M/s. RMEC Projects Ltd., Pune v. Asst. CIT Central Circle-2(2), Pune

ITA 898/PUN/2009 | misc
Pronouncement Date: 29-07-2011 | Result: Allowed

Appeal Details

RSA Number 89824514 RSA 2009
Assessee PAN AABCR2339G
Bench Pune
Appeal Number ITA 898/PUN/2009
Duration Of Justice 1 year(s) 11 month(s) 26 day(s)
Appellant M/s. RMEC Projects Ltd., Pune
Respondent Asst. CIT Central Circle-2(2), Pune
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 misc
Appeal Filed On 03-08-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B PUNE BEFORE SHRI I.C. SUDHIR (JM) AND SHRI G.S. PANNU (AM) ITA NO.898/PN/2009 (BLOCK PERIOD 1997-98 TO 2003-04(PART)) M/S. RMEC PROJECTS LTD. ... APPELLANT KALPANA TARANG 42/9 ERANDWANA KARVE ROAD PUNE 411 004 PAN : AA BCR 2339 G V. ASST. CIT CENTRAL CIRCLE 2(2) PUNE RESPONDENT APPELLANT BY : SHRI S.U. PATHAK RESPONDENT BY : SMT. MITALI MADHUSMITA CIT (DR) ORDER PER I.C. SUDHIR JM THE ASSESSEE HAS IMPUGNED FIRST APPELLATE ORDER ON THE GROUND THAT THE LD CIT(A) HAS ERRED IN CONFIRMING THE INTEREST LEVIED U/S. 158BFA(1) OF THE I.T. ACT AT RS.1 76 865/- WITHOUT APPRECIATI NG DELAY IN FILING THE RETURN OF INCOME IS NOT ATTRIBUTABLE TO THE ASSESSE E. 2. IN SUPPORT OF THE GROUND THE LD. A.R. SUBMITTED THAT THE RETURN FILED BY THE ASSESSEE IN RESPONSE TO NOTICE ISSUED U/S. 158BC WAS DELAYED BECAUSE OF NOT PROVIDING XEROX COPIES OF THE SEIZED MATERIAL AND/OR COPIES OF SUBMISSIONS MADE DURING THE COURSE OF SEA RCH AND SEIZURE. THE AUTHORITIES BELOW DID NOT ACCEPT THIS EXPLANATION O F THE ASSESSEE. THE LD CIT(A) HAS EVEN FAILED TO APPRECIATE THE DECISION O F RAJKOT BENCH OF THE TRIBUNAL IN THE CASE OF BACHUBHAI S. ANTROLIA V/S. ACIT (2006) 103 TTJ (RAJ.) 73. 3. THE LD. D.R. ON THE OTHER HAND TRIED TO JUSTIF Y THE ORDERS OF THE AUTHORITIES BELOW. ITA . NO 898/PN/2009 M/S.RMEC PROJECTS LTD.. (B.P. 97-98 TO 03-04(PART) PAGE OF 3 2 4. AFTER HAVING GONE THROUGH THE ORDERS OF THE AUTH ORITIES BELOW AND CITED DECISION WE FIND THAT THE AUTHORITIES BELOW HAVE NOT APPRECIATED THE REASON FOR THE DELAY IN FILING THE RETURN OF I NCOME IN RESPONSE TO THE NOTICE ISSUED U/S. 158BC OF THE ACT EXPLAINED BY THE ASSESSEE AS DUE TO NON-PROVIDING OF COPIES OF SEIZED MATERIAL AND/OR C OPIES OF SUBMISSIONS MADE DURING THE COURSE OF SEARCH AND SEIZURE BY TH E DEPARTMENT. THE LD CIT(A) IN HIS FINDING IN PARA NO. 5 OF THE FIRST APPELLATE ORDER HAS OBSERVED THAT THERE IS NO DISCRETION GIVEN TO THE A .O SO FAR AS CHARGING OF INTEREST U/S. 158BFA (1) IS CONCERNED. IN HIS OP INION WHENEVER THERE IS A DELAY IN FILING OF RETURN THE A.O HAS TO NEC ESSARILY CHARGE INTEREST WHICH IS IMPLIED BY THE USE OF EXPRESSION ASSESSE E SHALL BE LIABLE TO PAY SIMPLE INTEREST. THE LD CIT(A) HAS THUS UPHELD T HE ACTION OF THE A.O IN CHARGING INTEREST U/S. 158BFA(1) OF THE ACT. WE FI ND THAT UNDER ALMOST SIMILAR FACTS AND CIRCUMSTANCES ON AN IDENTICAL IS SUE THE RAJKOT BENCH OF THE TRIBUNAL IN THE CASE OF BACHUBHAI S. ANTROLIA V /S. ACIT (SUPRA) HAS HELD THAT FILING OF CORRECT RETURN IS NOT POSSIBLE UNLESS THE COPIES OF SEIZED MATERIALS AND/OR COPIES OF THE STATEMENTS RECORDED DURING THE SEARCH IS MADE AVAILABLE TO THE ASSESSEE RECORDED BY THE DEPA RTMENT. DELAY IN FURNISHING THE RETURN WAS DUE TO INACTION ON THE P ART OF THE DEPARTMENT IN SUPPLYING THE COPIES OF SEIZED MATERIAL AND THER E IS NO ELEMENT OF LACK OF BONAFIDES ON THE PART OF THE ASSESSEE IN FURNISH ING THE RETURN AFTER RECEIPT OF SEIZED MATERIAL. LEVY OF INTEREST U/S. 158BFA(1) OF THE ACT IN THAT CASE WAS THUS SET ASIDE BY THE TRIBUNAL AND T HE MATTER WAS RESTORED TO THE A.O. DIRECTING HIM NOT TO LEVY ANY INTEREST FOR THE PERIOD THE XEROX COPIES OF ALL SUCH MATERIALS WERE MADE AVAILABLE TO THE ASSESSEE. WE RESPECTFULLY FOLLOWING THE ABOVE DECISION OF RAJKOT BENCH OF THE TRIBUNAL ON AN IDENTICAL ISSUE SET ASIDE THE MATTER TO THE F ILE OF THE A.O WITH DIRECTION TO HIM NOT TO LEVY ANY INTEREST FOR THE P ERIOD ONLY THE XEROX ITA . NO 898/PN/2009 M/S.RMEC PROJECTS LTD.. (B.P. 97-98 TO 03-04(PART) PAGE OF 3 3 COPIES OF ALL SUCH MATERIALS WERE MADE AVAILABLE TO THE ASSESSEE. THE GROUND IS THUS ALLOWED FOR STATISTICAL PURPOSES. 5. IN RESULT APPEAL IS ALLOWED FOR STATISTICAL PUR POSES. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 29TH J ULY 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 -II PUNE 4. THE CIT(A)-II PUNE 5. THE D.R. B BENCH PUNE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE