BHARAT MIRPURI, CHENNAI V. ITO NON CORPORATE CIRCLE 9 (1), CHENNAI

ITA 833/CHNY/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1069 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 08-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR
• Assessee Lawyers: ANANNDDEVKUMAR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , . !' , $ % BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO.833/CHNY/2018 ' (' / ASSESSMENT YEAR : 2013-14 SHRI BHARAT MIRPURI, NO.23, HUNTERS ROAD, VEPERY, CHENNAI - 600 007. PAN : AEOPB 0159 H V. THE INCOME TAX OFFICER, NON-CORPORATE CIRCLE 9(1), CHENNAI - 600 034. (*+/ APPELLANT) (,-*+/ RESPONDENT) *+ . / / APPELLANT BY : SHRI ANANNDDEVKUMAR, CA ,-*+ . / / RESPONDENT BY : SHRI R. CLEMENT RAMESH KUMAR, J CIT 0 . 1$ / DATE OF HEARING : 14.08.2018 2!( . 1$ / DATE OF PRONOUNCEMENT : 12.09.2018 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -10, CHENN AI, DATED 21.12.2017, FOR THE ASSESSMENT YEAR 2013-14, CONFIR MING THE PENALTY LEVIED BY THE ASSESSING OFFICER UNDER SECTI ON 271B OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). 2 I.T.A. NO.833/CHNY/18 2. WE HEARD SHRI ANANDDEVKUMAR, THE LD. REPRESENTAT IVE FOR THE ASSESSEE AND SHRI R. CLEMENT RAMESH KUMAR, THE LD. DEPARTMENTAL REPRESENTATIVE. ADMITTEDLY, THE AUDIT REPORT WAS FILED BELATEDLY BEFORE THE ASSESSING OFFICER. EVEN THOUG H IT IS MANDATORY FOR THE ASSESSEE TO FILE THE AUDIT REPORT, THE TIME LIMIT FOR FILING THE SAME IS DISCRETIONARY. THE OBJECT OF FILING THE A UDIT REPORT IS TO ASSIST THE ASSESSING OFFICER IN COMPLETING THE ASSE SSMENT FOR DETERMINATION OF TAXABLE INCOME. SINCE THERE WAS N O IMPEDIMENT IN DETERMINING THE TAXABLE INCOME, AND THE AUDIT REPOR T WAS VERY MUCH AVAILABLE BEFORE THE ASSESSING OFFICER BEFORE COMPL ETION OF ASSESSMENT, THIS TRIBUNAL IS OF THE CONSIDERED OPIN ION THAT IT IS NOT A FIT CASE FOR LEVY OF PENALTY UNDER SECTION 271B OF THE ACT. 3. THE ASSESSEE ALSO CLAIMED BEFORE THE CIT(APPEALS ) THAT HE WAS SICK AND THERE WAS SOME DELAY IN GETTING THE AU DIT REPORT ALSO. THIS CLAIM OF THE ASSESSEE WAS REJECTED BY THE CIT( APPEALS) ON THE GROUND THAT THE ASSESSEE WAS ABLE TO MANAGE THE BUS INESS. MANAGING THE BUSINESS IS ONE THING AND GETTING AUDI T REPORT IS ANOTHER THING. FOR AUDITING THE ACCOUNTS, THE ASSE SSEE HAS TO INSTRUCT HIS AUDITOR. THEREFORE, THAT CANNOT BE A REASON FOR LEVYING PENALTY. IN VIEW OF THE ABOVE, THIS TRIBUNAL IS UN ABLE TO UPHOLD THE 3 I.T.A. NO.833/CHNY/18 ORDER OF THE CIT(APPEALS). ACCORDINGLY, ORDERS OF BOTH THE AUTHORITIES BELOW ARE SET ASIDE AND THE PENALTY LEV IED BY THE ASSESSING OFFICER UNDER SECTION 271B OF THE ACT IS DELETED. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 12 TH SEPTEMBER, 2018 AT CHENNAI. SD/- SD/- (. !' ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 4 /DATED, THE 12 TH SEPTEMBER, 2018. KRI. . ,156 76(1 /COPY TO: 1. *+ /APPELLANT 2. ,-*+ /RESPONDENT 3. 0 81 () /CIT(A)-10, CHENNAI-34 4. PRINCIPAL CIT-7, CHENNAI. 5. 69 ,1 /DR 6. :' ; /GF.