K.N.Anuradha, Visakhapatnam v. The ITO, Ward 3(2), Visakhapatnam

ITA 305/VIZ/2010 | 2006-2007
Pronouncement Date: 07-12-2010 | Result: Allowed

Appeal Details

RSA Number 30525314 RSA 2010
Bench Visakhapatnam
Appeal Number ITA 305/VIZ/2010
Duration Of Justice 6 month(s) 13 day(s)
Appellant K.N.Anuradha, Visakhapatnam
Respondent The ITO, Ward 3(2), Visakhapatnam
Appeal Type Income Tax Appeal
Pronouncement Date 07-12-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 07-12-2010
Date Of Final Hearing 02-12-2010
Next Hearing Date 02-12-2010
Assessment Year 2006-2007
Appeal Filed On 24-05-2010
Judgment Text
ITA NOS.304 & 305 OF 2010 OF SMT KN ANURADHA VISAKH APATNAM PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI BR BASKARAN ACCOUNTANT MEMBER ITA NOS.304 & 305/VIZAG/2010 ASSESSMENT YEAR: 2006-07 SMT. K.N. ANURADHA VISAKHAPATNAM VS. ITO WARD-3(2) VISAKHAPATNAM (APPELLANT) PAN NO: ADTPN 05606C (RESPONDENT) APPELLANT BY: SHRI G.V.N. HARI CA RESPONDENT BY: SHRI R.K. SINGH DR ORDER PER SHRI B. R. BASKARAN ACCOUNTANT MEMBER: THE APPEAL HAS FILED THESE TWO AGAINST THE ORDERS OF LEARNED CIT(A) VISAKHAPATNAM AND THEY RELATE TO THE ASSESSMENT YEA R 2006-07. SINCE BOTH THE APPEALS WERE HEARD TOGETHER THEY ARE DISP OSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. IN THE APPEAL NUMBERED AS ITA NO.304/VIZAG/2010 THE ASSESSEE IS CHALLENGING THE DECISION OF THE LEARNED CIT (A) IN CONFIRMING THE PENALTY OF RS.10 000/- UNDER SECTION 271(1)(B) OF THE INCOME T AX ACT. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE HUSBAND OF THE ASSESSEE WAS BED RIDDEN DURING THE PERIOD WHEN THE ASSESSMENT WA S TAKEN UP BY THE ASSESSING OFFICER. HE FURTHER SUBMITTED THAT THE A SSESSING OFFICER HAD LEVIED A SIMILAR PENALTY IN THE HANDS OF THE HUSBAN D OF THE ASSESSEE NAMED SHRI K. JAGANNADHA RAO AND THE LEARNED CIT (A) ON VERIFICATION OF THE MEDICAL CERTIFICATE SUBMITTED BEFORE HER HAD DELET ED THE SAID PENALTY. HE SUBMITTED THAT THE ASSESSEE HEREIN WAS ALSO PREOCCU PIED DURING THAT PERIOD ITA NOS.304 & 305 OF 2010 OF SMT KN ANURADHA VISAKH APATNAM PAGE 2 OF 4 IN ATTENDING HER HUSBAND AND HENCE THERE IS A VALID CAUSE FOR NON APPEARANCE BEFORE THE ASSESSING OFFICER AND ACCORDI NGLY PLEADED THAT THE PENALTY BE DELETED. 3. WE HEARD THE LEARNED DEPARTMENTAL REPRESENTATIVE ALSO IN THIS REGARD. THE LEARNED AUTHORISED REPRESENTATIVE HAS F ILED A COPY OF ORDER DATED 6-4-2010 PASSED BY LEARNED CIT (A) VISAKHAPAT NAM IN ITA NO.300/ITO/W-3(2)/VSP/08-09 IN THE HANDS OF THE HUS BAND OF THE ASSESSEE SHRI K. JAGANNADHA RAO. WE NOTICE FROM THE SAID ORD ER THAT A MEDICAL CERTIFICATE WAS FILED BEFORE THE LEARNED CIT(A) TO SUBSTANTIATE THE CLAIM THAT SHRI K. JAGANNADHA RAO WAS BED RIDDEN DURING THE PE RIOD WHEN THE ASSESSMENT PROCEEDINGS WERE TAKEN UP. ACCORDINGLY T HE LEARNED CIT (A) HAS DELETED THE PENALTY LEVIED UNDER SECTION 271(1)(B) OF THE ACT IN THAT CASE. IT IS NATURAL THAT THE ASSESSEE HEREIN BEING THE WIFE OF SHRI K. JAGANNADHA RAO HAS TO ATTEND HER HUSBAND DURING THE PERIOD OF ILLNESS. ACCORDINGLY WE ARE OF THE VIEW THAT THE ASSESSEE HAD A REASONABLE CAUSE FOR HER NON- APPEARANCE BEFORE THE ASSESSING OFFICER. IN VIEW O F THE ABOVE WE SET ASIDE THE ORDER OF THE LEARNED CIT (A) AND DIRECT T HE ASSESSING OFFICER TO DELETE THE PENALTY OF RS.10 000/- LEVIED UNDER SECT ION 271(1)(B) OF THE ACT. 4. IN THE APPEAL NUMBERED AS ITA NO.305/VIZAG/2010 THE ASSESSEE IS CHALLENGING THE DECISION OF THE LEARNED CIT (A) IN CONFIRMING THE ESTIMATED DISALLOWANCE OF EXPENSES BY RS.23 694/-. THE FACTS RELATING TO THE ISSUE ARE STATED IN BRIEF. THE ASSESSEE IS DERIVING INCOME FR OM COMMISSION MONEY LENDING INTEREST ETC. SHE FILED HER RETURN OF INCO ME FOR THE ASSESSMENT YEAR 2006-07 DISCLOSING A TOTAL INCOME OF RS.179383/-. T HE ASSESSEE DID NOT RESPOND TO THE VARIOUS NOTICES ISSUED BY THE ASSESS ING OFFICER AND HENCE THE ASSESSING OFFICER COMPLETED THE ASSESSMENT TO T HE BEST OF HIS JUDGMENT UNDER SECTION 144 OF THE ACT BY DISALLOWING 50% OF THE EXPENSES CLAIMED ITA NOS.304 & 305 OF 2010 OF SMT KN ANURADHA VISAKH APATNAM PAGE 3 OF 4 BY HER WHICH AMOUNTED TO RS.23 694/-. BEFORE THE L EARNED CIT (A) ALSO THE ASSESSEE DID NOT APPEAR AND HENCE THE LEARNED CIT ( A) CONFIRMED THE DISALLOWANCE. HENCE THE ASSESSEE IS IN APPEAL BEFOR E US. 5. THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THE ASSESSEE WAS BUSY ATTENDING HER BED RIDDEN HUSBAND AND HENCE SHE COULD NOT APPEAR BEFORE THE ASSESSING OFFICER. HAVING SATISF IED WITH THE FACT OF ILLNESS THE LEARNED CIT (A) HAD DELETED THE PENALT Y OF RS.10 000/- LEVIED UNDER SECTION 271(1)(B) OF THE ACT IN THE HANDS OF THE HUSBAND OF THE ASSESSEE. IN THE QUANTUM ASSESSMENT ALSO THE LEAR NED CIT(A) RESTRICTED THE SIMILAR DISALLOWANCE MADE TO 10% OF THE TOTAL E XPENDITURE. HE FURTHER SUBMITTED THAT IN THE INSTANT CASE ALSO THE ASSESS EE HAD SUFFICIENT REASON FOR NON-APPEARANCE AND FURTHER THE TOTAL EXPENDITUR E CLAIMED BY THE ASSESSEE IS RS.47 387/- ONLY. ACCORDINGLY HE PRAYE D FOR THE DELETION OF THE DISALLOWANCE SINCE THE EXPENDITURE CLAIMED BY THE A SSESSEE IS VERY MINIMAL. 6. WE HAVE HEARD THE LEARNED DEPARTMENTAL REPRESENT ATIVE ALSO IN THIS REGARD. FROM THE ASSESSMENT ORDER WE NOTICE THAT TH E ASSESSEE HAD CLAIMED EXPENDITURE AS DETAILED BELOW: 1) BANK CHARGES - RS. 145/- 2) BUSINESS PROMOTION - RS. 2 560/- 3) DEPRECIATION - RS. 500/- 4) OFFICE RENT - RS. 12 000/- 5) MISC. EXPENSES - RS. 1 256/- 6) SALARY - RS. 24 000/- 7) POSTAGE - RS. 256/- 8) TRAVELING & CONVEYANCE - RS. 4 560/- 9) TELEPHONE CHARGES - RS. 1 806/- 10) VEHICLE MAINTENANCE - RS. 250/- 11) VEHICLE REPAIR - RS. 54/- ---------------- TOTAL = RS. 47 387/- ======== ITA NOS.304 & 305 OF 2010 OF SMT KN ANURADHA VISAKH APATNAM PAGE 4 OF 4 FROM THE DETAILS OF THE EXPENDITURE FURNISHED ABOVE WE NOTICE THAT THE EXPENDITURE CLAIMED BY THE ASSESSEE UNDER VARIOUS H EADS ARE REASONABLE AND HENCE WE ARE OF THE VIEW THAT THEY DO NOT CALL FOR ANY DISALLOWANCE. ACCORDINGLY WE SET ASIDE THE ORDER OF THE LEARNED CIT (A) AND DIRECT THE ASSESSING OFFICER TO DELETE THE IMPUGNED ADDITION O F RS.23 694/-. 7. IN THE RESULT BOTH THE APPEALS OF THE ASSESSEE A RE ALLOWED. PRONOUNCED IN THE OPEN COURT ON 7 TH DECEMBER 2010. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM DATE: 7-12-2010 COPY TO 1 SMT. K.N. ANURADHA D.NO.50-25-4 SEETHAMMADHARA V ISAKHAPATNAM 530013 2 THE ITO WARD-3(2) VISAKHAPATNAM 3 4. THE CIT 1 VISAKHAPATNAM THE CIT(A) VISAKHAPATNAM 5 THE DR ITAT VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM