Sh. Rajinder Pal Dhiman, Kangra V. Addl. CIT, Mandi

ITA 943/CHANDI/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68567 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 07-11-2013
• Assessment Year: 2005-2006
• Appeal Filed On: 18-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 2

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A CHANDIGARH BEFORE SHRI T.R. SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 943/CHD/2012 ASSESSMENT YEAR: 2005-06 SHRI RAJINDER PAL DHIMAN, VS THE ACIT , C/O RAVINDER SOOD, ADVOCATE. MANDI, H.P. PALAMPUR, DISTRICT KANGRA PAN NO. ABVPD0836B (APPELLANT) (RESPONDENT) DATE OF HEARING : 7.11.2013 DATE OF PRONOUNCEMENT : 22.11.2013 APPELLANT BY : SHRI ASHWANI KUMAR RESPONDENT BY : SHRI AKHILESH GUPTA ORDER PER T.R.SOOD, A.M. THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 19.7.2012 OF LD. CIT(A), SHIMLA. 2. IN THIS APPEAL THE ASSESSEE HAS RAISED VARIOUS G ROUNDS BUT AT THE TIME OF HEARING, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THA T THE ONLY DISPUTE INVOLVED IS REGARDING CONFIRMATION OF PENALTY OF RS. 1 LAC U/S 271E. 3. AFTER HEARING BOTH THE PARTIES, WE FIND THAT DUR ING THE COURSE OF ASSESSMENT PROCEEDINGS IT WAS NOTICED THAT ASSESSEE HAD MADE PAYMENT OF RS. 1 LAC THROUGH BEARER CHEQUE TO SHRI NANAK CHAND TOWAR DS UNSECURED LOANS, THEREFORE, PENALTY PROCEEDINGS U/S 271E WERE INITIA TED FOR VIOLATION OF SECTION 2 269T OF THE ACT. IN RESPONSE TO SHOW CAUSE NOTICE IT WAS SUBMITTED THAT BEARER CHEQUE WAS PAID BECAUSE SHRI NANAK CHAND WAS IN URG ENT NEED OF MONEY AND THERE WAS NO MALAFIDE INTENTION ON THE PART OF THE ASSESSEE. THE ASSESSING OFFICER DID NOT FIND FORCE IN THE SAME AND LEVIED A PENALTY OF RS. 1 LAC. ON APPEAL, THE LD. CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER ON EX.PARTE BASIS BECAUSE NO REPRESENTATION WAS MADE B EFORE HER. 4. BEFORE US LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT COUNSEL FOR THE ASSESSEE HAS TO COME FROM PALAMPUR TO SOLAN IN HIMA CHAL PRADESH, WHERE CIT(A) IS LOCATED AND FOR SMALL MATTERS IT IS NOT P OSSIBLE TO PHYSICALLY PRESENT, THEREFORE, WRITTEN SUBMISSIONS HAVE BEEN SENT THROU GH POST. COPIES OF THE SUBMISSIONS HAVE BEEN PLACED BEFORE US. IT WAS NOT ICED THAT THE APPEAL HAD BEEN DECIDED EARLIER ALSO ON EX. PARTE BASIS WHICH HAS B EEN RESTORED BY THE TRIBUNAL IN ITA NO. 76/CHD/2011, THEREFORE, LD. COUNSEL SUBM ITTED THAT HE WOULD LIKE TO ARGUE THE APPEAL ON MERIT ALSO BECAUSE BEING A SMAL L MATTER NO PURPOSE WOULD BE SERVED IN RESTORING THE APPEAL TO THE CIT(A). HE SUBMITTED THAT ASSESSEE HAD TAKEN A LOAN OF RS. 1,50,000/- FROM SHRI NANAK CHA ND WHO IS BROTHER OF THE ASSESSEE. SHRI NANAK CHAND DOES NOT HAVE ANY BANK ACCOUNT AND IN THIS REGARD HE REFERRED TO A CERTIFICATE ISSUED BY PNB KARSOG B RANCH, DISTRICT MANDI (HIMACHAL PRADESH). HE FURTHER SUBMITTED THAT SHRI NANAK CHAND WAS IN URGENT NEED OF MONEY BECAUSE HE HAS TO GET HIS SON ADMITTE D THAT IS WHY THE AMOUNT WAS PAID THROUGH BEARER CHEQUE, THEREFORE, THIS SHO ULD BE CONSTRUED AS REASONABLE CAUSE AND IN THIS REGARD HE RELIED ON TH E DECISION OF HON'BLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT V SUNIL KUM AR GOEL 315 ITR 163(P&H) 5. ON THE OTHER HAND, THE LD. DR STRONGLY SUPPORTE D THE ORDER OF ASSESSING OFFICER AND CIT(A). 3 6. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE FIND THAT ADMITTEDLY LOANS FROM SHRI NANAK CHAND WAS SHOWN AS OPENING BALANCE. THE AMOUNT OF RS. 1 LAKH HAVE BEEN PAID THROUGH BEARER CHEQUE DURING TH E YEAR. THE BEARER CHEQUE WAS GIVEN BECAUSE SHRI NANAK CHAND WAS NOT HAVING A NY BANK ACCOUNT AS CERTIFIED BY THE BANK IN KARSOG, HIMACHAL PRADESH. FURTHER, HE WAS RELATED TO THE ASSESSEE AND MONEY WAS PAID BECAUSE OF THE URGE NT NEED. THIS SEEMS TO BE A REASONABLE CAUSE AND IN OUR OPINION THIS IS NOT A F IT CASE OF LEVY OF PENALTY. ACCORDINGLY, WE DELETE THE PENALTY. 7. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 22-11-2103 SD/- SD/- (SUSHMA CHOWLA) (T.R.SOOD) JUDICIAL MEMBER ACCOUNTANT MEMER DATED : 22 ND NOVEMBER, 2013 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH