M/s. Sun Infrastructure Pvt.Ltd,, Nashik v. Assistant Commissioner of Income-tax, Central Circle - 2, , Nashik

ITA 3015/PUN/2017 | 2007-2008
Pronouncement Date: 16-03-2021 | Result: Allowed

Appeal Details

RSA Number 301524514 RSA 2017
Assessee PAN AAHCS5734P
Bench Pune
Appeal Number ITA 3015/PUN/2017
Duration Of Justice 3 year(s) 2 month(s) 27 day(s)
Appellant M/s. Sun Infrastructure Pvt.Ltd,, Nashik
Respondent Assistant Commissioner of Income-tax, Central Circle - 2, , Nashik
Appeal Type Income Tax Appeal
Pronouncement Date 16-03-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 16-03-2021
Last Hearing Date 25-01-2021
First Hearing Date 25-01-2021
Assessment Year 2007-2008
Appeal Filed On 19-12-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A PUNE VIRTUAL COURT BEFORE SHRI R.S. SYAL VICE PRESIDENT AND SHRI S.S.VISWANETHRA RAVI JUDICIAL MEMBER . / ITA NOS.3015 TO 3017/PUN/2017 / ASSESSMENT YEARS : 2007-08 2008-09 AND 2009-10 M/S. SUN INFRASTRUCTURE PVT. LTD. F 1/2 SUYOJIT HEIGHTS SHARANPUR ROAD OPP. RAJIV GANDHI BHAVAN NASHIK 422 002 PAN : AAHCS5734P VS. ACIT CENTRAL CIRCLE-2 NASHIK APPELLANT RESPONDENT / ORDER PER R.S. SYAL VP : THESE THREE APPEALS BY THE ASSESSEE ARE DIRECTED AGAINS T THE CONFIRMATION OF PENALTY OF RS.10 000/- EACH U/S.271(1)(B) OF THE INCOME-TAX ACT 1961 (HEREINAFTER ALSO CALLED `THE ACT) BY THE LD. CIT(A) THROUGH HIS SEPARATE ORDERS ALL DATED 10-08-201 7 IN RELATION TO THE ASSESSMENT YEARS 2007-08 2008-09 AND 2009-10. SINCE THESE APPEALS INVOLVE COMMON FACTUAL SCENARIO AND SIMILAR GROUNDS WE ARE THEREFORE PROCEEDING TO DISPOSE THEM OFF BY THIS CON SOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. ASSESSEE BY NONE REVENUE BY SHRI VITTHAL BHOSALE DATE OF HEARING 16-03-2021 DATE OF PRONOUNCEMENT 16-03-2021 ITA NOS.3015 TO 3017/PUN/2017 M/S. SUN INFRASTRUCTURE PVT. LTD. 2 2. FOR REFERENCE SAKE WE ARE TAKING UP THE FACTUAL MA TRIX FROM THE APPEAL FOLDER FOR THE ASSESSMENT YEAR 2007-08. A SEARC H AND SEIZURE ACTION U/S.132 OF THE ACT WAS TAKEN IN SUYOJIT GROUP NASHIK ON 21- 03-2012. NOTICE U/S. 142(1) DT. 11-08-2015 WAS ISSUED S EEKING COMPLIANCE ON 21-08-2015. SINCE THE ASSESSEE DID NOT APP EAR THE AO IMPOSED PENALTY OF RS.10 000/- U/S.271(1)(B) OF THE ACT. THE ASSESSEE PLEADED FOR A REASONABLE CAUSE BEFORE THE LD. CIT(A) THROUGH WRITTEN SUBMISSIONS THAT HAVE BEEN REPRODUCED IN PA RA 3.1 OF HIS ORDER. NOT CONVINCED THE LD. CIT(A) ECHOED THE PENALTY WHICH HAS BROUGHT THE ASSESSEE BEFORE THE TRIBUNAL. SIMILAR FACTS OBTAIN IN RESPECT OF THE OTHER TWO YEARS AS WELL. 3. WE HAVE HEARD THE LD. DR THROUGH VIRTUAL COURT AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD. THERE IS NO APP EARANCE FROM THE SIDE OF ASSESSEE DESPITE NOTICE. AS SUCH WE A RE PROCEEDING TO DISPOSE OF THE APPEALS EX PARTE QUA THE ASSESSEE. FROM THE FACTS NARRATED IN PARA 3.1 OF THE IMPUGNED ORDER IT CAN BE SE EN THAT THE ASSESSEE MAINTAINED REGULAR BOOKS OF ACCOUNT WHICH WERE A UDITED. CONSEQUENT UPON THE SEARCH THE ASSESSMENTS FOR THE RE LEVANT SEVEN YEARS WERE COMPLETED IN MARCH 2013. THE LD. CIT INVO KING HIS POWER U/S.263 SET ASIDE THE ASSESSMENT ORDERS FOR THE YE ARS UNDER CONSIDERATION. IT WAS IN PURSUANCE OF SUCH ORDERS U/S.26 3 THAT THE ITA NOS.3015 TO 3017/PUN/2017 M/S. SUN INFRASTRUCTURE PVT. LTD. 3 AO INITIATED INSTANT ASSESSMENT PROCEEDINGS FOR WHICH NOTICE DATE D 11.08.2015 U/S.142(1) WAS ISSUED WHICH WAS SERVED UPON THE ASSESSEE ON 14-08-2015. COMPLIANCE WAS SOUGHT ON 21-0 8-2015. THERE WERE THREE HOLIDAYS BETWEEN THIS PERIOD OF SEVEN DAY S IN TOTAL NAMELY 15 TH AUGUST INTERVENING SATURDAY AND SUNDAY THEREBY LEAVING ONLY FOUR DAYS AT THE DISPOSAL OF THE ASSES SEE FOR PUTTING IN APPEARANCE AND FURNISHING THE DETAILS. THE ASSES SEE STATED BEFORE THE LD. CIT(A) THAT THE PROCEEDINGS U/S.263 WE RE REPRESENTED BY ADVOCATE DEWANI FROM NAGPUR SINCE SUCH PROCEEDINGS WERE CARRIED OUT AT NAGPUR. THEREAFTER TH E RECORD WAS CARRIED TO SHRI ABHAY GUNDECHA CHARTERED ACCOUNTANT IN PU NE FOR FILING OF APPEALS AGAINST THE ORDER PASSED U/S.263 OF THE A CT. BECAUSE OF THESE PROCEEDINGS THE RELEVANT RECORDS WERE FREQUENTLY MOVED FROM NASHIK PUNE AND NAGPUR DEPENDING UPON THE NECESSITY WHERE THESE WERE REQUIRED. IN VIEW OF THIS PEC ULIAR SITUATION WE FIND THAT IT WAS DIFFICULT ON THE PART OF THE ASSESSE E TO COLLECT DIFFERENT RECORDS FROM THE SCATTERED PLACES IN A SHOR T PERIOD OF FOUR DAYS WHICH WAS AT THE DISPOSAL OF THE ASSESSEE F OR COMPLYING WITH THE REQUIREMENTS OF THE AO. THERE IS NO DOU BT THAT THE ASSESSEE DID NOT COMPLY WITH THE NOTICE ISSUED BY THE AO A ND THUS BECAME LIABLE FOR PENALTY U/S.271(1)(B) OF THE ACT. HOWEVER ITA NOS.3015 TO 3017/PUN/2017 M/S. SUN INFRASTRUCTURE PVT. LTD. 4 SECTION 273B STATES THAT WHEREVER THERE IS A REASONABLE CAUSE IN NOT COMPLYING WITH THE REQUIREMENTS RESULTING INTO IMPOSITION OF PENALTY INCLUDING SECTION 271(1)(B) UNDER CONSIDERATION THE P ENALTY NEEDS TO BE DELETED. ADVERTING TO THE FACTS OF THE INSTANT CA SE WE FIND THAT THERE WAS A REASONABLE CAUSE WITH THE ASSESSEE IN NOT COMPLYING WITH THE REQUIREMENTS OF THE AO IN SUCH A SHORT PE RIOD FOR THE REASONS DISCUSSED HEREINABOVE. THIS BEING A REASONABLE CAUSE HAS BROUGHT THE CASE WITHIN THE AMBIT OF SECTION 273B OF THE ACT. WE THEREFORE ORDER TO DELETE THE PENALTY IMPOSED B Y THE AO AND CONFIRMED IN THE FIRST APPEAL IN RESPECT OF ALL THE THREE YEARS UNDER CONSIDERATION. 4. IN THE RESULT ALL THE APPEALS ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH MARCH 2021. SD/- SD/- ( S.S.VISWANETHRA RAVI ) (R.S.SYAL) JUDICIAL MEMBER VIC E PRESIDENT PUNE; DATED : 16 TH MARCH 2021 ITA NOS.3015 TO 3017/PUN/2017 M/S. SUN INFRASTRUCTURE PVT. LTD. 5 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. 4. THE CIT(A)-12 PUNE THE PR. CIT CENTRAL NAGPUR 5. 6. A / DR A ITAT PUNE; / GUARD FILE. / BY ORDER // TRUE COPY // SENIOR P RIVATE SECRETARY / ITAT PUNE DATE 1. DRAFT DICTATED ON 16-03-2021 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 16-03-2021 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *