Asian Construction Company, AJMER V. JCIT, UDAIPUR

ITA 9/JODH/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5295 (ITAT-JODHPUR)
• Duration Of Justice: 1 year(s) 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 02-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L MOURYA
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELALTE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE: SHRI N. S. SAINI, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER I.T.A.NO.09/JODH/2015 ASSESSMENT YEAR: 2011-12 ASIAN CONSTRUCTION COMPANY, 716/A, 3 RD STREET, BHARI GANJ, AJMER (RAJ.) PAN :JMDHMO5973C VS. THE JT. COMMISSIONERS OF INCOME TAX, RANGE TDS, 13-B, SAHELI MARG, UDAIPUR (RAJASTHAN) APPELLANT RESPONDENT APPELLANT BY NONE RESPONDENT BY SHRI S. L. MOURYA, DR DATE OF HEARING: 11.03.2016 DATE OF PRONOUNCEMENT: 11.03.16 O R D E R PER: GEORGE MATHAN, J.M. : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED CIT (A), AJMER PASSED IN APPEAL NO.671/2012-13 DATE D 10-11-2014 FOR ASSESSMENT YEAR 2009-10 AGAINST CONFIRMATION OF PEN ALTY LEVIED U/S 272A(2)(K) OF THE IT ACT 2. NONE REPRESENTED ON BEHALF OF THE ASSESSEE. SHRI S. L. MOURYA, LEARNED DR REPRESENTED ON BEHALF OF THE REVENUE. IT WAS SUBMITTED BY THE LEARNED DR THAT THE ASSESSEE IS A COMPANY WHICH IS DOING THE BUSINESS OF CIVIL CONTRACT. IT WAS A SUBMISSION THAT THE ASSESS EE COMPANY HAD FAILED TO FILE QUARTERLY STATEMENT OF TDS ON THE DUE DATE AND THERE WAS DELAY OF 424 DAYS IN FILING THE SAID STATEMENT. THE ASSESSEE WAS UNABLE TO GIVE ANY 2 ITA NO.09/JODH/2015 REASONABLE CAUSE AND CONSEQUENTLY PENALTY HAD BEEN LEVIED AT RS.100/- PER DAY. IT WAS A SUBMISSION THAT THE LEARNED CIT (A) H AD CONFIRMED THE LEVY OF PENALTY. IT WAS A SUBMISSION THAT THE ORDER OF THE LEARNED CIT (A) WAS LIABLE TO BE CONFIRMED. 3. WE HAVE CONSIDERED THE SUBMISSIONS. A PERUSAL OF THE ORDER OF THE LEARNED CIT (A) SHOWS THAT THE ASSESSEE IS A CONTRA CTOR FOR VARIOUS GOVERNMENT AGENCIES BEING CPWD, PWD AND MES ETC. TH E ASSESSEE IN REPLY TO THE PENALTY NOTICE HAS SPECIFIED THAT THE TDS DEPOSIT HAD BEEN MADE HOWEVER RETURNS THE RETURNS COULD NOT BE FILED IN T IME DUE TO OVERSIGHT BY THE ACCOUNTANT OF THE ASSESSEE COMPANY. IMMEDIATELY WHE N THE ASSESSEE AND ITS CHARTERED ACCOUNTANT CAME TO NOTICE THIS DEFAUL T, THEY CAME TO BE COMPLIED. IT IS NOT A CASE WHERE THE ASSESSEE IS DE LIBERATE AND REPEATED OFFENDER IN RESPECT OF FILING TDS RETURN. IT HAS AL SO BEEN STATED THAT THAT THE ASSESSEE MOST OF THE TIME HAD TO REMAIN OUT OF AJME R FOR HIS WORK. HAVING CONSIDERED THESE FACTS IT IS NOTICED THAT THE ASSES SEE HAS PAID ITS DUE TAXES AND THE BREACH IS NOT A DELIBERATE ONE BUT A VENIAL BREACH OF TECHNICAL NATURE. THIS BEING SO, WE ARE OF THE VIEW THAT THE BONA FID E OF THE ASSESSEE STANDS ESTABLISHED AND THE BONA FIDE CLAIM OF THE ASSESSEE IS REASONABLE. CONSEQUENTLY, WE ARE OF THE VIEW THAT THE PENALTY L EVIED/S272A (2)(K) OF THE ACT IS NOT LEVIABLE IN THE ASSESSEES CASE. CONSEQU ENTLY, THE PENALTY LEVIED BY THE A O AND CONFIRMED BY THE LEARNED CIT (A) IS HEREBY CANCELLED. 3 ITA NO.09/JODH/2015 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 11.03.2016. SD/- SD/- (N. S. SAINI) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER JODHPUR, DATED: 11 TH MARCH, 2016 LAKSHMIKANTA LAKSHMIKANTA LAKSHMIKANTA LAKSHMIKANTA DEKA/ DEKA/ DEKA/ DEKA/- -- - COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. CIT CONCERNED 4. CIT (A) CONCERNED 5. DR, ITAT, JODHPUR 6. GUARD FILE BY ORDER, SR. PRIVATE SECRETARY DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 11.03.16 SR.PS 2. DRAFT PL ACED BEFORE AUTHOR 11 .03.16 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 11.03.16 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 14.03. 16 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 14.03.16 SR.PS 6. DATE OF PRONOUNCEMENT NA SR.PS 7. FILE SENT TO THE BENCH CLERK SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER