M/s U.P State Agro Industrial Corporation Ltd., Lucknow V. The Dy. Commissioner of Income Tax, Lucknow

ITA 722/LKW/2013

• Counselvise Citation: 72223714 RSA 2013
• Duration Of Justice: 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-04-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 06-02-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 29-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK MISHRA
• Keywords: Reasonable cause; Revised return
• Section: 139

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.722/LKW/2013 ASSESSMENT YEAR:2009 - 10 U.P. STATE AGRO INDUSTRIAL CORPORATION LIMITED, 22, BABA SAHEB BHIM RAO AMBEDKAR MARG, LUCKNOW. PAN:AAACU2653G VS. DY.C.I.T., RANGE - VI, LUCKNOW. (APPELLANT) (RESPONDENT) APPELLANT BY SHRI RAKESH GARG, ADVOCATE RESPONDENT BY SHRI VIVEK MISHRA, CIT, D.R. DATE OF HEARING 06/02/2014 DATE OF PRONOUNCEMENT 1 1 /04/2014 O R D E R PER A. K. GARODIA, A.M. THIS IS ASSESSEES APPEAL DIRECTED AGAINST THE ORDER PASSED BY LEARNED CIT(A) - II, LUCKNOW DATED 22/08/2013 FOR ASSESSMENT YEAR 2009 - 10. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: 1. THE LD. C.I.T. (APPEALS) - II, LUCKNOW ERRED ON FACTS AND IN LAW IN UPHOLDING PENALTY OF RS.4,73,65,000/ - U/S 271(1)(C) OF I.T. ACT WITH RESPECT TO ADDITIONAL INCOME OF RS.15,32,69,323.00 VOLUNTARILY SHOWN IN THE ASSESSMENT PROCEEDING ON THE BASIS OF T ENTATIVE BALANCE SHEET AND INCOME ARRIVED BY COMPILATION OF ACCOUNTS. 2. THE LD. C.I.T.(APPEALS) - II, DID NOT APPRECIATE THAT THE CORPORATION VOLUNTARY SHOWN INCOME OF RS.18,57,52,323 - 00 ON THE BASIS OF COMPILED ACCOUNTS IN THE COURSE OF ASSESSMENT PROCEED ING AS THE SAME WAS NOT ARRIVED AT THE TIME OF FILING OF RETURN FOR A. Y. 2009 - 10 ON THE BASIS OF TENTATIVE ACCOUNTS. 2 3. THE LD. C.I.T.(APPEALS) - II, LUCKNOW FAILED TO UNDERSTAND THAT THE ASSESSEE IS A STATE GOVERNMENT CORPORATION AND HAS DIVISIONS ALL OVE R U.P. WHICH ARE REQUIRED TO BE SEPARATELY AUDITED BY AUDITORS APPOINTED THROUGH C & AG. THE STATUTORY AUDITORS WERE NOT APPOINTED BY THE GOVERNMENT UP TO THE DATE OF FILING OF RETURN OF A. Y. 2009 - 10. DUE TO THIS REASONS, ACCOUNTS WERE TENTATIVELY PREPARE D AND RETURN WAS FILED AT ESTIMATED INCOME OF RS.3,24,83,000/ - . 3.1 THE LD. C.I.T. (APPEALS) - II, LUCKNOW DID NOT APPRECIATE THAT THERE WAS A REASONABLE CAUSE, DUE TO THIS REASON CORRECT INCOME COULD NOT BE COMPUTED AT THE TIME OF FILING OF RETURN AND THE SAME WAS VOLUNTARILY SHOWN IN THE COURSE OF ASSESSMENT PROCEEDING AND DUE TAX HAS BEEN PAID AND THE SAME WAS ACCEPTED BY LD. A.O. 4. THAT THE INCOME VOLUNTARILY SHOWN IN THE ASSESSMENT PROCEEDING BY SUBMITTING THE COMPILED ACCOUNTS, AND DUE TAX HAS BEEN P AID. THE SAME WERE VERIFIED AND ACCEPTED BY THE LD. A.O. THUS, THERE IS NO INTENTION OF FURNISHING IN INACCURATE PARTICULARS OF INCOME OR DISCLOSING INCORRECT INCOME. 5. THE PENALTY UPHELD IS HIGHLY EXCESSIVE, CONTRARY TO THE FACTS, LAW AND PRINCIPLE OF N ATURAL JUSTICE. 3. IT WAS SUBMITTED BY LEARNED A.R. OF THE ASSESSEE THAT ORIGINAL RETURN OF INCOME WAS FILED BY THE ASSESSEE ON THE BASIS OF TENTATIVE BALANCE SHEET AND PROFIT & LOSS ACCOUNT AT AN INCOME OF RS.324.83 LAC. SUBSEQUENTLY, THE ASSESSEE FIL ED REVISED RETURN OF INCOME ON 19/12/2009 DECLARING AN INCOME OF RS.17,93,91,856/ - . HE ALSO SUBMITTED THAT INCOME WAS ASSESSED BY THE ASSESSING OFFICER ALSO AT THE SAME FIGURE OF RS.17,93,91,856/ - . HE ALSO SUBMITTED THAT THIS IS NOT THE CASE OF THE ASSES SING OFFICER THAT THE REVISED RETURN FILED BY THE ASSESSEE WAS NOT VALID. HE SUBMITTED THAT UNDER THESE FACTS, PENALTY IS NOT JUSTIFIED . 3 4. LEARNED D.R. OF THE REVENUE SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT THE ORIGINAL RETURN OF INCOME WAS FILED BY THE ASSESSEE ON THE BASIS OF TENTATIVE BALANCE SHEET AND PROFIT & LOSS ACCOUNT BUT WITHIN THE TIME ALLOWED U/S 1 3 9 ( 4 ) OF THE ACT TO REVISE THE RETURN, THE A SSESSEE HAS FILED REVISED RETURN OF INCOME AND THE INCOME DECLARED BY THE ASSESSEE HAS BEEN ACCEPTED BY THE ASSESSING OFFICER WITHOUT MAKING ANY ADDITION THEREIN. UNDER THESE FACTS, WE ARE OF THE CONSIDERED OPINION THAT NO PENALTY IS JUSTIFIED BECAUSE IT IS NOT A CASE OF CONCEALMENT SINCE THE INCOME DECLARED BY THE ASSESSEE IN THE REVISED RETURN OF INCOME FILED WITHIN THE TIME ALLOWED HAS BEEN ACCEPTED BY THE ASSESSING OFFICER WITHOUT MAKING ANY ADDITION THEREIN. WE, THEREFORE, DELETE THE PENALTY. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 1 /04/2014. *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR