Murlidhar Tractors, JAMNAGAR V. The Income Tax Officer, Ward-2 (2), JAMNAGAR

ITA 616/RJT/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0082 (ITAT-RAJKOT)
• Duration Of Justice: 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 09-11-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 21-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR
• Assessee Lawyers: CHETAN L AGARWAL
• Keywords: Condonation of delay

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH E-COURT AT AHMEDABAD] BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ ITA NO.616/RJT/2015 / ASSESSMENT YEAR : 2005-06 MURLIDHAR TRACTORS, JAMNAGAR-RAJKOT HIGHWAY, HAPA, DIST. JAMNAGAR PAN : AAIFM 2604 C VS INCOME TAX OFFICER, WARD 2(2), JAMNAGAR / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI CHETAN L. AGARWAL, AR REVENUE BY : SHRI AVINASH KUMAR, SR DR / DATE OF HEARING : 09/11/2016 / DATE OF PRONOUNCEMENT: 10/11/2016 / O R D E R PER R.P. TOLANI, JUDICIAL MEMBER:- THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS), JAMNAGAR DATE D 26.03.2015 FOR ASSESSMENT YEAR 2005-06, CHALLENGING THE IMPOSITION OF PENALTY OF RS.2,35,950/-U/S 271(1)(C) OF THE ACT. 2. LD. COUNSEL FOR THE ASSESSEE, AT THE OUTSET, CO NTENDS THAT THE APPEAL HAS BEEN FILED LATE BY 203 DAYS. CONDONATION APPLIC ATION ALONGWITH AN AFFIDAVIT IS FILED. IT IS DEPOSED THAT THE DELAY W AS CAUSED DUE TO THE FACT THAT THE ASSESSEE WAS NOT AWARE ABOUT PASSING OF ORDER B Y THE CIT(A), SINCE IT WAS RECEIVED BY THEN AUTHORIZED REPRESENTATIVE, WHO HAD NOT INFORMED ASSESSEE ABOUT DISMISSAL OF APPEAL. ONLY ON ACTION FOR RECOVERY OF OUTSTANDING DEMAND, THE SAID FACT WAS COME TO LIGHT AND APPEAL WAS IMMEDIATELY FILED BEFORE THE TRIBUNAL. IT IS PLEADE D THAT THE ASSESSEE WAS ITA NO. 616/RJT/2015 MURLIDHAR TRACTORS VS, ITO AY : 2005-06 2 PREVENTED BY SUFFICIENT CAUSE; HOWEVER, FOR THE MIS TAKE ON THE PART OF THE ASSESSEE, A REASONABLE COST MAY BE IMPOSED. IT IS A LSO PLEADED THAT THE QUANTUM QUA WHICH THE PENALTY HAS BEEN LEVIED IS DE LETED BY THE TRIBUNAL; THEREFORE, IF THE ASSESSEES APPEAL IS DISMISSED FO R NON-CONDONATION OF DELAY, IT WILL CAUSE GREAT HARDSHIP. 3. LD. DR IS HEARD ON THE POINT OF CONDONATION OF D ELAY AND ON MERITS. 4. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATE RIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITI ES BELOW. IN OUR CONSIDERED VIEW, IF THE QUANTUM ADDITION HAS ALREAD Y BEEN DELETED, THE PENALTY ON MERIT DOES NOT SURVIVE. HOWEVER, THE QU ESTION OF CONDONATION OF DELAY IS THERE. IN OUR VIEW, THE ASSESSEE WAS P REVENTED BY A SUFFICIENT CAUSE; HOWEVER, FOR THE INACTION ON THE PART OF THE ASSESSEE IN THE GIVEN FACTS, THE ASSESSEES COUNSEL HAS PROPOSED TO IMPOS E A REASONABLE COST. WE, THEREFORE, IMPOSE A COST OF RS.5,000/- (RS. FIVE TH OUSAND ONLY) TO BE PAID WITHIN ONE MONTH OF RECEIPT OF THIS ORDER WHICH IS AGREED BY THE ASSESSEES COUNSEL. 5. ITAT HAS DELETED THE QUANTUM ADDITION IN RESPECT OF AMOUNT OF RS.6,39,744/-, BY HOLDING THAT IT IS ALLOWABLE AS B AD DEBT. SINCE THE QUANTUM ADDITION HAS BEEN DELETED, THE IMPUGNED PENALTY ALS O STANDS DELETED. 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED ON A BOVE IMPOSITION OF COST. ORDER PRONOUNCED IN THE COURT ON 10 TH NOVEMBER, 2016 AT AHMEDABAD. SD/- SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER (R.P. TOLANI) JUDICIAL MEMBER AHMEDABAD; DATED 10/11/2016 *BIJU T., SR. PS ITA NO. 616/RJT/2015 MURLIDHAR TRACTORS VS, ITO AY : 2005-06 3 / COPY OF THE ORDER FORWARDED TO : / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, RAJKOT 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , / DR, ITAT, RAJKOT 6. / GUARD FILE .