Smt. Usha Kiran Singh, V. ACIT,

ITA 88/RAN/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 85428 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-11-2014
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: 2000-2001
• Appeal Filed On: 01-11-2013
• Court: TRIBUNAL
• Department Lawyers: CHOUDHURY ORA M JCITLD
• Assessee Lawyers: S K PODDAR; M K CHOUDHURY S LD ARS
• Keywords: Initiation of penalty proceedings

Judgement Text

INCOME TAX APPELLATE TRIBUNAL, CIRCUIT BENCH, RANCHI BEFORE HON'BLE SHRI H.L. KARWA, PRESIDENT , AND HON'BLE SHRI B.R. BASKARAN, ACCOUNTANT M EMBER ITA NO . 88 /RAN/201 3 A.Y 200 0 - 01 SMT. USHA KIRAN SINGH , DHANBAD VS. AC IT, CENTRAL CIR - 1 , DHANBAD PAN: AIMPS6004Q ( APPELLANT ) ( RESPONDENT ) FOR THE APPELLANT : S/ SH RI S.K PODDAR & M.K CHOUDHURY, ADVOCATES, LD.ARS FOR THE RESPONDENT : SHRI CHOUDHURY ORA M , JCIT/LD.DR DATE OF HEARING : 24 - 11 - 2014 DATE OF PRONOUNCEMENT: 24 - 11 - 201 4 ORDER SHRI B.R. BASKARAN, ACCOUNTANT MEMBER : TH E ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 14 - 08 - 2013 PASSED BY LD. CIT(A) , RANCHI CONFIRMING THE PENALTY OF RS. 10,000/ - LEVIED U/S. 27 1(1)(B) OF THE ACT. 2. WE HEARD THE PARTIES AND PERUSED THE RECORDS. WE NOTICE THAT THE ASSESSING OFFICER HAS LEVIED THE PENALTY U/S. 271(1)(B) OF THE ACT FOR NON - COMPLIANCE OF THE NOTICE DATED 7 - 3 - 2006 ISSUED TO THE ASSESSEE , WHEREIN THE ASSESSEE WAS A SKED TO FILE THE COPY OF BANK STATEMENT AND CASH FLOW STATEMENT.. 3. AT THE TIME OF H E ARING , THE LD.AR SUBMITTED THAT THE ASSESSEE IS A PARTNER IN A PARTNERSHIP FIRM NAMED M/S. MAHENDRA SERVICE STATION AND SHE HAS DECLARED INTEREST AND REMUNERATION RECEI VED FROM THE SAID FIRM AS HER INCOME IN THE RETURN OF INCOME FILED BY HER . THE ASSESSING OFFICER ALSO COMPLETED THE ASSESSMEN T BY ACCEPTING RETURNED INCOME OF THE ASSESSEE. THE LD.AR FURTHER SUBMITTED THAT THE ASSESSEE HAD FURNISHED THE NECESSARY DETAIL S TO THE ASSESSING OFFICER DURING THE COURSE OF HEARING AND ON THE LAST OCCASION THE AO ASKED FOR BANK STATEMENT AND 2 ITA NO. 88/RAN/13 SMT. USHA KIRAN SINGH,D BAD CASH FLOW STATEMENT. THE LD. AR SUBMITTED THAT THE ASSESSEE DID NOT SUBMIT THE CASH FLOW STATEMENT , AS SHE DOES NOT HAVE THE SAME . THE BA NK STATEMENT , IN ANY CASE , WAS NOT CONSIDERED BY THE ASSESSING OFFICER. THE LD.AR ALSO POINTED OUT THAT THE ASSESSING OFFICER DID NOT INITIATE THE PENALTY PROCEEDINGS DURING THE COURSE OF ASSESSMENT PROCEEDING AND FURTHER THE AO HAS FAILED TO MAKE ANY ME NTION ABOUT INITIATION OF PENALTY PROCEEDINGS IN THE ASSESSMENT ORDER. ACCORDINGLY HE SUBMITTED THAT THE ASSESSING OFFICER WAS NOT JUSTIFIED IN LEVYING PENALTY U/S 271(1)(B) OF THE ACT AND THE LD CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE SAME. HOWEVER, THE LD D.R SUBMITTED THAT THE IMPUGNED PENALTY WAS LEVIED FOR NON - COMPLIANCE OF THE NOTICE ISSUED BY THE AO. 4. HOWEVER, W E FIND MERIT IN THE CONTENTION S OF LD A.R. IT IS A FACT THAT T HE ASSESSMENT ORDER DOES NOT CONTAIN ANY STATEMENT OR OBSERVATION REGARDING INITIATION OF PENALTY PROCEEDINGS. FURTHER , IT IS ALSO A FACT THAT THE ASSESSING OFFICER DID NOT RELY UPON THE BANK STATEMENT/CASH FLOW STATEMENT FOR COMPLETING THE ASSESSMENT. ACCORDING TO THE ASSESSEE ALL THE NECESSARY DETAILS REQUIRED FOR C OMPLETING THE ASSESSMENT WERE FURNISHED TO THE ASSESSING OFFICER. IT IS ALSO AN UNDISPUTED FACT THAT THE ASSESSEE HAS DECLARED THE INTEREST AND REMUNERATION INCOME FROM THE PARTNERSHIP FIRM AND THE ASSESSING OFFICER HAS ALSO ASSESSED THE SAID INCOME ONLY . UNDER THE SET OF FACTS, WE ARE OF THE VIEW THAT THE EXPLANATION FURNISHED BY THE ASSESSEE AGAINST LEVY OF PENALTY U/S. 271(1)(B) IS A REASONABLE ONE. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE LD.CIT(A) AND DIRECT THE ASSESSING OFFICER TO DELETE THE PENALTY LEVIED OF RS.10,000/ - U/S. 271(1)(B) OF THE ACT . 5 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 24 - 11 - 2014 SD/ - SD/ - [ H.L. KARWA ] [ B.R. BASKARAN ] PRESIDENT ACCOUNTANT MEMBER DT. 24 - 11 - 2014 PLACE : RANCHI 3 ITA NO. 88/RAN/13 SMT. USHA KIRAN SINGH,D BAD PP, SR. PS COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT : SMT. USHA KIRAN SINGH, IV - 8 DOCTOR S C OLONY, JAGJIVAN NAGAR,D BAD. 2 THE RESPONDENT: A CIT, CC - 1, RANCHI 3. .THE CIT, 4.THE CIT(A), 5.DR, ITAT CIRCUIT BENCH, RANCHI 6. GUARD FILE. TRUE COPY, BY ORDER, ASSTT. REGISTRAR 4 ITA NO. 88/RAN/13 SMT. USHA KIRAN SINGH,D BAD 1. DAT E OF DICTATION ............. 24 - 11 - 2014 ....................... 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ........................OTHER MEMBER ....... 2 6 - 11 - 2014 ........................ 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. ..................... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT.................................. 24 - 11 - 2014 ................................................... 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S ................ 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK ....................................... 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ......................................... 8. THE DATE ON WHICH THE FI LE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER ................................................................................................. 9. DATE OF DESPATCH OF THE ORDER ..............................................................