Lok Vikas Gramin Bigar Sheti Sah. Patsanstha Ltd.,, Ahmednagar v. ACIT,Ahmednagar Range,, Ahmednagar

ITA 380/PUN/2010 | 2003-2004
Pronouncement Date: 29-07-2011 | Result: Allowed

Appeal Details

RSA Number 38024514 RSA 2010
Assessee PAN AAABL0071E
Bench Pune
Appeal Number ITA 380/PUN/2010
Duration Of Justice 1 year(s) 4 month(s) 14 day(s)
Appellant Lok Vikas Gramin Bigar Sheti Sah. Patsanstha Ltd.,, Ahmednagar
Respondent ACIT,Ahmednagar Range,, Ahmednagar
Appeal Type Income Tax Appeal
Pronouncement Date 29-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 29-07-2011
Assessment Year 2003-2004
Appeal Filed On 15-03-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A PUNE BEFORE SHRI I.C. SUDHIR (JM) AND SHRI G.S. PANNU (AM) SR NO. I.T.A. NO. ASSTT. YEAR APPELLANT V/S RESPONDENT 1 380/PN/2010 2003 - 04 LOK VIKAS GRAMIN BIGER SHETI SAHAKARI PATSANSTHA LTD. C/O. M/S KADAM & CO. VEDANT 8/9 VIRAJ ESTATE OPP.TARAKPUR BUS STAND AHMEDNAGAR 414003 PAN:AAABL0071E ADDITION AL C.I.T. AHMEDNAGAR RANGE AHMEDNAGAR BEHIND MAHESH THEATRE AURANGABAD ROAD AHMEDNAGAR 2 381/PN/2010 2003 - 04 VIVEKANAND GRAMI N BIGAR SHETI SAH. PATSANSTHA LTD. C/O. M/S KADAM & CO. VEDANT 8/9 VIRAJ ESTATE OPP.TARAKPUR BUS STAND AHMEDNAGAR 414003 PAN: AAAAV2778F ADDITIONAL C.I.T. AHMEDNAGAR RANGE AHMEDNAGAR BEHIND MAHESH THEATRE AURANGABAD ROAD AHMEDNAGAR 3 382/PN/2010 2003 - 04 KOTULESHWAR GRAMIN BIGAR SHETI SAH. PATSANSTHA LTD. C/O. M/S KADAM & CO. VEDANT 8/9 VIRAJ ESTATE OPP.TARAKPUR BUS STAND AHMEDNAGAR 414003 PAN:AAAAK4281E ADDITIONAL C.I.T. AHMEDNAGAR RANGE AHMEDNAGAR BEHIND MAHESH THEATRE AURANGABAD ROAD AHMEDNAGAR 4 383/PN/2010 2003 - 04 AKOLE TALUKA SHIKSHAK VA SHIKSHAKETAR KARMACHARI GRAMIN BIGAR SHETI SAH. PATSANSTHA LTD. C/O. M/S KADAM & CO. VEDANT 8/9 VIRAJ ESTATE OPP.TARAKPUR BUS STAND AHMEDNAGAR 414003 PAN:AAAAA5489Q ADDITIONAL C.I.T. AHMEDNAGAR RANGE AHMEDNAGAR BEHIND MAHESH THEATRE AURANGABAD ROAD AHMEDNAGAR 5. 384/PN/2010 2003 - 04 BUWASAHEB NAWALE GRAMIN BIGAR SHETI SAH. PATSANSTHA LTD. C/O. M/S KADAM & CO. VEDANT 8/9 VIRAJ ESTATE OPP.TARAKPUR BUS STAND AHMEDNAGAR 414003 PAN:AAABB0238K ADDITIONAL C.I.T. AHMEDNAGAR RANGE AHMEDNAGAR BEHIND MAHESH THEATRE AURANGABAD ROAD AHMEDNAGAR 6. 385/PN/2010 2003 - 04 SENA PATI BAPAT NAGARI SAHAKARI PATSANSTHA LTD. PARNER ADDITIONAL C.I.T. AHMEDNAGAR RANGE AHMEDNAGAR ITA . NOS. 380 TO 386/PN/2010 LOK VIKAS GRAMIN BIGAR SHETI SAH. PATSANSTHA LTD. A.YS. 2003-04 PAGE OF 4 2 C/O. M/S KADAM & CO. VEDANT 8/9 VIRAJ ESTATE OPP.TARAKPUR BUS STAND AHMEDNAGAR 414003 PAN:AAALS0154P BEHIND MAHESH THEATRE AURANGABAD ROAD AHMEDNAGAR APPELLANT BY : SHRI D.U. KADAM RESPONDENT BY : SHRI S.K. AMBASTHA ORDER PER BENCH IN ALL THESE APPEALS PREFERRED BY THE ASSESSEES I .E.CO-OPERATIVE SOCIETIES THE FIRST APPELLATE ORDER WHEREBY LD CIT (A) HAS UPHELD THE PENALTY LEVIED U/S. 271E HAS BEEN QUESTIONED ON SEVERAL GR OUNDS. 2. AT THE OUTSET OF HEARING THE LD. A.R POINTED OU T THAT UNDER THE SIMILAR FACTS AND CIRCUMSTANCES OF THE CASE AN IDENTICAL I SSUE HAS BEEN DECIDED BY PUNE BENCH OF THE TRIBUNAL IN FAVOUR OF THE ASSESSE E CO-OPERATIVE SOCIETY IN THE FOLLOWING CASES : 1) ITO V/S. VIVEKANAND GRAMIN BIGARSHETHI SAHAKARI PATSANSTHA MARYADIT ITA NO. 545/PN/2010 (A.Y. 2003-04) ORDER DT/ 30 TH SEPTEMBER 2010. 2) SHRAMJIVI NAGARI SAHAKARI PAT SANSTHA V/S. ACIT ITA NO. 477/PN/2010 (A.Y. 2006-07) ORDER DT. 8 TH JUNE 2011. 3. THE LD.A.R. EXPLAINED THAT MOST OF THE MEMBERS TO WHOM DEPOSITS WERE REPAID ARE FARMERS AND SMALL BUSINESSMAN WITH NO T AXABLE INCOME AND NO BANK ACCOUNT. ALL THE TRANSACTIONS WERE GENUINE AN D BONAFIDE AND THERE WAS NO EVASION OF TAX OR CONCEALMENT OF INCOME OR LOSS OF REVENUE. HE SUBMITTED THAT THE IMPUGNED VIOLATION OCCURRED BECAUSE OF IGN ORANCE OF LAW AND UNAWARENESS OF LEGAL PROVISIONS. THE MISTAKE WAS I NNOCENT AND BONAFIDE. THE ITA . NOS. 380 TO 386/PN/2010 LOK VIKAS GRAMIN BIGAR SHETI SAH. PATSANSTHA LTD. A.YS. 2003-04 PAGE OF 4 3 CONTRAVENTION OF PROVISION OF SECTION 269T OF THE A CT WAS WITHOUT ANY MALAFIDE HENCE PENALTY LEVIED U/S. 271E MAY BE DE LETED. HE ALSO POINTED OUT THAT SIMULTANEOUSLY PENALTY U/S. 271D WAS ALSO LEV IED BY THE A.O WHICH HAS BEEN DELETED BY THE LD CIT(A) HOLDING THAT THERE WA S REASONABLE CAUSE FOR VIOLATING THE PROVISIONS OF SECTION 269-SS OF THE ACT. HE HAS HOWEVER UPHELD THE PENALTY LEVIED U/S. 271E OF THE ACT. 4. THE LD. D.R ON THE OTHER HAND OPPOSED THE APPE AL WITH THIS SUBMISSION THAT THE ASSESSEES ARE BEING ASSISTED BY EXPERT HE NCE THE IGNORANCE OF LAW CANNOT BE ENTERTAINED IN THEIR CASES. 5. CONSIDERING THE ABOVE SUBMISSIONS WE FIND THAT IN THE CITED DECISIONS SIMILAR REASONS WAS EXPLAINED FOR THE FAULT COMMITT ED BY THE ASSESSEE SOCIETY THEREIN. SINCE THERE WAS NO REASON TO DOUBT THE BO NAFIDE SHOWN BY THE ASSESSEE FOR THE DEFAULT THE TRIBUNAL INVOKING THE PROVISIONS OF SECTION 273-B OF THE ACT HAS DIRECTED TO DELETE THE PENALTY. IN THE CASE OF SHRAMJIVI NAGARI SAHAKARI PAT SANSTHA MARYADIT V/S. ACIT (SUPRA) T HE TRIBUNAL HAS ALSO REFERRED THE ADVICE OF THE CBDT VIDE ITS LETTER F.N O. 415/6/2000-IT (INB-I) DT. 25 TH MARCH 2004 THAT PENALTIES U/S. 271-D AND 271-E FOR VIOLATION OF THE PROVISIONS OF SEC. 269-SS AND 269-T RESPECTIVELY S HOULD NOT BE INDISCRIMINATELY IMPOSED. THE PROVISIONS OF SEC. 2 73B SHOULD BE TAKEN IN VIEW BEFORE IMPOSING THE PENALTY. BASED UPON THE SAID A DVICE THE LD CCIT PUNE VIDE ITS LETTER DT. 10.9.2008 HAS CONVEYED TO THE C OMMISSIONER OF INCOME TAX TO STAY THE DEMAND ARISING OUT OF THE PENALTIES IM POSED U/S. 271D AND 271E IN CASES OF CO-OPERATIVE CREDIT SOCIETY. IN THE PRESE NT APPEALS BEFORE US WE ALSO DO NOT HAVE ANY REASON TO DOUBT THE BONAFIDE S HOWN BY THE ASSESSEE HEREINABOVE IN COMMITTING THE ALLEGED DEFAULT OF SE CTION 269-T OF THE ACT DUE TO IGNORANCE OF LAW AND UNAWARENESS OF LEGAL PROVIS ION. WE THUS INVOKING PROVISION OF SECTION 273-B OF THE ACT DIRECT THE A. O TO DELETE THE PENALTY IN ITA . NOS. 380 TO 386/PN/2010 LOK VIKAS GRAMIN BIGAR SHETI SAH. PATSANSTHA LTD. A.YS. 2003-04 PAGE OF 4 4 QUESTION LEVIED U/S. 271E OF THE ACT. THE GROUNDS QUESTIONING THE VALIDITY OF FIRST APPELLATE ORDER UPHOLDING THE PENALTY IS THU S ALLOWED. 6. CONSEQUENTLY THE APPEALS ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 29TH JULY 2011 SD/- SD/- ( G.S. PANNU ) ACCOUNTANT MEMBER ( I.C. SUDHIR ) JUDICIAL MEMBER PUNE DATED THE 29TH JULY 2011 US COPY OF THE ORDER IS FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT I PUNE 4. THE CIT(A)-I KOLHAPUR 5. THE D.R. A BENCH PUNE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE