M/s. ICDS Limited, Manipal v. DCIT, Udupi

ITSSA 31/BANG/2009 | misc
Pronouncement Date: 20-04-2010 | Result: Allowed

Appeal Details

RSA Number 3121116 RSA 2009
Bench Bangalore
Appeal Number ITSSA 31/BANG/2009
Duration Of Justice 10 month(s) 25 day(s)
Appellant M/s. ICDS Limited, Manipal
Respondent DCIT, Udupi
Appeal Type Income Tax (Search & Seizure) Appeal
Pronouncement Date 20-04-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 20-04-2010
Date Of Final Hearing 04-03-2010
Next Hearing Date 04-03-2010
Assessment Year misc
Appeal Filed On 26-05-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH A BEFORE DR. O.K NARAYANAN VICE PRESIDENT AND SHRI SHAILENDRA KUMAR YADAV JUDICIAL MEMBER ITA NO.26/BAN G/2010 (AS ST. YEAR - 2004-05) M/S SYNERGISTICS SECURITY PRODUCTS (I) PVT. LTD. NO.348 14 TH CROSS IX MAIN SECOND STAGE INDIRANAGAR BANGALORE-560 038. . APPELLANT VS. THE ASST. COMMISSIONER OF INCOME-TAX CIRCLE-12(2) BANGALORE. . RESPONDENT APPELLANT BY : SHRI NARENDRA KUMAR ADVOCATE RESPONDENT BY : SMT. JACINTA ZIMIK VASHAI ADDL. COMMISSIONER OF INCOME-T AX O R D E R PER DR. O.K NARAYANAN VICE PRESIDENT THIS APPEAL IS FILED BY THE ASSEESSEE. THE RELEV ANT ASSESSMENT YEAR IS 2004-05. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE CIT(A) III AT BANGALORE DATED 12/10/2009 AND ARISES OUT OF THE PENALTY ORDER PASSED U/S 271B. ITA NO.26/B/2010 2 2. THE LAW PROVIDES THAT THE ASSESSEE BOUND TO GET HI S ACCOUNTS AUDITED U/S 44AB HAS TO FILE THE AUDIT REPORT WITHI N THE TIME STIPULATED U/S 139(1). IN THE PRESENT CASE THE FILING WAS MA DE ONLY ON 31.01.2005. THERE WAS FAILURE ON THE PART OF THE ASSESSEE TO FILE THE AUDIT REPORT ALONG WITH THE RETURN OF INCOME BEFORE THE DUE DATE. NOTICE U/S 271 READ WITH SEC. 271B WAS ISSUED ON 18 .08.2005. THE EXPLANATION FOR THE DELAY WAS STATED TO BE ILLNESS OF ONE OF THE DIRECTORS OF THE ASSESSEE COMPANY. BUT THE ASSESSI NG OFFICER HELD THAT ILL HEALTH OF THE DIRECTOR HAS IN NO WAY AFFEC TED IN THE DAY TO DAY BUSINESS ACTIVITIES OF THE ASSESSEE COMPANY. HE AL SO OBSERVED THAT HOW THE ACCOUNTS COULD BE AUDITED WITHIN THREE DAYS WHEN ONE OF THE DIRECTORS OF THE ASSESSEE COMPANY WAS ILL. ACCORDI NGLY HE REJECTED THE ARGUMENTS OF THE ASSESSEE AND LEVIED THE PENALT Y OF RS.1 LAKH. THE LEVY OF PENALTY WAS CONFIRMED IN THE APPEAL. THE AS SESSEE IS AGGRIEVED AND THEREFORE THE SECOND APPEAL BEFORE US. IN SU PPORT OF THE CONTENTIONS THE LEARNED COUNSEL APPEARING FOR THE ASSESSEE HAS RELIED ON THE FOLLOWING DECISIONS : (I) CIT VS. KPV SHAIK MOHAMMED ROWTHER CO. 1998 (232) ITR 176 (MAD.) (II) CWT VS. RAMANIKLAL D MEHTA 1982 (136) ITR 729 (ORS.). ITA NO.26/B/2010 3 3. WE CONSIDERED THE ISSUE. IT IS NOT A CASE WHERE NO AUDIT REPORT WAS FILED AT ALL. THE AUDIT REPORT WAS FILED BUT B ELATED. THE AUDIT REPORT WAS FILED ON 31.01.2005. THE DELAY IS VERY NOMINAL. THE ASSESSEE HAS EXPLAINED THE REASON THAT ONE OF THE A CTIVE DIRECTORS OF THE ASSESSEE COMPANY WAS ILL DURING THE RELEVANT PE RIOD. THE LOWER AUTHORITIES HAVE NO DISPUTE ON THE SAID STATE OF AF FAIRS THAT THE DIRECTOR WAS ILL. IN THE LIGHT OF THESE CIRCUMSTANCES WE F IND THAT THE EXPLANATIONS OFFERED BY THE ASSESSEE DO REALLY CONS TITUTE A REASONABLE CAUSE AS ENVISAGED IN SEC. 271B. WE FIND THAT THE L EVY OF PENALTY IS NOT JUSTIFIED. IT IS DELETED. 4. IN RESULT THE APPEAL FILED BY THE ASSESSEE IS A LLOWED. ORDER PRONOUNCED ON TUESDAY THE 20TH DAY OF APRIL 2010 AT BANGALORE. SD/- SD/- (SHAILENDRA KUMAR YADAV) (DR. O.K NARAYA NAN) JUDICIAL MEMBER VICE PR ESIDENT VMS. ITA NO.26/B/2010 4 COPY TO : 1. THE ASSESSEE 2. THE REVENUE 3.THE CIT CONCERNED. 4.THE CIT(A) CONCERNED. 5.DR 6.GF 7..GF ITAT NEW DELHI. BY ORD ER ASST. REGISTRAR ITAT BANGAL ORE.