Ample Mart , Bangalore V. Assistant Commissioner of Income Tax CPC-TDS , Ghazizbad

MA 67/BANG/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 3774 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 1 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 01-11-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 30-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DR P V PRADEEP KUMAR
• Assessee Lawyers: H N KHINCHA
• Keywords: Reasonable cause; TDS
• Section: 234E; 200A; 201; 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES C BENCH: BANGALORE BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER M.P. NOS.66 & 67/BANG/2019 (IN ITA. NO S . 2332 & 2333 /BANG/2018 ) (ASSESSMENT YEAR: 201 4 - 15 ) M/S. AMPLE MART, NO.362/7, 16 TH MAIN ROAD, 4 TH BLOCK, JAYANAGAR, BANGALORE - 560 041 PAN: AAFFB6839B VS. ASST. COMMISSIONER OF INCOME TAX , CPC TDS, GHAZIABAD. ( PETITIONER ) (RESPONDENT) PETITIONER BY: SHRI H. N . KHINCHA, C.A. RESPONDENT BY: SHRI DR. P. V. PRADEEP KUMAR, ADDL. CIT (D.R) DATE OF HEARING : 09.08.2019 DATE OF PRONOUNCEMENT : 01.11 .2019 O R D E R PER SHRI PAVAN KUMAR GADALE, JM : THE ASSESSEE HAS FILED MISC. PETITION NOS.66 & 67/BANG/2019 IN THE COMMON ORDER OF TRIBUNAL IN ITA NOS. 2332 & 2333/BANG/2018 DT. 08.03.2019 FOR THE ASSESSMENT YEAR 2014 - 15. 2 M.P. NOS.66 & 67/BANG/2019 (IN ITA NOS.2332 & 2333/BANG/20 - 18) 2. THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THE TRIBUNAL HAS REMITTED THE MATTER TO THE FILE OF THE LEARNED CIT(APPEALS) FOR EXAMINATION AFRESH ON MERITS AFTER CONDONING THE DELAY IN FILING THE APPEAL BEFORE THE LEARNED CIT(APPEALS) BUT WITH COST . FOR THE SAKE OF CONVENIENCE, WE SHALL TAKE UP THE M.P. NO.66/BANG/2019. 3. THE LEARNED AUTHORISED REPRESENT ATIVE SUBMITTED THAT THE ASSESSEE IS A PARTNERSHIP FIRM AND HAS RECEIVED INTIMATION UNDER SECTION 200A / 206 CB OF INCOME TAX ACT DT.15.11.2016 DETERMINING THE AMOUNT PAYABLE OF RS.53,560 FOR THE QUARTER 1 OF F.Y. 2013 - 14 RELEVANT TO ASSESSMENT YEAR IS 201 4 - 15 WHICH INCLUDES INTEREST ON LATE FEE OF RS.16,758 AND LATE FILING FEE UNDER SECTION 234E OF RS.36,800. THE ASSESSEE HAS FILED THE APPEAL AGAINST THE INTIMATION WITH THE L EARNED CIT(APPEALS) WITH CONDONATION PETITION FOR DELAY IN FILING THE APPEAL WHER EAS THE LEARNED CIT(APPEALS) HAS NOT CONDONED THE DELAY OF 412 DAYS IN FILING THE APPEAL AND DISMISSED THE ASSESSEE'S APPEAL. AGGRIEVED BY THE ORDER OF LEARNED CIT(APPEALS), THE ASSESSEE HAS FILED AN APPEAL WITH THE TRIBUNAL. W HERE AS HON'BLE TRIBUN A L C ONSIDERING THE G ROUNDS OF APPEAL, FACTS , SUBMISSIONS AND R EASONABLE CAUSE 3 M.P. NOS.66 & 67/BANG/2019 (IN ITA NOS.2332 & 2333/BANG/20 - 18) AND RELYING ON THE JUDICIAL DECISIONS HAS CONDONED THE DELAY IN FILING THE APPEAL AND RESTORED THE APPEAL TO THE FILE OF LEARNED CIT(APPEALS) FOR FRESH EXAMINATION ON MERITS SUBJEC T TO PAYMENT OF RS.50,000 TO BE DEPOSITED IN ITAT BAR ASSOCIATION ACCOUNT WITHIN A PERIOD OF 15 DAYS FROM THE DATE OF RECEIPT OF THE ORDER. THE LEARNED AUTHORISED REPRESENTATIVE EMPHASIZED THAT THE TRIBUNAL ON MERITS HAS CONDONED THE DELAY AND RESTORED THE MATTER TO THE FILE OF LEARNED CIT(APPEALS) FOR FRESH ADJUDICATION CONSIDERING THE SUFFICIENT AND REASONABLE CAUSE BUT HAS ALSO MADE A CONDITIONAL DIRECTION THAT RS.50,000 COST HAS TO BE DEPOSITED WHERE LD. AR PRAYED THAT THE COST IMPOSED IS EXORBITAN T CONSIDERING THE LIABILITY / DEMAND OF THE ASSESSEE AND SUPPORTED WITH JUDICIAL DECISIONS ON PROPORTIONATE LEVY OF COST AND THE R EASONABLE CAUSE AND PRAYED FOR WAIVER OF THE COST. CONTRA, THE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDERS OF TRIBUNAL AND FILED WRITTEN SUBMISSIONS AND PRAYED FOR DISMISSAL OF THE MISCELLANEOUS PETITION. 4. WE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. PRIMA FACIE, THE CONTENTION OF THE LD. AR THAT THE ASSESSEE HAS ACCEPTED FOR R ESTORATION OF APPEAL TO THE FILE OF LEARNED 4 M.P. NOS.66 & 67/BANG/2019 (IN ITA NOS.2332 & 2333/BANG/20 - 18) CIT(APPEALS) BUT THE LEVY OF COST OF RS.50,000 IS HIGH ER . WE FOUND FROM THE ORDER, AS PER THE INTIMATION UNDER SECTIONS 200A & 206 C B OF THE ACT DT.15.11.2016, THE ASSESSEE IS REQUIRED TO PAY INTEREST ON LATE PAYMENT OF RS.16,758 AND LATE FILING FEE UNDER SECTION 234E OF RS.36,800 AND THE TOTAL LIABILITY TO BE PAYABLE IS RS.53,560 AND AND HENCE FOR THE SAKE OF CONVENIENCE, WE CONSI DER IT PROPER TO REFER TO INTIMATION AS UNDER : 5 M.P. NOS.66 & 67/BANG/2019 (IN ITA NOS.2332 & 2333/BANG/20 - 18) 5. SIMILARLY FOR THE SECOND QUARTER, THE INTIMATION PASSED UNDER SECTION 200A & 206 C B OF THE ACT DT.15.11.2016, WHERE THE INTEREST ON LATE FEES IS RS.8,982 AND LATE FILING FEES UNDER SECTION 234E OF RS.18,400 AND THE NET PAYABLE IS RS.27,380. WE CONSIDER IT PROPER TO REFER TO THE INTIMATION AS UNDER : 6 M.P. NOS.66 & 67/BANG/2019 (IN ITA NOS.2332 & 2333/BANG/20 - 18) 6. ON CONSIDERING BOTH THE INTIMATION S DT.15.10.2016 , THE TOTAL AMOUNT PAYABLE BY THE ASSESSEE IS RS.53,560 + RS.27,380 = RS.80,940. NO W THE QUESTION ARISES THAT THE TOTAL LIABILITY OF TAX IS RS.80,940 WHEREAS THE TRIBUNAL HAS LEVIED A COST OF RS.50,000 WHICH IS MORE THAN 60 % OF THE TOTAL LIABILITY PAYABLE BY THE ASSESSEE IN THE ABOVE TWO QUARTERS. IN THIS REGARD, WE LIKE TO REFER TO TH E PROVISIONS OF SECTION 254(2) OF THE ACT, WE FOUND THAT SCOPE OF SECTION IS LIMITED TO RECTIFYING ANY MISTAKE APPARENT ON RECORD. IN THIS CASE, THE ASSESSEE HAS ACCEPTED THE ORDER OF THE TRIBUNAL ON MERITS RESTORING TO THE FILE OF LEARNED CIT(APPEALS). BUT THE ONLY PRAYER OF THE ASSESSEE IS THAT THE COST LEVIED OF RS.50,000 IS HIGH ER . WE, CONSIDERING THE FACTS, SUBMISSIONS AND JUDICIAL DECISIONS AND APPLYING THE LOGICAL CONSIDERATION FOUND THAT WHEN THE LIABILITY PAYABLE BY THE ASSESSEE FOR BOTH THE QUA RTERS OF ASSESSMENT YEAR 2014 - 15 IS RS.80,940 AND LEVYING THE COST OF RS.50,000 IS ABSURD ON FACE AND HENCE, IT IS AN APPARENT MISTAKE RECTIFIABLE UNDER SECTION 254(2) OF THE ACT. ACCORDINGLY WE RECTIFY AND RESTRICT THE COST FOR THE TWO QUARTERS TO RS.5, 000 AND DIRECT THE ASSESSEE TO PAY THIS AMOUNT TO THE ITAT BAR ASSOCIATION WITHIN 15 DAYS FROM THE 7 M.P. NOS.66 & 67/BANG/2019 (IN ITA NOS.2332 & 2333/BANG/20 - 18) DATE OF RECEIPT OF THIS ORDER AND MODIFY THE ORDER OF THE TRIBUNAL AND WE ORDER ACCORDINGLY. 7. IN THE RESULT, THE MISC. PETITIONS ARE PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 S T N O V . , 2019. S D / - S D / - (A.K. GARODIA) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 0 1 . 1 1 . 2019. * R E D D Y G P COPY TO I) THE APPELLANT II) THE RESPONDENT III) CIT (APPEALS) IV) PR. CIT V) DR, ITAT, BANGALORE VI) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE