Raj Carrying Cargo Pvt.Ltd.,, Ahmedabad v. The Income tax Officer,Ward-5(3),, Ahmedabad

ITA 1540/AHD/2010 | 2005-2006
Pronouncement Date: 06-08-2010 | Result: Allowed

Appeal Details

RSA Number 154020514 RSA 2010
Assessee PAN AACCR6830N
Bench Ahmedabad
Appeal Number ITA 1540/AHD/2010
Duration Of Justice 2 month(s) 26 day(s)
Appellant Raj Carrying Cargo Pvt.Ltd.,, Ahmedabad
Respondent The Income tax Officer,Ward-5(3),, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 06-08-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted D
Tribunal Order Date 06-08-2010
Assessment Year 2005-2006
Appeal Filed On 11-05-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D AHMEDABAD BEFORE SHRI N.S.SAINI ACCOUNTANT MEMBER AND SHRI MAHAVIR SINGH JUDICIAL MEMBER ITA NO.1540/AHD/2010 ASSESSMENT YEAR:2005-06 DATE OF HEARING:30.7.10 DRAFTED:2.8.10 RAJ CARRYING CARGO PVT. LTD. 930 4-5 SAHAJANAND ESTATE O/S. RAIPAUR GATE NR. OLD LATI BAZAR AHMEDABAD PAN NO.AACCR6830N V/S . INCOME TAX OFFICER WARD-5(3) AHMEDABAD (APPELLANT) .. (RESPONDENT) APPELLANT BY :- NONE RESPONDENT BY:- SHRI SUDHANSHU S JHA DR O R D E R PER MAHAVIR SINGH JUDICIAL MEMBER:- THIS APPEAL BY THE ASSESSEE IS ARISING OUT OF THE ORDER OF COMMISSIONER OF INCOME-TAX (APPEALS)-XXI AHMEDABAD IN APPEAL NO.CI T(A)-XXI/210/ WD.5(3)/09-10 DATED 06-04-2010. THE ASSESSMENT WAS FRAMED BY ITO WARD-5(3) AHMEDABAD U/S.143(3) OF THE INCOME-TAX ACT 1961 (HEREINAFTER REFERRED TO AS THE ACT) VIDE HIS ORDER DATED 30-03-2007 FOR THE ASSESSMENT YEAR 2005 -06. THE PENALTY UNDER DISPUTED WAS LEVIED BY ITO WARD-5(3) AHMEDABAD U/S .271(1)(C) OF THE ACT VIDE HIS ORDER DATED 02-03-2009. 2. THE ONLY ISSUE IN THIS APPEAL OF THE ASSESSEE IS AGAINST THE ORDER OF CIT(A) CONFIRMING THE LEVY OF PENALTY MADE BY THE ASSESSIN G OFFICER U/S.271(1(C) OF THE ACT. 3. THE BRIEF FACTS LEADING TO THE ABOVE ISSUE ARE T HAT THE ASSESSEE FILED ITS RETURN OF INCOME ON 31-10-2005 AND ASSESSMENT WAS COMPLETE D U/S.143(3) OF THE ACT AT A ITA NO.1540/AHD/2010 A.Y. 2005-06 RAJ CARRYING CARGO PVT. LTD. V. ITO WD-5(3) ABD PAGE 2 TOTAL INCOME OF RS.22 19 760/-. THE CIT(A) DELETED VARIOUS ADDITIONS VIDE HIS APPELLATE ORDER DATED 24-05-2007. HOWEVER THE CIT(A ) CONFIRMED THE ADDITION MADE ON ACCOUNT OF DISALLOWANCE U/S.40(A)(IA) ON ACCOUNT OF LATE PAYMENT OF TDS IN RESPECT OF TRUCK HIRE CHARGES OF RS.63 300/-. THE A SSESSING OFFICER LEVIED THE PENALTY ON THIS DISALLOWANCE OF TRUCK HIRE CHARGES OF RS.63 300/- AS THE DISALLOWANCE IS MADE ON THE BASIS THAT THE ASSESSEE HAS DEDUCTED TD S BUT PAID BELATEDLY. AGGRIEVED ASSESSEE PREFERRED APPEAL BEFORE CIT(A). THE CIT(A) CONFIRMED THE PENALTY WITHOUT ANY BASIS AND WITHOUT PASSING A SPE AKING ORDER. 4. AFTER HEARING LD.DR WE FIND THAT PENALTY LEVIED ONLY ON DISALLOWANCE OF TRACK HIRE CHARGES AT RS.63 300/- AND THAT ALSO ONLY ON T HE BASIS THAT TDS PAYMENT ON THIS EXPENDITURE IS MADE BELATEDLY AND ACCORDINGLY DISA LLOWANCE WAS MADE U/S 40(A)(IA) OF THE ACT. WE FIND THAT THE MERE DISALLOWANCE OF E XPENDITURE ON ACCOUNT OF BELATEDLY PAYMENT OF TDS WILL NOT ATTRACT THE PENALTY U/S.271 (1)(C) OF THE ACT AND THIS ISSUE IS SQUARELY COVERED IN FAVOUR OF ASSESSEE AND AGAINST THE REVENUE BY THE DECISION OF HONBLE APEX COURT IN THE CASE OF CIT V. RELIANCE PETROPRODUCTS PVT. LTD. (2010) 322 ITR 174 (SC) WHEREIN THE HONBLE APEX COURT HAS HE LD :- WE ARE NOT CONCERNED IN THE PRESENT CASE WITH THE MENS REA. HOWEVER WE HAVE TO ONLY SEE AS TO WHETHER IN THIS CASE AS A M ATTER OF FACT THE ASSESSEE HAS GIVEN INACCURATE PARTICULARS. IN WEBSTERS DICTIONARY THE WORD INACCURATE HAS BEEN DEFINED AS: NOT ACCURATE NOT EXACT OR CORRECT ; NOT ACCORDING TO TRUTH ERRONEOUS AS AN INACCURATE STATEMENT COPY OR TRANSCRIPT. WE HAVE ALREADY SEEN THE MEANING OF THE WORD PARTI CULARS IN THE EARLIER PART OF THIS JUDGMENT. READING THE WORDS IN CONJUNCTION THEY MU ST MEAN THE DETAILS SUPPLIED IN THE RETURN WHICH ARE NOT ACCURATE NOT EXACT OR CO RRECT NOT ACCORDING TO TRUTH OR ERRONEOUS. WE MUST HASTEN TO ADD HERE THAT IN THIS CASE THERE IS NO FINDING THAT ANY DETAILS SUPPLIED BY THE ASSESSEE IN ITS RETURN WERE FOUND TO BE INCORRECT OR ERRONEOUS OR FALSE. SUCH NOT BEING THE CASE THERE WOULD BE N O QUESTION OF INVITING THE PENALTY UNDER SECTION 271(1)(C) OF THE ACT. A MERE MAKING O F THE CLAIM WHICH IS NOT SUSTAINABLE IN LAW BY ITSELF WILL NOT AMOUNT TO F URNISHING INACCURATE PARTICULARS REGARDING THE INCOME OF THE ASSESSEE. SUCH CLAIM MA DE IN THE RETURN CANNOT AMOUNT TO THE INACCURATE PARTICULARS. SINCE LEVY OF PENALTY IS ON MERE DISALLOWANCE AND T HERE IS NO CASE MADE OUT THAT THE ASSESSEE HAS FURNISHED INACCURATE PARTICULARS OF IN COME AND IN THE ABSENCE OF THE SAME AND RESPECTFULLY FOLLOWING IN THE CASE OF RELIANCE PETROPRODUCTS PVT. LTD. ITA NO.1540/AHD/2010 A.Y. 2005-06 RAJ CARRYING CARGO PVT. LTD. V. ITO WD-5(3) ABD PAGE 3 (SUPRA) WE DELETE THE PENALTY LEVIED BY THE LOWER AUTHORITIES U/S.271(1)(C) OF THE ACT. THIS ISSUE OF THE ASSESSEES APPEAL IS ALLOWED. 5. IN THE RESULT ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 06/08/2010 SD/- SD/- (N.S.SAINI) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD DATED : 06/08/2010 *DKP COPY OF THE ORDER FORWARDED TO : 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT(APPEALS)-XXI AHMEDABAD 4. THE CIT CONCERNS. 5. THE DR ITAT AHMEDABAD 6. GUARD FILE. BY ORDER /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT AHMEDABAD