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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI KUL BHARAT & SHRI MANISH BORAD
आयकर अपील�य अ�धकरण, इ�दौर �यायपीठ, इ�दौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE
BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA No.601/Ind/2018 Assessment Year: 2010-11 M/s. Rathi Iron and Steels ACIT, TDS बनाम/ Industries Ltd. Indore Vs. 103, Laxmi Tower, 576, MG Road, Indore (Appellant) (Revenue) PAN: AACCR2011B Appellant by Shri Venus Rawka, CA Revenue by Shri R.P. Mourya, Sr. DR Date of Hearing: 25.06.2019 Date of Pronouncement: 05.07.2019 आदेश / O R D E R PER MANISH BORAD, A.M: This appeal by Assessee pertaining to A.Y. 2010-11 is directed against the order of Ld. Commissioner of Income Tax(Appeals)-1, Indore, (in short ‘CIT(A)’), dated 13.04.2018 which is arising out of the order u/s 272A(1)(c) of the Income Tax Act 1961(hereinafter called as the ‘Act’) framed on 27.12.2016 by ACIT(TDS), Indore. 2. The Assessee has raised following grounds of appeal: “That the Learned AO erred in law and the fact of the
Rathi Iron & Steel Industries ltd. ITANo.601/Ind/2018 case and levied the penalty u/s 272A(1)(c) of the income tax act 1961 of Rs.20,000/- without considering full facts. The penalty levied therefore is wrong on the facts of the case.
Briefly stated facts as culled out from the records are that the assessee is a limited company. Summons u/s 131 of the Act were issued on 10.02.2016 and 17.10.2016 by the ITO-TDS-II, Indore and for non-compliance to the said notices the Learned Assessing Officer (in short ‘ld. AO’) levied penalty of Rs.10,000/- each thereby levying penalty of Rs.20,000/- u/s 272A(1)(c) of the Act vide order dated 27.12.2016.
Aggrieved assessee preferred an appeal before the ld. CIT(A) against the alleged levy of penalty of Rs.20,000/- u/s 272A(1)(c) of the Act but failed to get any relief.
Now the assessee is in appeal before the Tribunal.
We have heard rival contentions and perused the record placed before us. Penalty u/s 272A(1)(c) of the Act levied by Ld. AO at Rs.20,000/- @ Rs.10,000/- each for non-compliance to summons issued u/s 131 of the Act on 10.02.2016 and 17.10.2016 has been confirmed by the ld. CIT(A).
We observe that as per the provisions of u/s 272A(1)(c) of the Act penalty of Rs.10,000/- is leviable for each such default or failure on the part of a person to whom a summons is issued under sub- 2
Rathi Iron & Steel Industries ltd. ITANo.601/Ind/2018 section (1) of section 131 either to attend to give evidence or produce books of account or other documents at a certain place and time omits to attend or produce books of account or documents at the place or time; or.
On perusal of the records we find that as regards the summon dated 10.02.2016 fixing the date of hearing on 16.02.2016 for furnishing documents to the questionnaire for pending proceedings u/s 201(1) and 201(1A) for financial year 2009-10, the assessee filed the reply through its representative by a letter sent via speed post on 16.02.2016 explaining his inability to provide documents and information as the same were seized by the investigation department during search. It was also submitted that copies of seized documents were awaited.
As regards the summon dated 17.10.2016 no reasonable cause for failure to comply the summon has been filed by the assessee at any stage.
We, therefore, in the given facts and circumstances of the case are of the considered view that no penalty u/s 272A(1)(c) of the Act was leviable at Rs.10,000/- for the alleged non-compliance of the summon dated 10.02.2016 and the same deserves to be deleted. However, the penalty levied for non-compliance to summon dated 17.10.2016 needs to be confirmed, as the Ld. counsel for the
Rathi Iron & Steel Industries ltd. ITANo.601/Ind/2018 assessee failed to bring on record any reasonable cause on the part of the assessee for the said failure. 11. In the result of the appeal of the assessee is partly allowed and the penalty u/s 272A(1)(c) of the Act is confirmed to the extent of Rs.10,000/-.
In the result, the appeal of the Assessee is partly allowed.
Order was pronounced in the open court on 05.07.2019.
Sd/- Sd/- (KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore; �दनांक Dated : 05/07/2019 ctàxÄ? P.S/.�न.स.
Copy to: Assessee/AO/Pr. CIT/ CIT (A)/ITAT (DR)/Guard file.
By order Assistant Registrar