Smt. Mangala N. Chaudhary,, Jalgaon v. Income-tax Officer,,

ITA 1471/PUN/2016 | 2012-2013
Pronouncement Date: 07-10-2016 | Result: Allowed

Appeal Details

RSA Number 147124514 RSA 2016
Assessee PAN AADCC7960R
Bench Pune
Appeal Number ITA 1471/PUN/2016
Duration Of Justice 3 month(s) 2 day(s)
Appellant Smt. Mangala N. Chaudhary,, Jalgaon
Respondent Income-tax Officer,,
Appeal Type Income Tax Appeal
Pronouncement Date 07-10-2016
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 07-10-2016
Assessment Year 2012-2013
Appeal Filed On 05-07-2016
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A PUNE . . ' # BEFORE SHRI R.K. PANDA AM AND SHRI VIKAS AWASTHY JM SL. NO. ITA NO. NAME OF APPELLANT NAME OF RESPONDENT ASST. YEAR 1-2 1442 &1443/PN/2016 M/S. CHAUDHARI CARS PVT. LTD . 11 SWED BINDU SHANTI NAGAR YAWAL ROAD BHUSAWAL JALGAON 425 201 PAN : AADCC7960R ITO CENTRAI-I NASHIK 2011-12 & 2012-13 3-9 1451 TO 1457/PN/2016 SMT. BHUMIKA YASHODHAN CHAUDHARI 11 SWED BINDU SHANTI NAGAR YAWAL ROAD BHUSAWAL JALGAON 425 201 PAN :AMXPC4699N ITO CENTRAI-I NASHIK 2006-07 TO 2012-13 10-16 1465 TO 1471/PN/2016 SMT. MANGALA N. CHAUDHAR I 11 SWED BINDU SHANTI NAGAR YAWAL ROAD BHUSAWAL JALGAON 425 201 PAN : ADXPC7229B ITO CENTRAI-I NASHIK 2006-07 TO 2012-13 17-23 1604 TO 1610/PN/2016 VIJAYA PRAKASH CHAUDHARI 11 SWED BINDU SHANTI NAGAR YAWAL ROAD BHUSAWAL JALGAON 425 201 PAN : ADTPC8690E ITO CENTRAI-I NASHIK 2006-07 TO 2012-13 24-30 1695 TO 1701/PN/2016 M/S. B.N. CHAUDHARI & SN EUS HYDEL 11 SWED BINDU SHANTI NAGAR YAWAL ROAD BHUSAWAL JALGAON 425 201 PAN : AADFB4483B ITO CENTRAI-I NASHIK 2006-07 TO 2012-13 / APPELLANTS BY : SHRI NIKHIL PATHAK / RESPONDENT BY : SHRI SUHAS S. KULKARNI / ORDER PER VIKAS AWASTHY JM: THESE BUNCH OF APPEALS FILED BY VARIOUS ASSESSEES O F THE SAME GROUP ARE DIRECTED AGAINST THE ORDER OF CIT(A) IN CONFIRM ING THE LEVY OF PENALTY U/S.271(1)(B) OF THE INCOME TAX ACT 1961 HEREIN R EFERRED TO AS THE ACT. SINCE THE ISSUE INVOLVED IN ALL THESE APPEALS ARE ARISING FROM SAME SET OF FACTS THESE / DATE OF HEARING :05-10-2016 / DATE OF PRONOUNCEMENT:07.10.2016 2 APPEALS ARE TAKEN UP TOGETHER FOR ADJUDICATION. TH E ASSESSMENT YEARS UNDER APPEAL ARE A.Y. 2006-07 TO 2012-13. 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM TH E RECORDS ARE : ALL THE ASSESSEES/APPELLANTS BELONG TO CHAUDHARI GROUP. A SEARCH AND SEIZURE ACTION U/S.132 WAS CARRIED OUT IN THE CASE OF CHAUDHARI GR OUP ON 14-10-2011. THE AO ISSUED NOTICES U/S.153A AND 142(1) OF THE ACT. HOWE VER ASSESSEES AFTER FILING INITIAL REPLY DID NOT ATTEND THE ASSESSMENT PROCEED INGS. THE AO LEVIED PENALTY OF RS.10 000/- U/S.271(1)(B) FOR EACH ASSESSMENT YE AR FOR DEFYING/IGNORING THE NOTICES ISSUED U/S.142(1) OF THE ACT. 3. AGGRIEVED BY THE ORDER LEVYING PENALTY THE ASSE SSEES IN THEIR RESPECTIVE CASES FOR THE RELEVANT ASSESSMENT YEARS FILED SEPAR ATE APPEALS BEFORE THE CIT(A). THE CIT(A) VIDE IMPUGNED ORDERS IN THE CAS E OF RESPECTIVE ASSESSEES UPHELD THE LEVY OF PENALTY U/S.271(1)(B) OF THE ACT . NOW THE ASSESSEES ARE IN APPEAL AGAINST THE ORDERS OF CIT(A) CONFIRMING THE LEVY OF PENALTY. 4. SHRI NIKHIL PATHAK APPEARING ON BEHALF OF THE AS SESSEES SUBMITTED THAT THE ONLY ISSUE IN THE PRESENT BUNCH OF APPEALS IS C ONFIRMING OF LEVY OF PENALTY OF RS.10 000/- LEVIED U/S.271(1)(B) OF THE ACT FOR EAC H ASSESSMENT YEAR IN THE CASE OF RESPECTIVE ASSESSEES. THE ASSESSEES IN COMPLIAN CE WITH THE NOTICE ISSUED U/S.153A BY THE AO APPEARED AND FURNISHED THE REQUI SITE DETAILS. SINCE NO FURTHER INFORMATION WAS TO BE SUBMITTED BY THE ASSE SSEES IN THEIR RESPECTIVE CASES NEITHER THE ASSESSEES NOR THE AUTHORISED RE PRESENTATIVES OF THE ASSESSEES APPEARED BEFORE THE AO IN RESPONSE TO SUB SEQUENT NOTICES ISSUED U/S.142(1) OF THE ACT. THE LD. AUTHORISED REPRESEN TATIVE FURTHER CONTENDED THAT THE ASSESSMENT PROCEEDINGS FOR ALL THE IMPUGNED ASS ESSMENT YEARS STARTING FROM A.Y. 2006-07 TO A.Y. 2012-13 WERE SIMULTANEOUS LY CARRIED OUT THE AO ERRED IN LEVYING PENALTY U/S.271(1)(B) IN CASE OF ALL THE ASSESSMENT YEARS. THE 3 LD. AUTHORISED REPRESENTATIVE FURTHER SUBMITTED THA T THE COORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF ONE OF GROUP ASSESSEES HAS UPHELD THE PENALTY IN FIRST ASSESSMENT YEAR I.E. IN A.Y.2006-07 AND DELE TED THE PENALTY IN REMAINING ASSESSMENT YEARS. THE LD. AUTHORISED REPRESENTATIV E PLACED ON RECORD A COPY OF THE ORDER OF TRIBUNAL IN THE CASE OF SHR YASHODH AN NAMDEO CHAUDHARI IN ITA NOS. 86 TO 92/PN/2015 FOR A.YRS. 2006-07 TO 2012-13 DECIDED ON 08-07-2016. THE LD. AUTHORISED REPRESENTATIVE SUBMITTED THAT TH E CASE OF THE ASSESSEES/APPELLANTS IN THE PRESENT SET OF APPEALS IS ON IDENTICAL FOOTING AND ARE ARISING FROM SAME SET OF FACTS. 5. SHRI SUHAS S. KULKARNI REPRESENTING THE DEPARTME NT VEHEMENTLY SUPPORTED THE FINDINGS OF THE CIT(A) IN CONFIRMING THE LEVY OF PENALTY U/S.271(1)(B) OF THE ACT. THE LD. DEPARTMENTAL REP RESENTATIVE SUBMITTED THAT THE ASSESSEES DID NOT APPEAR BEFORE THE AO DESPITE ISSUANCE AND SERVICE OF SEVERAL NOTICES U/S.142(1) OF THE ACT. THE ASSESSE ES WERE NOT COOPERATIVE DURING ASSESSMENT PROCEEDINGS RATHER THE ASSESSEES ARE RECALCITRANT THEREFORE THE AO WAS CONSTRAINED TO LEVY PENALTY U/S.271(1)(B ). THE LD. DEPARTMENTAL REPRESENTATIVE HOWEVER FAIRLY ADMITTED THAT IN THE CASE OF ONE OF THE GROUP ASSESSEES THE TRIBUNAL HAS CONFIRMED THE LEVY OF P ENALTY ONLY IN THE FIRST ASSESSMENT YEAR AND HAS DELETED THE PENALTY IN THE SUBSEQUENT ASSESSMENT YEARS. 6. WE HAVE HEARD THE SUBMISSIONS MADE BY THE REPRES ENTATIVES OF RIVAL SIDES AND HAVE PERUSED THE ORDER OF AUTHORITIES BEL OW. WE HAVE ALSO CONSIDERED THE DECISION OF THE COORDINATE BENCH ON WHICH RELIANCE HAS BEEN PLACED BY THE LD. AUTHORISED REPRESENTATIVE OF THE ASSESSEE. IT IS AN UNDISPUTED FACT THAT THE ASSESSES AFTER INITIAL APP EARANCE BEFORE THE AO HAVE NOT RESPONDED TO THE REPEATED NOTICES ISSUED BY THE AO U/S.142(1) OF THE ACT. THE ASSESSEES WERE DEFINAT IN COMPLYING WITH THE PR OVISIONS OF THE ACT. 4 WE OBSERVE THAT THE COORDINATE BENCH OF THE TRIBUN AL IN THE APPEALS FILED BY SHRI YASHODHAN NAMDEO CHAUDHARI (ONE OF THE MEMB ER OF CHAUDHARI GROUP) FOR A.YRS. 2006-07 T0 2012-13 HAS DEALT WIT H THE IDENTICAL ISSUE. THE FACTS OF THE CASE AND FINDINGS OF THE TRIBUNAL IN T HE AFORESAID APPEALS ARE AS UNDER : 4. BRIEFLY IN THE FACTS OF THE CASE SEARCH AND SEI ZURE OPERATION WAS CARRIED OUT UNDER SECTION 132 OF THE ACT. THEREAFTE R NOTICE UNDER SECTION 153A WAS ISSUED TO THE ASSESSEE ON 06.07.2012. FURTHER A NOTICE UNDER SECTION 142(1) WAS ISSUED ON 09.05.2013 CALLING FOR TH E RETURN OF INCOME. ANOTHER NOTICE UNDER SECTION 142(1) DATED 19.09.2013 ALONG WITH QUESTIONNAIRE CALLING FOR CERTAIN INFORMATION ON THE BASIS OF DOCUMENTS FOUND AND SEIZED DURING THE COURSE OF SEARCH WAS ISSUED T O THE ASSESSEE. THERE WAS NO COMPLIANCE TO THE SAME AND FURTHER NOTIC E UNDER SECTION 142(1) WAS ISSUED ON 13.12.2013. IN RESPONSE TO THE SAM E ALSO NOBODY ATTENDED NOR FILED ANY WRITTEN SUBMISSIONS. SINCE THE ASSESSEE HAD FAILED TO COMPLY WITH THE ABOVE-SAID NOTICE ISSUED ON 13.12.2013 PENALTY PROCEEDINGS UNDER SECTION 271(1)(B) OF THE ACT WERE I NITIATED. THE ASSESSEE WAS ASKED TO FURNISH THE SUBMISSIONS ON 13.01.2014. THE A SSESSEE FAILED TO EVEN RESPONSE TO SHOW-CAUSE NOTICE. SINCE THE ASSESSEE HAD FAILED TO APPEAR IN RESPONSE TO SEVERAL NOTICES ISSUED UNDER SECTION 142(1 ) OF THE ACT THE ASSESSING OFFICER VIDE PARA 4 OBSERVES THAT PENALTY PROC EEDINGS UNDER SECTION 271(1)(B) OF THE ACT WERE INITIATED. IN VIE W THEREOF THE ASSESSING OFFICER WAS SATISFIED THAT THE ASSESSEE HAS WITHOUT REASONAB LE CAUSE FAILED TO COMPLY WITH NOTICE UNDER SECTION 271(1)(B) OF THE AC T AND WAS HELD TO LIABLE FOR PENALTY OF RS.10 000/-. 5. SIMILAR PENALTY WAS LEVIED IN RESPECT OF THE IDENT ICAL DEFAULTS IN ALL THE OTHER YEARS I.E. ASSESSMENT YEARS 2007-08 TO 2012-13. 6. THE SAID PENALTY LEVIED BY THE ASSESSING OFFICER WAS C ONFIRMED BY THE CIT(A) AGAINST WHICH THE ASSESSEE IS IN APPEAL. 7. THE LD. AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE P OINTED OUT THAT THE COMPLETE INFORMATION AS SOUGHT BY THE ASSESSING OFFIC ER WAS FILED ON 24.01.2014 AND THEREAFTER THE ASSESSMENT WAS COMPLETED I N THE HANDS OF THE ASSESSEE. HE FURTHER STRESSED THAT ON SIMILAR CIRCUMSTA NCES AND SIMILAR DEFAULTS NO PENALTY UNDER SECTION 271(1)(B) OF THE AC T WAS INITIATED IN THE CASE OF SMT. ASHA BHAGWAT CHAUDHARI WHEREIN THE ASSESSMEN T WAS ALSO COMPLETED UNDER SECTION 143(3) R.W.S. 153A OF THE ACT . 8. THE LD. DEPARTMENTAL REPRESENTATIVE FOR THE REVEN UE PLACED RELIANCE ON THE CONSOLIDATED ORDERS OF THE CIT(A). 9. ON THE PERUSAL OF RECORD AND THE ORDERS OF THE AUT HORITIES BELOW WE FIND THE FACTUAL ASPECTS OF THE CASE ARE THAT AFTER SE ARCH AND SEIZURE OPERATION CONDUCTED ON THE CHAUDHARI GROUP OF CASES THE RESIDENTIAL PREMISES OF THE ASSESSEE WERE SIMULTANEOUSLY SEARCHED. THE REAFTER NOTICE UNDER SECTION 153A WAS ISSUED TO THE ASSESSEE AND THE ASSESSEE IN RETURN 5 SUBMITTED THAT THE ORIGINAL RETURN OF INCOME FILED U NDER SECTION 139 BE TREATED AS FILED IN RESPONSE TO THE SAID NOTICE. THERE AFTER NOTICE UNDER SECTION 142(1) WAS ISSUED ON 09.05.2013 19.09.2013 AN D ANOTHER NOTICE WAS ISSUED ON 13.12.2013. SINCE THE ASSESSEE FAILED TO CO MPLY WITH THE SAID NOTICE SHOW-CAUSE WAS ISSUED TO THE ASSESSEE AS TO WHY PENA LTY UNDER SECTION 271(1)(B) OF THE ACT SHOULD NOT BE LEVIED. U NDER THE PROVISIONS OF THE SAID SECTION WHERE A PERSON HAS DEFAULTED TO COMPLY WITH THE NOTICE ISSUED UNDER SECTION 142(1) AND/OR FAILED TO FURNISH T HE INFORMATION/DOCUMENTS SOUGHT FOR THEN THE ASSESSING OFFI CER MAY DIRECT THAT SUCH A PERSON TO PAY BY WAY OF PENALTY A SUM OF RS.10 000/- EACH FOR SUCH FAILURE. THE SAID PENALTY IS PAYABLE IN ADDITION TO TAX IF ANY PAYABLE BY THE SAID PERSON. IN THE FACTS OF THE PRESENT CASE THE ASSESSEE INITIALLY HAD DEFAULTED AND HAD NOT COMPLIED WITH THE NOTICES UNDE R SECTION 142(1) OF THE ACT. HOWEVER NO DOUBT COMPLETE INFORMATION WAS FIL ED BY THE ASSESSEE BUT THE SAME DOES NOT ABSOLVE THE ASSESSEE IN DEFAULT BY NOT C OMPLYING WITH THE NOTICE ISSUED UNDER SECTION 142(1) OF THE ACT. THE ASSE SSING OFFICER HAS BEEN LENIENT IN IMPOSING PENALTY TO THE EXTENT OF RS. 10 000/- WHICH IS EQUIVALENT TO ONE SUCH DEFAULT AS AGAINST THE DEFAULT OF ASSESSEE IN NON- COMPLIANCE OF VARIOUS DATES. ACCORDINGLY WE UPHOLD THE LEVY OF PENALTY OF RS.10 000/- UNDER SECTION 271(1)(B) OF THE ACT IN ASSESSM ENT YEAR 2006-07. 10. FURTHER THE ASSESSING OFFICER HAS LEVIED PENALTY OF RS.10 000/- UNDER SECTION 271(1)(B) EACH FOR THE SAME DEFAULT IN ASSESSMENT YEARS 2007-08 TO 2012-13. WHERE THE ASSESSEE HAS BEEN HELD LIABLE TO PAY THE PENALTY IN ASSESSMENT YEAR 2006-07 FOR A DEFAULT WHICH IS RE-RECURR ING IN THE OTHER YEARS I.E. ON SAME DATES WE FIND NO MERIT IN THE SAID LEVY OF PENALTY OF RS.10 000/- UNDER SECTION 271(1)(B) OF THE ACT IN EAC H OF THE YEARS I.E. ASSESSMENT YEARS 2007-08 TO 2012-13. WE DIRECT THE ASSESSIN G OFFICER TO DELETE THE SAME. IN THE ENTIRETY OF THE FACTS AND C IRCUMSTANCES WE UPHOLD THE PENALTY OF RS.10 000/- IN ASSESSMENT YEAR 2006-07 AN D THE PENALTY LEVIED IN THE BALANCE YEARS I.E. ASSESSMENT YEARS 2007-0 8 TO 2012-13 ARE DELETED. 11. IN THE RESULT THE APPEAL IN ASSESSMENT YEAR 2006-07 IS DISMISSED AND THE APPEALS IN OTHER YEARS I.E. ASSESSMENT YEARS 2007-08 T O 2012-13 ARE ALLOWED. 7. UNDISPUTEDLY THE FACTS IN THE PRESENT SET OF AP PEALS ARE IDENTICAL TO THE FACTS OF THE CASE ALREADY ADJUDICATED BY THE COORDI NATE BENCH OF THE TRIBUNAL. THEREFORE RESPECTFULLY FOLLOWING THE DECISION OF C OORDINATE BENCH WE UPHOLD THE LEVY OF PENALTY OF RS.10 000/- IN THE INITIAL A SSESSMENT YEAR I.E. A.Y. 2006- 07 AND DELETE THE PENALTY LEVIED IN A.YRS. 2007-08 TO 2012-13 FOR THE SIMILAR REASONS. 6 8. HOWEVER IN RESPECT OF APPEALS BY THE APPELLANT AT SL.NOS. 1 & 2 M/S. CHADHARI CARS PVT. LTD. IN ITA NOS. 1442 AND 1443/P N/2016 WE FIND THAT ONLY TWO ASSESSMENT YEARS ARE IN APPEAL I.E. A.YRS. 201 1-12 AND 2012-13. FOR THE AFORESAID REASON WE UPHOLD THE LEVY OF PENALTY U/S .271(1)(B) IN A.Y. 2011-12 BEING THE FIRST ASSESSMENT YEAR OF DEFAULT AND DELE TE THE PENALTY IN A.Y. 2012- 13. 9. IN THE RESULT ITA NOS. 1442 1451 1465 1604 A ND 1695/PN/2016 ARE DISMISSED AND ITA NOS. 1443 1452 TO 1457 1466 TO 1471 1605 TO 1610 AND 1696 TO 1701/PN/2016 ARE ALLOWED. ORDER PRONOUNCED ON FRIDAY THE 07 TH DAY OF OCTOBER 2016. SD/- SD/- (R.K. PANDA) (VIKAS AWASTHY) / ACCOUNTANT MEMBER ' / JUDICIAL MEMBER / PUNE ; DATED : 07 TH OCTOBER 2016 . SATISH % &'( ) / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. CIT(A) - 12 PUNE / CONCERNED CIT(A) 4. 5. 6. CIT-12 PUNE / CONCERNED CIT ! $$% % / DR ITAT A PUNE; + / GUARD FILE. / BY ORDER //TRUE COPY// -. $ % / SR. PRIVATE SECRETARY % / ITAT PUNE