Income Tax Officer, Ward-1(2), Tirupathi V. Sri G. Raja Reddy, Tirupathi

ITA 666/HYD/2012

• Counselvise Citation: 66622514 RSA 2012
• Duration Of Justice: 1 year(s) 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2014
• Appeal Filed By: Department
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 03-05-2012
• Court: TRIBUNAL
• Assessee Lawyers: S RAMA RAO

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A ', HYDERABAD BEFORE THE HONBLE VICE PRESIDENT, SHRI D.MANMOHAN AND SHRI B.RAMAKOTAIAH, HONBLE ACCOUNTANT MEMBER ITA NO. 666 /HYD/201 2 : ASST. YEAR 20 0 8 - 09 I NCOME TAX OFFICER WARD 1(2),TIRUPATI V/S. SHRI G.RAJA REDDY, TIRUPATI. ( PAN - A DWPR 6142 H ) (AP ELL ANT) (RESPONDENT) APP E L L A NT BY : S MT. K.HARITHA DR RESPONDENT BY : S HRI S.RAMA RAO DATE OF HEARING 7 . 2 .201 4 DATE OF PRONOUNCEMENT 7 .2.2014 O R D E R PER B.RAMAKOTAIAH, ACCOUNTANT MEMBER : THIS I S R EVENUE S APPEAL AGAINST THE ORDER OF THE CIT(A) GUNTUR ON THE I S SUE OF DELETION OF PENALTY UNDER S.271D OF THE A C T . 2. AT TH E OUTSET, IT MAY BE NOTED THAT THERE IS A DELAY OF 2 DAYS IN THE FILING OF THE APPEAL. A PET I TION HAS BEEN FILED SEEKING CONDONATION OF DELAY, WHEREIN IT HAS BEEN SUB M I T TED THAT THE DELAY HAS OCCURRED ON ACCOUN T OF INORDINATE DELAY IN T HE TRANSMISSION OF RECORDS FROM THE OFFICE OF THE COMMISSIO N E R TO THE OFFICE OF THE ASSESSING OFFICER . CO N S I D ERING THE EXPLANATION OF THE APPELLANT AND THE SMALLNESS OF THE DELAY INVOLVED , WE CO NDONE THE DELAY IN THE FIL ING OF THE APPEAL , AND PROCEED TO DISPOSE OF THE SAME ON MERITS. 3 . THE ISSUE IN THIS APPEAL I S WITH REFERENCE TO L E VY O F PENA L TY ON THE AMOUNTS ACCEPTED BY THE ASSESSEE IN CASH TO THE EXTENT OF RS.10 LAKHS. I T WAS THE SUB M I S SION THAT THE ASSESSEE HA D TO ACCEPT THE AMO UNTS DUE TO BUSINESS I TA NO . 666 /HYD/201 2 M/S. G . RAJA REDDY, TIRUPATI 2 CONSIDERATION S AND T H E R E F ORE PENALTY U NDER S.271D IS N O T WARRANTED . THE LEARNED CIT(A) IN HIS ORDER DELETED THE PENALTY ON THE R E ASON THAT THERE WAS NO FI N D I N G THAT THE LOANS W E RE MALA FIDE . T HE LEVY WAS FOR T E CHNICAL REASON AND NOT ON FINDING THAT SOME SORT OF BOGUS TRANSACTION TOOK PLACE. 4 . THE LEARNED DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE REASONS GIVEN BY T H E CIT(A) ARE N O T JUSTIFIABLE . A S PER THE P R OVIS I O N S O F THE A C T PENALTY IS NOT WARRANTED ONLY IN CA S E , WHERE T HE RE IS A BONA FIDE EXPLANATION BY THE ASSESSEE WHICH JUSTIFIED UNDER THE RU L E S. SI N C E T H E SE ASPECTS ARE N O T EXAMINE D BY THE LEARNED CIT(A) AND DELETED ON EXTRA NEOUS CONSID E R A T IONS, THE ORDER OF THE CIT(A) IS NOT CORRE C T. 5 . THE LEARNE D COUNSEL , ON T H E O T H E R HAND, HOWEVER , SUPPORTED THE ORDER OF THE CIT(A) . 6 . HAVING CO N S IDERE D THE RIVAL SUBM I S SIO N S , W E ARE OF THE OPINION THAT THE ORDER OF THE CIT(A) IS N O T CORR E CT. IN S TEAD OF EXAMINING WHETHER THERE ARE B ONA FIDE REASONS FOR ACCEPTING THE CASH DE POSITS, THE FI N D I N G S OF THE CIT(A) THAT THE ASSESSING OFFICER HAS N O T P R OVED THAT THE LOANS WERE MALA FIDE IS N O T JUSTI FIABLE. THE P R O V I SI O N S OF S.269SS WERE INTRODUCED ONLY TO PREVENT ASSESSEE S ACCEPTING CASH DE P O S I TS AND EXCEPTIO N S ARE PROVIDED U NDER RU L E S. U NLESS THE RECEIPT OF CASH IS JUSTIFIED IN THE CIR C U MSTANCES AS PROVIDED UNDER THE ACT /RULES , PENALTY UNDER S.271D IS W ARR ANTED. S I N C E THESE AS P EC TS HAVE NOT BEEN CONSIDERED BY THE LEARNED CIT(A) , WE ARE O F THE OPINION THAT T H E ORDER HAS TO BE SET ASIDE AND RESTORED TO THE FILE O F THE CIT(A) FOR FRESH EXAMINATION IN THE LIGHT OF THE PROV I SI O N S OF T HE AC T AND THE LAW ON THE ISSUE. THE CIT(A) SHALL ACCORDINGLY DISPOSE OF THE APPEAL BEFORE HIM AFRESH IN ACCORDANCE WITH LAW, AFTER GIVING REASONABLE OP P ORTU N ITY OF HEAR ING TO THE ASSESSEE . I TA NO . 666 /HYD/201 2 M/S. G . RAJA REDDY, TIRUPATI 3 7 . IN THE R E SU L T , R E VENUE S APPEAL I S ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE COURT ON 7 . 2 .2014 SD/ - SD/ - (D.MANMOHAN) ( B.RAMAKOTAIAH ) VICE PRESIDENT ACCOUNTANT MEMBER DT/ - 7 TH FEBRUARY 201 4 COPY FORWARDED TO: 1. SHRI G.R A JA REDDY, PLOT NO.1 45, NEW BALAJI COLONY, TIRUPATI 2 . INCOME TAX OFFICER W A RD 1(2), TIRUPATI 3 . 4 . COMMISSIONER OF INCOME - TAX(APPEALS) , GUNTUR C OMMISSIONER OF INCOME - TAX GUNTUR 5 . DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S