JBF INDUSTRIES LTD, MUMBAI v. ACIT CIR 4(2), MUMBAI

ITA 4593/MUM/2012 | 2008-2009
Pronouncement Date: 24-10-2013 | Result: Allowed

Appeal Details

RSA Number 459319914 RSA 2012
Assessee PAN AAACJ2575J
Bench Mumbai
Appeal Number ITA 4593/MUM/2012
Duration Of Justice 1 year(s) 3 month(s) 18 day(s)
Appellant JBF INDUSTRIES LTD, MUMBAI
Respondent ACIT CIR 4(2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 24-10-2013
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted J
Tribunal Order Date 24-10-2013
Date Of Final Hearing 24-10-2013
Next Hearing Date 24-10-2013
Assessment Year 2008-2009
Appeal Filed On 06-07-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL J BENCH MUMBAI BEFORE SHRI H.L.KARWA PRESIDENT & SHRI N.K.BILLAIYA AM ITA NO . 4593 / MUM/ 20 1 2 ( ASSESSMENT YEAR : 20 0 8 - 20 0 9 ) JBF INDUSTRIES LIMITED EXPRESS TOWER 8 TH FLOOR NARIMAN POINT MUMBAI - 400 021 VS. ACIT CIR - 4(2) MUMBAI PAN/GIR NO. : A A AC J 2575 J ( APPELLANT ) .. ( RESPONDENT ) /ASSESSEE BY : DR. K.SHIVARAM & MR. RAHUL SARDA /REVENUE BY : MR. SHISHIR SRIVASTAVA DATE OF HEARING : 2 4 TH DATE OF PRONOUNCEMENT : 2 4 TH OCTOBER 2013 O R D E R PER N.K.BILLAIYA AM : THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST THE ORDER OF THE CIT(A) - 8 MUMBAI DATED 25 - 4 - 2012 PERTAINING TO ASSESSMENT YEAR 20 0 8 - 200 9 . 2 . THE SHORT GRIEVANCE OF THE ASSESSEE IS THAT THE LEARNED CIT(A) ERRED IN CONFIRMING THE PENALTY LEVIED UNDER SECTION 221(1) OF THE ACT AMOUNTING TO RS. 1 00 000/ - . 3 . THE ROUTES FOR LEVY OF PENALTY LIE IN THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) ON 23 - 12 - 2010 DETERMINING THE TOTAL INCOME OF THE ASSESSEE AT RS.103 53 85 070/ - RESULTING INTO A DEMAND OF RS.21 43 29 534/ - . THE AO LEVIED THE PENALTY ON ASSESSEES DEFAULT FOR NOT PAYING TAX. ITA NO. 4593 / 1 2 2 4 . THE ASSESSEE CARRIED THE MATTER BEFORE THE CIT(A) BUT FAILED TO CONVINCE THE CIT(A) THAT THE DEFAULT WAS FO R GOOD AND SUFFICIENT REASONS. 5 . BEFORE US LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAD VERY GOOD AND SUFFICIENT REASONS FOR NOT PAYING THE DEMAND RAISED BY THE ASSESSMENT ORDER DATED 23 - 12 - 2010. THEREFORE THE PENALTY SO LEVIED DES ERVES TO BE CANCELLED. 6. PER CONTRA LEARNED DR STRONGLY SUPPORTING THE FINDINGS OF THE CIT(A) SUBMITTED THAT THE ASSESSEE DID NOT HONOUR THE INSTALLMENTS GRANTED TO IT BY THE CIT(A) AND THEREFORE THE AO HAS RIGHTLY LEVIED PENALTY UNDER SECTION 2 2 1(1) OF THE ACT. 7 . WE HAVE CAREFULLY PERUSED THE ORDERS OF THE AUTHORITIES BELOW AND THE MATERIAL EVIDENCE BROUGHT ON RECORD IN THE FORM OF A PAPER BOOK. THE EVIDENCES ON RECORD SHOW THAT IMMEDIATELY AFTER THE ASSESSMENT ORDER THE ASSESSEE FILED AN APPL ICATION UNDER SECTION 154 OF THE ACT ON 7 - 2 - 2011 POINTING OUT 11 MISTAKES WHICH WERE APPARENT FROM RECORD. THE AO PASSED RECTIFICATION ORDER ON 23 - 2 - 2011 AND REVISED THE DEMAND TO RS. 11 18 55 167/ - . HOWEVER TO THE SURPRISE OF THE ASSESSEE THE AO HAS NO T DEALT WITH ALL THE ERRORS POINTED OUT BY THE ASSESSEE. THEREFORE THE ASSESSEE ONCE AGAIN FILED AN APPLICATION ON 15 - 6 - 2011 WHICH IS EXHIBITED AT PAGE 21 OF THE PAPER BOOK POINTING OUT TO THE AO THE REMAINING ERRORS WHICH NEED TO BE RECTIFIED. THE ASSES SEE DID NOT RECEIVE ANY RESPONSE FROM THE AO IN RESPECT OF THIS ITA NO. 4593 / 1 2 3 APPLICATION . THEREAFTER THE ASSESSEE FILED A STAY APPLICATION BEFORE THE CIT ON 9 - 3 - 2011. THE CIT VIDE ORDER DATED 28 - 3 - 2011 DIRECTED THE AO TO DISPOSE OFF THE RECTIFICATION APPLICATION ADJUS T REFUND OF SUBSEQUENT YEAR AND THEN ALLOW FOUR INSTALLMENTS OF PAYMENT OF TAX DEMAND IF ANY. THE AO DID NOT COMPLY WITH THE DIRECTIONS OF THE CIT INSTEAD VIDE NOTICE DATED 9 - 6 - 2011 UNDER SECTION 221 SOUGHT EXPLANATION FROM THE ASSESSEE AS TO WHY THE PE NALTY SHOULD NOT BE LEVIED UNDER SECTION 221(1) OF THE ACT AND WENT ON TO LEVY THE PENALTY OF RS. 1 00 000/ - UNDER SECTION 221(1) VIDE ORDER DATED 30 - 6 - 2011 . THOUGH THE PENALTY ORDER IS DATED 30 - 6 - 2011 THE CIT(A) HAS ALREADY ALLOWED THE QUANTUM APPEAL OF THE ASSE SSEE IN PART VIDE ORDER DATED 27 - 6 - 2011. BY THIS ORDER OF THE CIT(A) THE DEMAND WAS SUBSTANTIALLY REDUCED. THESE MATERIAL EVIDENCES ON RECORD CLEARLY SHOW THAT THE DEFAULT OF THE ASSESSEE WAS FOR GOOD AND SUFFICIENT REASONS AND THE ASSESSEE IS SAVED BY TH E LEVY OF PENALTY BY VIRTUE OF THE SECOND PROVISO TO SECTION 221(1) OF THE ACT. ACCORDINGLY WE D IRECT THE AO TO CANCEL THE PENALTY. 8 . RESULTANTLY THE APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 2 4 /10/ 2013 . SD/ - ( ) ( H.L.KARWA ) SD/ - ( ) ( N.K .BILLAIYA ) / PRESIDENT / ACCOUNTANT MEMBER MUMBAI ; DATED : 2 4 /10 /2013 /PKM PS ITA NO. 4593 / 1 2 4 COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPO NDENT. 3. / THE CIT(A) MUMBAI. 4. / CIT 5. / DR ITAT MUMBAI 6. GUARD FILE. //TRUE COPY// / BY ORDER ( ASSTT. REGISTRAR) / ITAT MUMBAI