Saamya Biotech (India) Ltd., Hyderabad V. ITO, Ward-15(2), Hyderabad

ITA 844/HYD/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 66329 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 29-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M H NAIK
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Reasonable cause
• Section: 133A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER I.T.A. NO. 844/HYD/2012 A.Y. 2007-08 I.T.A. NO. 845/HYD/2012 A.Y. 2008-09 I.T.A. NO. 846/HYD/2012 A.Y. 2009-10 M/S. SAAMYA BIOTECH (INDIA) LTD., HYDERABAD PAN: AAHCS2210C VS. THE INCOME TAX OFFICER WARD-15(2) HYDERABAD APPELLANT RESPONDENT APPELLANT BY: SRI P. MURALI MOHAN RAO RESPONDENT BY: SRI M.H. NAIK DATE OF HEARING: 17 .0 9 .2012 DATE OF PRONOUNCEMENT: 28.09.2012 O R D E R PER CHANDRA POOJARI, AM: THESE THREE APPEALS BY THE ASSESSEE ARE DIRECTED A GAINST DIFFERENT ORDER OF THE CIT(A)-II, HYDERABAD DATED 9.3.2012 FO R ASSESSMENT YEARS 2007-08, 2008-09 AND 2009-10. 2. THE GRIEVANCE OF THE ASSESSEE HEREIN IS WITH REGARD TO CONFIRMING OF LEVY OF PENALTY U/S. 272A(2)(K) OF THE INCOME-TA X ACT, 1961 BY EX- PARTE ORDER. IN THESE CASES THE ASSESSEE FILED AP PEALS BEFORE THE CIT(A) CHALLENGING LEVY OF PENALTY BY THE ASSESSING OFFICE R U/S. 272A(2)(K) OF THE ACT FOR FAILURE TO DELIVER OR CAUSE TO BE DELIV ERED A COPY OF THE STATEMENT WITHIN THE TIME SPECIFIED IN SUBSECTION ( 3) OF SECTION 200 OR THE PROVISO TO SUBSECTION (3) OF SECTION 206C OF TH E ACT. BECAUSE FACTS ALL IN THESE APPEALS ARE SIMILAR, WE CONSIDER THE F ACTS NARRATED IN ASSESSMENT YEAR 2007-08. 3. BRIEF FACTS OF THE ISSUE ARE THAT THE ASSESSEE-COMP ANY IS ENGAGED IN THE BUSINESS OF MANUFACTURE AND SALE OF BIO-PHAR MA PRODUCTS AND IS ON THE ROLLS OF INCOME TAX OFFICER, WARD-15(2), HYD ERABAD WITH ITS TAN NO. HYDS17129A. A TDS SURVEY U/S. 133A OF THE IT A CT WAS CONDUCTED I.T.A. NOS. 844-846/HYD/2012 M/S. SAAMYA BIOTECH (INDIA) LTD. ========================== 2 ON 18.3.2009 AND DURING THE COURSE OF SURVEY, IT WA S NOTICED THAT THE ASSESSEE HAD FAILED TO FILE A QUARTERLY RETURNS I.E ., 24Q & 26Q FOR FY 2006-07 WITHIN STIPULATED TIME AND THERE WAS A DELA Y FOR ALL THE FOUR QUARTERS. AS PER THE PROVISIONS OF SECTION 200(3) OF THE ACT READ WITH RULE 31A OF IT RULES, THE DEDUCTOR IS UNDER THE STA TUTORY OBLIGATION TO FURNISH QUARTERLY STATEMENTS FOR DETAILS OF THE TAX DEDUCTION AT SOURCE TO THE PRESCRIBED AUTHORITY AND IN THE PRESCRIBED F ORM WITHIN THE STIPULATED TIME AND NON-COMPLIANCE IN THIS REGARD A TTRACTS, THE PENAL CONSEQUENCES U/S. 271A(2)(K) OF IT ACT, 1961. THER E WAS A DELAY IN FILING THE QUARTERLY STATEMENTS WHICH WAS GIVEN AS BELOW: QUARTER DUE DATE FOR FILING: 24Q DATE OF FILING DELAY IN DAYS TOTAL I 15.07.2006 06.09.2007 420 II 15.10.2006 06.09.2007 327 III 15.01.2007 06.09.2007 235 IV 15.06.2007 06.09.2007 82 1064 4. AFTER ISSUING THE SHOW-CAUSE-NOTICE THE ASSESSING O FFICER LEVIED PENALTY U/S. 272A(2)(K) OF THE ACT AT RS. 2,12,800. SIMILAR PENALTY WAS LEVIED FOR A.Y. 2008-09 AT RS. 1,90,200 AND FOR A.Y . 2009-10 AT RS. 1,64,700. ON APPEAL, THE CIT(A) GIVEN A NOTICE FIX ING THE CASE FOR HEARING VIDE NOTICE DATED 29.6.2011 ON 14.7.2011 FO R ALL THESE ASSESSMENT YEARS. NON APPEARED FOR THE ASSESSEE. THE CIT(A) ISSUED A FRESH NOTICE ON 17.2.2012 FIXING THE DATE OF HEARIN G ON 1.3.2012. NONE APPEARED FOR THE ASSESSEE ON THE DATED FIXED FOR HE ARING. THEREAFTER THE CIT(A) DECIDED THE ISSUE EX-PARTE BY HOLDING THAT T HERE IS NO REASONABLE CAUSE FOR DELAY IN FILING THE QUARTERLY STATEMENTS WITHIN THE STIPULATED TIME AND THE REASON FOR DEFAULT IS NOT S UFFICIENTLY EXPLAINED. AGAINST THIS THE ASSESSEE IS IN APPEAL BEFORE US IN ALL THESE ASSESSMENT YEARS. 5. THE LEARNED AR SUBMITTED THAT THE ASSESSEE MAY BE G IVEN ONE MORE OPPORTUNITY TO EXPLAIN THE REASON FOR DELAY IN FURNISHING THE QUARTER DUE DATE FOR FILING: 26Q DATE OF FILING DELAY IN DAYS I 15.07.2006 06.09.2007 420 II 15.10.2006 06.09.2007 327 III 15.01.2007 06.09.2007 235 IV 15.06.2006 06.09.2007 82 1064 I.T.A. NOS. 844-846/HYD/2012 M/S. SAAMYA BIOTECH (INDIA) LTD. ========================== 3 QUARTERLY RETURNS IN FORM NO. 24Q AND 26Q FOR THESE ASSESSMENT YEARS IN TERMS OF SECTION 200(3) OF THE ACT R.W. RULE 31A OF THE INCOME-TAX RULES, 1962. 6. THE DR SUBMITTED THAT THERE WAS NOT ONLY DELAY IN F URNISHING THE STATUTORY RETURNS IN THE PRESCRIBED FORM NO. 24 Q/26Q FOR THESE ASSESSMENT YEARS BUT ALSO IN CERTAIN QUARTERS THERE WAS FAILURE ON THE PART OF THE ASSESSEE TO DEDUCT TDS AND THE ASSESSEE NOT REPRESENTED BEFORE THE CIT(A) AND THIS KIND OF ATTITUDE OF THE ASSESSEE DOES NOT REQUIRE LIBERAL APPROACH AND PENALTY HAS TO BE CONF IRMED. 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED MATERIAL ON RECORD. IN THE PRESENT CASES, THE CIT(A) FIXED THEM FOR HEA RING VIDE NOTICE DATED 29.6.2011 ON 14.7.2011. NON APPEARED FOR THE ASSESSEE. ONCE AGAIN THE CASES WERE FIXED FOR HEARING VIDE NOTICE DATED 17.2.2012 ON 1.3.2012. NONE APPEARED FOR THE ASSESSEE. AFTER T HAT THE CIT(A) DECIDED THE ISSUE ON MERIT. BEFORE US THE LEARNED AR SUBMITTED THAT WHEN THE CIT(A) ISSUED A NOTICE FOR HEARING THE DIR ECTORS WERE OUT OF STATION FOR MOBILISING FUNDS TO THEIR BUSINESS AND NON-APPEARANCE BEFORE THE CIT(A) IS NON INTENTIONAL AND PRAYED FOR ONE MORE OPPORTUNITY. WE ACCEDE TO THE REQUEST OF THE ASSES SEE'S COUNSEL. ACCORDINGLY, WE DIRECT THE CIT(A) TO GIVE ONE MORE OPPORTUNITY TO PRESENT THE ASSESSEE'S CASES. ON THE GIVEN DATE IF THE ASSESSEE FAILED TO AVAIL THE OPPORTUNITY ONCE AGAIN, THE CIT(A) IS AT LIBERTY TO TAKE DECISION IN ACCORDANCE WITH LAW. 8. IN THE RESULT, APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES ONLY. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH SEPTEMBER, 2012. SD/ - (SAKTIJIT DEY) JUDICIAL MEMBER SD/ - (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED 28 TH SEPTEMBER, 2012 TPRAO I.T.A. NOS. 844-846/HYD/2012 M/S. SAAMYA BIOTECH (INDIA) LTD. ========================== 4 COPY FORWARDED TO: 1. M/S. SAAMYA BIOTECH (INDIA) LTD., C/O. M/S. P. MURA LI & CO., CHARTERED ACCOUNTANTS, 6-3-655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD-500 082. 2. THE INCOME TAX OFFICER, WARD - 15(2), HYDERABAD. 3 . THE CIT(A) - II, HYDERABAD 4 . THE CIT - I, HYDERABAD. 5 . THE DR A BENCH, ITAT, HYDERABAD