Bhosale Constructions, Pune v. ITO Wd. 3(1),, Pune

ITA 1178/PUN/2009 | 1999-2000
Pronouncement Date: 31-01-2011 | Result: Allowed

Appeal Details

RSA Number 117824514 RSA 2009
Assessee PAN AAEEB6897Q
Bench Pune
Appeal Number ITA 1178/PUN/2009
Duration Of Justice 1 year(s) 4 month(s) 1 day(s)
Appellant Bhosale Constructions, Pune
Respondent ITO Wd. 3(1),, Pune
Appeal Type Income Tax Appeal
Pronouncement Date 31-01-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 31-01-2011
Date Of Final Hearing 25-01-2011
Next Hearing Date 25-01-2011
Assessment Year 1999-2000
Appeal Filed On 29-09-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV JUDICIAL MEMBER AND SHRI G.S. PANNU ACCOUNTANT MEMBER ITA NO. 1178/PN/09 (ASSTT YEAR: 1999-2000) BHOSALE CONSTRUCTION APPELLANT 1 BHOSALE HOUSE 13/2 KARVE ROAD PUNE PAN AAEEB6897Q VS. INCOME-TAX OFFICER WARD 3(1) PUNE RESPONDENT APPELLANT BY : SHRI K SRINIVASAN RESPONDENT BY : SHRI ABHAY DAMLE ORDER PER SHAILENDRA KUMAR YADAV JM THIS APPEAL BY ASSESSEE IS PREFERRED AGAINST THE O RDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-II PUNE DATED 14.9.2009 WHICH IN TURN HAS ARISEN FROM AN ORDER DATED 28.6.2007 PASS ED BY THE ASSESSING OFFICER UNDER SEC. 271D OF THE INCOME-TAX ACT 1961 (IN SHORT THE ACT) PERTAINING TO THE ASSESSMENT YEAR 1999-2000. 2. THE RELEVANT FACT LEADING TO THE LEVY OF PENALTY UNDER SECTION 271-D OF THE ACT BY THE ASSESSING OFFICER ARE THAT THE AS SESSING OFFICER HAD NOTICED THAT THE ASSESSEE HAD ACCEPTED LOAN THROUGH BEARER CHEQUES AMOUNTING TO RS 2 50 000/- THEREBY VIOLATING THE PR OVISIONS OF SEC. 269SS OF THE ACT. THE ASSESSING OFFICER AFTER REJECTING THE CONTENTIONS RAISED ITA NO 1178/PN/09 M/S BHOSALE CONSTRUCTION PUNE 2 ON BEHALF OF THE ASSESSEE LEVIED PENALTY UNDER SEC TION 271D OF THE ACT AT RS 2 50 000/- WHICH WAS CONFIRMED BY THE COMMIS SIONER OF INCOME- TAX (APPEALS). 3. BEING AGGRIEVED BY THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. BEFORE US ON BEHALF OF THE ASSESSEE THE LEARNED A.R STATED THAT THE ASSESSEE HAD TO BORROW AN AMOUNT OF RS 2 50 000/- BY BEARER CHEQUES DURING THE YEAR UNDER CONSIDERATION TO MEET THE URGENT FINANCIAL NE EDS. THOUGH THE AMOUNT WAS BORROWED THROUGH BEARER CHEQUES THE ASS ESSEE HAD DEPOSITED THESE CHEQUES INTO BANK. MOREOVER THE AS SESSEE HAD REPAID THE BORROWED AMOUNT BY ACCOUNT PAYEE CHEQUES. THE A SSESSEE ALSO PAID INTEREST ON THE BORROWED AMOUNT BY ACCOUNT PAYEE CH EQUES. THEREFORE IT WAS CONTENDED THAT THE PENALTY SHOULD BE DELETED. O N THE OTHER HAND THE LEARNED D.R SUPPORTED THE ORDERS OF THE AUTHORI TIES BELOW AND SUBMITTED THAT IGNORANCE OF LAW IS NOT AN EXCUSE. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS CAREFULL Y WE FIND THAT THE ASSESSEE HAD TO BORROW AN AMOUNT OF RS 2 50 000/- B Y BEARER CHEQUES TO MEET URGENT FINANCIAL NEEDS. THE SAME WAS REPAID AL ONGWITH DUE INTEREST TO THE BORROWERS BY ACCOUNT PAYEE CHEQUES WHICH IS NOT DISPUTED BY THE REVENUE. TAKING ALL FACTS AND CIRCUMSTANCES OF THE CASE INTO CONSIDERATION AND THE BUSINESS OF THE ASSESSEE AS W ELL I.E. CIVIL CONSTRUCTION WE FIND THAT THERE WAS REASONABLE CAU SE FOR THE ASSESSEE TO BORROW THE AMOUNT OF RS 2 50 000/- BY BEARER CHEQUE S AS STATED ABOVE. MOREOVER THE SAME AMOUNT HAS ALREADY BEEN REFUNDED WITH INTEREST THEREON BY ACCOUNT PAYEE CHEQUES WHICH IS NOT DISP UTED BEFORE US. SO WE ARE OF THE VIEW THAT THE ASSESSEE HAD TO DO THE ABOVESAID TRANSACTION ITA NO 1178/PN/09 M/S BHOSALE CONSTRUCTION PUNE 3 IN ORDER TO MEET ITS URGENT BUSINESS NEEDS AND THE REFORE THE PENALTY IS DIRECTED TO BE DELETED. 5. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED . PRONOUNCED IN THE OPEN COURT ON THIS 31ST DAY OF J ANUARY 2011. SD/- SD /- (G.S. PANNU) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE DATED: 31ST JANUARY 2011 COPY TO:- 1) M/S BHOSALE CONSTRUCTIONS PUNE 2) THE ITO WD 3(1) PUNE 3) THE CIT (A) II PUNE 4) THE CIT-II PUNE 5) THE D R A BENCH ITAT PUNE. BY ORDER TRUE COPY ASSTT.REGISTRAR I.T.A.T. PUNE B