SRI GIRISH CHANDRA SHUKLA,LUCKNOW vs. JOINT DIRECTOR OF INCOME TAX (I&CI), LUCKNOW

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ITA 764/LKW/2017Status: DisposedITAT Lucknow03 May 2019AY 2012-134 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the delay in responding to the notice was due to reasonable circumstances explained by the assessee. Therefore, the penalty levied solely for the delay was not justifiable.

What were the facts?

The assessee, a retired government employee, failed to comply with a notice issued under Section 133(6) of the Income Tax Act for information regarding motor vehicle purchases. Consequently, a penalty was levied under Section 272A(2)(c).

What were the issues?

Whether a penalty under Section 272A(2)(c) is justified for a delayed response to a notice under Section 133(6) when the delay is reasonably explained.

Which sections of the Income-tax Act were involved?

Section 133(6),Section 272A(2)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH “B”, LUCKNOW

Before: SHRI. A. D. JAIN & SHRI T. S. KAPOOR

For Appellant: Shri S. C. Dixit, Advocate
For Respondent: Shri S. K. Madhuk, CIT (DR)

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “B”, LUCKNOW BEFORE SHRI. A. D. JAIN, VICE PRESIDENT AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER ITA No.764/LKW/2017 Assessment Year: 2012-13 Girish Chandra Shukla v. JDIT (I&CI) 14/17, Clay Square Lucknow Kabir Marg, Lucknow TAN/PAN:ACFPS6177D (Appellant) (Respondent) Appellant by: Shri S. C. Dixit, Advocate Respondent by: Shri S. K. Madhuk, CIT (DR) Date of hearing: 30 04 2019 Date of pronouncement: 03 05 2019 O R D E R PER A. D. JAIN, V.P.: This is assessee’s appeal against the order of the ld. CIT(A)-2, Lucknow, dated 28/9/2017 for assessment year 2012-13, taking the following grounds of appeal:- 1. Because the order of the learned CIT and the Add. Director of Income Tax Intelligence & criminal investigation) are arbitrary, misconceived and against the law of natural Justice. 2. Because the order passed by the Assessing officer has erred in law and on facts, in penalty levied of Rs.40400.00 on the appellant, on the basis of wrong interpretation of the section 272A(2) of the Income Tax Act, without considering the facts, submitted by the appellant vide letter dated 23/4/2015 and 23/09/2015. 3. Because both Learned Authority have erred in law and on facts is not considering the facts. That the appellant has filed reply vide letter dated 23/4/2015.

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4.

Because the assessment order is being cryptic and having been passed without section of mind it is arbitrary exercise of power. 5. Because the finding recorded by the Add. Director of income Tax (intelligence & criminal investigation) is clear misreading of document on record and utter disregard of the provisions of law causing grave injustice o the appellant resulting in gross failure of justice to the appellant. 6. Because the order appealed against is contrary to facts, law and principals d natural justice. 7. Because in relation to the grounds of appeal taken herein fore, the 'appellant’ begs to refer and rely upon the averments that have been made in the statement of facts accompanying the memo of appeal itself.

2.

The brief facts of the case are that the assessee, a retired employee of Govt. of Uttar Pradesh, was asked by the JDIT(I&CI) regarding the source of purchase of Motor Vehicles along with documentary evidence/copy of bank account. In this regard, notices were issued to the assessee and on failure of the assessee to comply with the notices, a penalty of Rs.40,400/- under section 272A(2)(c) of the Act was imposed on the assessee, rejecting the contention of the assessee that the relevant details can be seen from the return of income. 3. In appeal before the ld. CIT(A), the ld. CIT(A) confirmed the order of the A.O imposing the penalty of Rs.40,400/- under section 272A(2)(c) of the Act. 4. Before us, the ld. A.R. of the assessee submitted that the Department had called for information under section 133(6) of the Act, to which the assessee filed replies vide letters dated 23/4/2015 and 23/9/2015 furnishing the details sought for by the Department,

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therefore, the penalty levied by the A.O and confirmed by the ld. CIT(A) under section 272A(2)(c) of the Act is uncalled for and liable to be deleted. 5. The ld. D.R., on the other hand, submitted that the assessee failed to comply with the notices issued under section 133(6) of the Act and therefore, the penalty has rightly been levied by the A.O and confirmed by the ld. CIT(A) under section 272A(2)(c) of the Act. 6. Heard. It is an undisputed fact that the assessee, a retired employee of Govt. of Uttar Pradesh, is a regular income tax assessee. For the year under consideration, Department issued notice, dated 19/9/2014 under section 133(6) of the Act calling for certain information from the assessee. The assessee vide reply, dated 23/9/2015 submitted that the assessee is a retired employee of the Govt. of Uttar Pradesh and regular income tax assessee; that after retirement, frequently for 15 days or a month, assessee stayed at his hometown, Khajuha, Distt. Fatehpur to look after the agriculture; that during this period, the aforesaid notice issued by the Department was received and therefore, there was a delay in responding to the said notice; and that the delay in filing of the reply was not intentional but due to the reasons cited above. The assessee vide reply dated 23/4/2015 also furnished his PAN details, details of jurisdiction and submitted that the income tax returns for assessment years 2013-14 and 2014-15 were filed online. The replies filed by the assessee, dated 23/4/2015 and 23/9/2015 are placed at pages 2 & 4 of the paper book. It is an admitted fact that there was delay in responding to the notice issued by the Department under section 133(6) of the Act, but the reason for the delay, as clarified by the assessee vide his replies dated 23/4/2015 and 23/9/2015, is quite reasonable and therefore, only for the reason of delay in filing of the information, the penalty levied under section 272A(2)(c) of the Act is not

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justifiable in the eyes of law. We, therefore, find no justification in imposing the penalty. Accordingly, we order deletion of penalty of Rs.40,400/- levied under section 272A(2)(c) of the Act. 7. In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 03/05/2019.

Sd/- Sd/- [T. S. KAPOOR] [A. D. JAIN] ACCOUNTANT MEMBER VICE PRESIDENT DATED:03/05/2019 JJ:3004 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR By order Assistant Registrar

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