY WHICH THE NOTICE WAS STATED TO BE SENT TO THE ASSESSEE. IT WAS FURT HER SUBMITTED THAT THIS NOTICE WAS ISSUED ON 07.11.2008 AND THE SAME WAS DESPATCHED TH ROUGH THE DAK DATED 08.11.2008 WHICH IS CLEAR FROM THE STAMP MARK ON TH E ENVELOPE. THEREFORE, HE SUBMITTED THAT NO NOTICE WAS RECEIVED BY THE ASSESS EE FOR WHICH THE COMPLIANCE COULD HAVE BEEN MADE. IN VIEW OF THIS FACT, THE AS SESSEE HAS REASONABLE CAUSE FOR NON-COMPLIANCE OF THE NOTICE AND THE ASSESSEE CANNO T BE VISITED BY PENALTY UNDER SECTION 271(1)(B) OF THE ACT. 5. ON THE OTHER HAND, THE LD. DEPARTMENTAL REPRESEN TATIVE RELIED ON THE ORDER OF THE AUTHORITIES BELOW. 6. AFTER HEARING BOTH THE SIDES AND PERUSING THE RE LEVANT RECORDS AVAILABLE ON RECORD, WE ARE OF THE VIEW THAT THE NOTICE DATED 04 .11.2008 FIXING THE DATE FOR COMPLIANCE ON 06.11.2008 AS MENTIONED IN THE PENALT Y ORDER UNDER SECTION 271(1)(B) DATED 12.11.2008 WAS NOT SERVED TO THE AS SESSEE IN TIME FOR COMPLIANCE. ITA NO.61/AGR/2011 A.Y. 2006-07 4 THE STAMP MARK ON THE ENVELOPE BY WHICH THIS NOTICE WAS DESPATCHED CLEARLY SHOWS THAT IT HAS BEEN DESPATCHED BY THE POST OFFIC E ON 08.11.2008. THEREFORE, THERE WAS A REASONABLE CAUSE FOR NON-COMPLIANCE OF THE NOTICE BY THE ASSESSEE. IN VIEW OF THIS FACT, WE ARE OF THE VIEW THAT THE ASSE SSEE DO NOT DESERVE TO BE VISITED BY PENALTY UNDER SECTION 271(1)(B) OF THE ACT. IT WAS ALSO NOTICED THAT THE ASSESSMENT ORDER UNDER SECTION 144 OF THE ACT WAS C OMPLETED ON 12.11.2008. FURTHER, THE ASSESSEE IS A LADY RESIDING IN RURAL A REA IN A VILLAGE AND SHE IS ENGAGED IN EARNING INCOME ONLY AS AN L.I.C. AGENT. ALL THE RECEIPTS OF THE L.I.C. COMMISSION ARE SUPPORTED BY THE CERTIFICATE GRANTED BY THE L.I.C. AND THE RESIDENCE OF THE ASSESSEE IS LOCATED AT SUCH A VILLAGE WHERE THERE IS NO TRAIN CONNECTIVITY. ALL THESE FACTS SHOW THAT THERE WAS REASONABLE CAUSE FO R NON-COMPLIANCE BY THE ASSESSEE. IN VIEW OF THE THIS FACT, WE DELETE THE PENALTY LEVIED UNDER SECTION 271(1)(B) OF THE ACT. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . (ORDER PRONOUNCED IN THE OPEN COURT ON 17.10.2011) SD/- SD/- (H.S. SIDHU) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 17 TH OCTOBER, 2011 PBN/* ITA NO.61/AGR/2011 A.Y. 2006-07 5 COPY OF THE ORDER FORWARDED TO: APPELLANT/RESPONDENT/CIT CONCERNED/CIT(APPEALS) CO NCERNED/D.R., ITAT, AGRA BENCH, AGRA/GUARD FILE. BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL, AGRA TRUE COPY