Shri Ashokkumar Devichand Lodha, Ahmedabad V. The ACIT, TDS Range, Ahmedabad

ITA 942/AHD/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8277 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 16-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH BEFORE: SHR I RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER SHRI ASHOKKUMAR DEVICHAND LODHA, PROP. ROYAL FINISHING WORKS, 305, GANGARAM CHAMBERS RELIEF ROAD, AHMEDBAD - 380001 PAN: AAHPL2626E (APPELLANT) VS THE ACIT, TDS RANGE, AHMEDABAD (RESPONDENT) REVENUE B Y : S H RI SAURABH SINGH , SR. D . R. ASSESSEE BY: S H RI HARDIK VORA , A.R. DATE OF HEARING : 12 - 04 - 2 018 DATE OF PRONOUNCEMENT : 14 - 05 - 2 018 / ORDER P ER : AMARJ IT SINGH, ACCOUNTANT MEMBER : - THIS ASSESSEE S APPEAL FOR A.Y. 2009 - 10 , ARIS ES FROM ORDER OF THE CIT(A) - 8 , AHM EDABAD DATED 26 - 03 - 2015 , CONFIRMING THE PENALTY OF RS. 68,670/ - , IN PROCEEDINGS UNDER SECTION 271C OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2 . THE BRIEF FACTS OF THE CASE IS THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS U/S 143(3) THE ASSESSING OFFICER HAS MADE DISALLOWANCE OF RS. 6 , 86 , 697/ - U/S. 40(A)(IA) OF THE ACT FOR NO T DEDUCTIN G OF TAX ON INTEREST PAYMENT AS PER PROVISION OF SECTION 194A OF THE ACT. THEREAFTER THE ASSESSING OFFICER HAS REFERRED THE CASE TO THE JCIT,TDS RANGE FOR INITIATION OF PENALTY U/S 271 C OF THE ACT. DURING THE COURSE OF PENALTY PROCEEDINGS, THE ASSESSEE HAS BROUGHT TO THE I T A NO . 942 / A HD/20 15 A SSESSMENT YEAR 200 9 - 10 I.T.A NO. 942 /AHD/20 15 A.Y. 2009 - 10 PAGE NO SHRI ASHOKKUMAR DEVICHAND LODHA VS. ACIT 2 NOTICE OF THE JCIT TDS RANGE THAT TAX WAS NOT DEDUCTED AS THE PAYEE HAD FURNISHED NIL TAX DEDUCT ION CERTIFICATE U/S. 197( 1 ) OF T HE ACT. HOWEVER THE JCIT TDS RANGE OBSERVED THAT THE AFORESAID CERTIFICATE WAS EFFECTIVE FROM 18 TH AUGUST, 2008 TO 31 ST MARCH, 2009. CONSEQUENTLY , JCIT TDS RANGE CONCLUDED THAT THE ASSESSEE WAS LIABLE TO DEDUCT TA X ON AN INTEREST PAYMENT TO M/S. CITY FINANCE CONSUMER LTD. FOR THE PERIOD 01 - 04 - 2008 TO 18 TH AUGUST, 2018. THEREFORE , A PENALTY OF RS . 68 , 670/ - WAS LEVIED U/S. 271(1)(C) OF THE ACT. 3. AGG RIEVED ASSESSEE FILED APPEAL BEFORE THE LD. CIT(A) .THE LD.CIT(A) HAS SUSTAINED THE IMPUGNED PENALTY. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD CAREFULLY . AFTER PERUSAL OF FACTS ON RECORD WE OBSERVE THAT THE ASSESSEE HAS NO T DEDUCTED TAX ON THE INTEREST PAYMENT MADE TO M/S. CITI FINANCIAL CONSUMER (I) L TD ON THE GR OUND THAT APPLI CATION OF THE RECIPIENT OF INTEREST FOR ISSUANCE OF CERTIFICATE U/S. 197(1) OF T H E A C T WHICH WAS PENDING BEFORE THE ASSESSING OFFICER. T HE CERTI FICATE U/S. 197(1) WAS ISSUED ON 18/08/2008 TO BE EFFECTIVE FROM 18/08/2008 TO 31/03/2009. I T WAS ALSO BROUGHT TO OUR NOTICE BY THE LD. COUNSEL THAT EVEN IN THE NEX T FINANCIAL YEAR NIL RATE OF DEDUCTION OF TAX CERTIFICATE U/S. 197(1) OF THE ACT W AS ISSUED ON 29/0 6/2009 . AFTER CONSIDERING THE ABOVE FACT, WE CONSIDER THAT THERE APPEAR S TO BE A REASONABLE CAUSE FOR NOT DEDUCTING TAX FOR DIMINUTIVE PERIOD DURING THE YEAR UNDER CONSIDERATION DUE TO NON - CLARITY ON THE DATE OF EFFECTIVENESS OF THE CERTIFICATE. IN VIEW OF THE ABOVE FACTS , WE ARE NOT INCLINED WITH THE DECISION OF THE LD. CIT(A) THEREFORE WE DELETE THE IMPUGNED PENALTY LEVIED IN THE CASE OF THE ASSESSEE . 5. IN THE RESULT , THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 14 - 05 - 201 8 SD/ - SD/ - ( RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER I.T.A NO. 942 /AHD/20 15 A.Y. 2009 - 10 PAGE NO SHRI ASHOKKUMAR DEVICHAND LODHA VS. ACIT 3 AHMEDABAD : DATED 14 /05 /2018 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,