Smt. Pravati Dey, Purba Medinipur V. ADDL C.I.T Range - Haldia, Purba Medinipur

ITA 689/KOL/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5630 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 01-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S P LAHIRI SR DR PER
• Assessee Lawyers: A K CHAKRABORTY; GAUTAM GHOSH
• Keywords: Reasonable cause
• Section: 273B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOL KATA [BEFORE SHRI P.K.BANSAL, A.M. & SHRI GEORGE MATHAN, J.M. ] I.T.A. NO.689/KOL/2013 ASSESSMENT YEAR : 2005-06 SMT. PRAVATI DEY, PROP. M/S.ITABERIA -VS- ADDL.CIT, RANGE-HALDIA SERVICE STATION, PURBA MEDINIPUR ( APPELLANT ) PAN : AIFPD 6242G ( RESPONDENT ) DATE OF CONCLUDING THE HEARING : 08.01.2014 DATE OF PRONOUNCING THE ORDER : 15.01.2014 APPEARANCES : FOR THE ASSESSEE : S/SHRI A.K.CHAKRABORTY, ADVOCATE & GAUTAM GHOSH, ADVOCATE : FOR THE RESPONDENT : SHRI S.P.LAHIRI, SR. DR O R D E R PER SHRI P.K.BANSAL, A.M. : THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)- XXXIII, KOLKATA DATED 01.10.2012 FOR THE ASSESSMENT YEAR 2005-06 BY WHICH THE CIT(S) CONFIRMED THE PENALTY LEVIED BY THE AO UNDER SECTION 271D OF THE INCOME TAX ACT. 2. BRIEF FACTS OF THE CASE ARE THAT DURING THE COUR SE OF THE SCRUTINY ASSESSMENT PROCEEDINGS, THE AO NOTED THAT THE ASSESSEE HAS TAK EN THE CASH LOAN FROM HIS FAMILY MEMBERS TO THE EXTENT OF RS.2,50,000/-. WHEN THE EXPLANATION OF THE ASSESSEE WAS ASKED FOR, THE ASSESSEE EXPLAINED THAT THIS IS THE FIRST YEAR OF THE BUSINESS. THE ASSESSEE HAD TAKEN LOAN FROM HIS FAMI LY MEMBERS ON SUNDAY DUE TO URGENT NEED. THE LOAN WAS TAKEN FROM HER BROTHERS, NAMELY, (I) SHRI MANORANJAN DEY RS.1,00,000/-, (II) SRI BHAGYADHAR DEY RS. 50,000/-, (III) SRI GOURI SHANKAR DEY RS.50,000/- AND (IV) SRI PURARANJAN D EY RS.50,000/-. THUS, IT WAS CONTENDED THAT THE ASSESSEE WAS HAVING A REASONABLE CAUSE AS THE ASSESSEE HAS MADE THE PAYMENT TO THE IOC ON 24.01.2005 FOR GETTI NG THE PETROL THE PETROL PUMP. 2 I.T.A. NO.689/ KOL/2013 SMT.P RAVATI DEY A.Y. 2005-06 THE CASH LOAN WAS TAKEN ON 23.01.2005, SUNDAY AT AB OUT 7.30 PM AND IN THE MORNING OF 24.01.2005 A D.D. BEARING NO.0841753 WAS PREPARED IN FAVOUR OF INDIAN OIL CORPORATION FOR PURCHASE OF HSD AND ACCO RDINGLY IOC SUPPLIED THE HSD VIDE CHALLAN NO.605576130. THE AO WAS NOT SATIS FIED. THEREFORE, HE LEVIED THE PENALTY UNDER SECTION 271D AMOUNTING TO RS.2,50 ,000/- FOR VIOLATING THE PROVISIONS OF SECTION 269SS AND 269T. WHEN THE MATT ER WENT BEFORE THE CIT(A), THE CIT(A) CONFIRMED THE PENALTY. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y CONSIDERED THE SAME ALONG WITH THE ORDERS OF TAX AUTHORITIES BELOW. WE HAVE ALSO GONE THROUGH THE DECISIONS OF THE HONBLE GUJRAT HIGH COURT IN THE C ASE OF CIT-VS- NATVARLD PURUSHOTTAMDA PAREKH (2008) 303 ITR 5(GUJ.) AND OF THE HONBLE MADRAS HIGH COURT IN THE CASE OF CIT-VS- IDHAYAN PUBLICATIONS L TD. (2006) 285 ITR 221(MAD). WE NOTED THAT THE LEVY OF THE PENALTY UNDER SECTION 271D IS NOT AUTOMATIC. SECTION 273B LAYS DOWN THAT NO PENALTY SHALL BE IMPOSABLE O N THE PERSON OR THE ASSESSEE FOR ANY FAILURE UNDER SECTION 271D. IN CASE, THE AS SESSEE PROVES THAT THERE WAS REASONABLE CAUSE FOR SUCH FAILURE. FROM THE SUBMISS IONS MADE BY THE ASSESSEE AND THE FACT THAT THE CASH LOAN HAS BEEN TAKEN BY THE A SSESSEE FROM ITS RELATIVES ON SUNDAY, WHEN ALL BANKING CHANNELS WERE CLOSED, DUE TO BUSINESS EXIGENCIES, WE ARE SATISFIED THAT THE ASSESSEE WAS HAVING A REASON ABLE CAUSE AND THEREFORE, IT IS NOT A FIT CASE WHERE THE PENALTY COULD HAVE BEEN LEVIED ON THE ASSESSEE. WE, THEREFORE, SET ASIDE THE ORDER OF THE CIT(A) AND CANCEL THE PE NALTY LEVIED UNDER SECTION 271D. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. THIS ORDER IS PRONOUNCED IN THE OPEN COURT ON 15 TH JANUARY, 2014. SD/- SD/- (GEORGE MATHAN) (P. K. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 15 TH JANUARY, 2014 3 I.T.A. NO.689/ KOL/2013 SMT.P RAVATI DEY A.Y. 2005-06 COPY OF THE ORDER FORWARDED TO: 1. SMT. PRAVATI DEY, PROP. M/S.ITABERIA SERVICE STATIO N, VILL & P.O. BOYAL, P.S. NANDIGRAM, DIST-PURBA MEDINIPUR , W.B. 2. ADDL.CIT, RANGE-HALDIA 3. THE CIT(A), KOLKATA 4. CIT, KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA TRUE COPY, BY ORDER, ASSTT. REGISTRAR , ITAT, KOLKATA TALUKDAR(SR.P.S.)