Sri Shaik Shameem Basha, Narasaraopeta v. The ITO, Ward-1, Narasaraopeta

ITA 502/VIZ/2009 | 2006-2007
Pronouncement Date: 29-03-2010 | Result: Allowed

Appeal Details

RSA Number 50225314 RSA 2009
Assessee PAN AGWPB0760E
Bench Visakhapatnam
Appeal Number ITA 502/VIZ/2009
Duration Of Justice 4 month(s) 23 day(s)
Appellant Sri Shaik Shameem Basha, Narasaraopeta
Respondent The ITO, Ward-1, Narasaraopeta
Appeal Type Income Tax Appeal
Pronouncement Date 29-03-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 29-03-2010
Date Of Final Hearing 24-03-2010
Next Hearing Date 24-03-2010
Assessment Year 2006-2007
Appeal Filed On 06-11-2009
Judgment Text
PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI BR BASKARAN ACCOUNTANT MEMBER ITA NO.502/VIZAG/2009 ASSESSMENT YEAR: 2006-07 SHAIK SHAMEEM BASHA NARASARAOPET VS. ITO WARD-1 NARASARAOPET (APPELLANT) (RESPONDENT) PAN NO.AGWPB 0760 E APPELLANT BY: SHRI GVN HARI CA RESPONDENT BY: SHRI G.S.S. GOPINATH DR ORDER PER SHRI B R BASKARAN ACCOUNTANT MEMBER : THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 24.8.2009 PASSED BY THE LD CIT(A) GUNTUR CONFIRMIN G THE PENALTY OF RS.24 506/- LEVIED U/S 271 B OF THE ACT FOR THE ASS ESSMENT YEAR 2006-07. 2. THE FACTS RELATING TO THE ISSUE IS STATED IN BRI EF. THE ASSESSEE IS DERIVING INCOME FROM CONTRACT WORKS. FOR THE ASSESS MENT YEAR 2006-07 HE REPORTED A TURNOVER OF RS.49 01 281/-. HENCE THE A SSESSEE WAS REQUIRED TO GET HIS BOOKS OF ACCOUNT AUDITED AND FILE THE AUDIT REPORT WITH THE ASSESSING OFFICER BEFORE THE SPECIFIED DATE I.E. ON OR BEFOR E 31.10.2006. THOUGH THE AUDIT REPORT OBTAINED BY THE ASSESSEE WAS DATED 31. 10.2006 YET THE SAME PAGE 2 OF 3 WAS FILED ONLY ON 15.11.2006. HENCE THE ASSESSING OFFICER INITIATED PENALTY PROCEEDING U/S 271 B OF THE ACT AND LEVIED A PENALT Y OF RS.24 506/- FOR THE DELAY IN FILING THE TAX AUDIT REPORT. THE LD CIT(A) CONFIRMED THE LEVY OF PENALTY. AGGRIEVED THE ASSESSEE IS IN APPEAL BEFOR E US. 3. WE HAVE HEARD THE PARTIES AND CAREFULLY PERUSED THE RECORD. THE EXPLANATION OF THE ASSESSEE FOR THE DELAY IN FILING THE AUDIT REPORT WAS THAT HE WAS ADVISED TO TAKE REST FOR 15 DAYS FROM 25.10.200 6 ON ACCOUNT OF HIS ILLNESS AND HENCE HE COULD NOT FILE THE SAME BEFORE THE SPECIFIED DATE. IN SUPPORT OF HIS EXPLANATION THE ASSESSEE HAS FILED A CERTIFICATE FROM THE DOCTOR. THE EXPLANATION OF THE ASSESSEE WAS NOT ACCEPTED BY THE AS HE WAS OF THE VIEW THAT THE ASSESSEE COULD HAVE GOT HIS ACCOUNTS AUDITED PRIOR TO HIS ILLNESS. 3.1 THE UNDISPUTED FACT IS THE ASSESSEE GOT THE AUDIT REPORT ON 31.10.2006 I.E. BEFORE THE SPECIFIED DATE. THE AO S ALLEGATION THAT THE AUDIT REPORT WAS BACK DATED DOES NOT HAVE ANY BASIS. ACCO RDING TO THE LD AR THE ASSESSEE WAS LIABLE FOR TAX AUDIT FOR THE FIRST TIM E ONLY DURING THE INSTANT YEAR. ACCORDING TO THE ASSESSEE HE WAS ADVISED TO TAKE REST FOR FIFTEEN DAYS FROM 25.10.2006 BY HIS DOCTOR AND IN SUPPORT OF HIS EXPLANATION; HE HAS FILED A CERTIFICATE FROM THE DOCTOR. THIS EXPLANATION OF THE ASSESSEE HAS NOT BEEN FOUND TO BE FALSE BY THE AO ON THE BASIS OF ANY MAT ERIAL. ALL THESE FACTS SHOW THAT THE ASSESSEE HAD REASONABLE CAUSE FOR THE DELA Y IN FILING TAX AUDIT REPORT. ACCORDING TO SECTION 273 B OF THE ACT PENALTY U/S 271 B SHALL NOT BE IMPOSED IF THE ASSESSEE PROVED THAT THERE WAS REASONABLE CA USE FOR THE FAILURE. THE PAGE 3 OF 3 ASSESSEE HAS SUFFICIENTLY EXPLAINED THE DELAY WHIC H IN OUR OPINION IS REASONABLE. IN VIEW OF THE ABOVE WE SET ASIDE THE OR DER OF THE TAX AUTHORITIES AND CANCEL THE PENALTY OF RS.24 506/- LEVIED U/S 27 1 B OF THE ACT. 4. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 30-03-2010. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM DATE: 30 TH MARCH 2010. COPY TO 1 SHRI SHAIK SHAMEEM BASHA PROP: NATIONAL ENGINEER ING WORKS NAVODAYA NAGAR NARASARAOPET 2 THE ITO WARD-I NARASARAOPET 3 THE CIT GUNTUR 4 THE CIT(A) GUNTUR 5 THE DR ITAT VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM