Shikari Viswanatham, Hyderabad v. ITO, Karimnagar

ITA 332/HYD/2010 | 2003-2004
Pronouncement Date: 21-05-2010 | Result: Dismissed

Appeal Details

RSA Number 33222514 RSA 2010
Assessee PAN AVKPS7019N
Bench Hyderabad
Appeal Number ITA 332/HYD/2010
Duration Of Justice 2 month(s) 19 day(s)
Appellant Shikari Viswanatham, Hyderabad
Respondent ITO, Karimnagar
Appeal Type Income Tax Appeal
Pronouncement Date 21-05-2010
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 21-05-2010
Date Of Final Hearing 12-05-2010
Next Hearing Date 12-05-2010
Assessment Year 2003-2004
Appeal Filed On 03-03-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A HYDERABAD BEFORE SHRI G.C. GUPTA VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO.330 TO 334 /HYD/2010 ASSESSMENT YEARS : 2001-02 2002-03 2003-04 2004- 05 & 2005-06 SHRI SHIKARI VISWANATHAM KARIMNAGAR. (AVKPS 7019 N) VS ITO WARD 4 KARIMNAGAR (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAVI SESHAGIRI RAO RESPONDENT BY : SHRI H. PHANI RAJU DR O R D E R PER CHANDRA POOJARI ACCOUNTANT MEMBER: ALL THESE FIVE APPEALS PREFERRED BY THE ASSESSEE ARE DIRECTED AGAINST THE COMMON ORDER PASSED BY THE CIT(A)-III HYD ERABAD DATED 31.12.2009 AND PERTAINS TO THE ASSESSMENT YEARS 2001-02 2002-03 2003-04 2004-05 & 2005-06. SINCE COMMON ISSUES ARE INV OLVED IN THESE APPEALS THEY ARE CLUBBED TOGETHER HEARD TOGETHE R AND DISPOSED OFF VIDE THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE ASSESSEE RAISED COMMON GROUNDS IN ALL ITS APPEALS ARE THAT THE CIT(A) ERRED IN CONFIRMING LEVY OF PENALTY U/S 221 (1) OF THE IT ACT AT RS.25 000/- WITHOUT CONSIDERING THE SUBMISSION MAD E BY THE ASSESSEE. ITA NOS.330 TO 334/HYD/2010 SHRI SHIKARI VISWANATHAM KARIMNAGAR 2 2 3. BRIEF FACTS OF THE CASE ARE THAT FOR THE ASSESSMENT YE ARS 2001-02 2002-03 2003-04 2004-05 AND 2005-06 THE ASSESSMENTS WERE COMPLETED U/S 143(3) R.W.S. 147 OF THE ACT ON 2 8.12.2007 RAISING DEMANDS OF RS.88 09 812/- RS.72 90 130/- RS.82 47 463 RS.90 24 676 AND RS.1 79 90 552 RESPECTIVELY. THE DEMA ND NOTICES FOR ALL THE ASSESSMENT YEARS SERE SERVED ON 1.1.2008. THE ASSE SSEE WAS REQUIRED TO MAKE THE PAYMENT OF THE DEMAND BY 31.1. 2008. HOWEVER IT HAS NOT MADE ANY PAYMENT TOWARDS THE TAX DUES WITH IN 30 DAYS OF THE SERVICE OF THE SAID DEMAND NOTICES. LATER AFTER PASSING RECTIFICATION ORDER U/S 154 OF THE ACT THE ASSESSING OFFICER REVISED TH E DEMAND PAYABLE BY THE ASSESSEE FOR DIFFERENT ASSESSMENT YEARS AS UND ER: ASSESSMENT YEAR REVISED DEMAND IN RS. 2001-02 76 84 863 2002-03 56 35 000 2003-04 55 80 828 2004-05 27 87 027 2005-06 1 18 08 580 3.1. SINCE THE ASSESSEE HAS NOT MADE ANY PAYMENT TOWARD S TAX DUES FOR DIFFERENT ASSESSMENT YEARS THE ASSESSING OFFICER ISSUE D SHOW CAUSE NOTICES U/S 221(1) OF THE ACT ON 3/7/2009 REQUESTING HIM TO ITA NOS.330 TO 334/HYD/2010 SHRI SHIKARI VISWANATHAM KARIMNAGAR 3 3 FURNISH THE DETAILS PAYMENT OF TAX MADE FOR DIFFERENT ASSESSMENT YEARS OR TO EXPLAIN AS TO WHY PENALTY UNDER THAT SECTION SHO ULD NOT BE LEVIED FOR NON PAYMENT OF TAX DUES WITHIN THE PRESCRIBED TIME PERIOD. AS NOTED BY THE ASSESSING OFFICER ALL THE NOTICES FOR DIFFE RENT ASSESSMENT YEARS WERE SERVED ON HIM ON 3.7.2009. THE ASSESSEE WAS RE QUIRED TO FURNISH REPLY/EXPLANATION ON 9.7.2009. HOWEVER NO R EPLY/EXPLANATION WAS FURNISHED BY THE ASSESSEE IN RESPONSE TO SUCH NOTICES ISSUE D BY THE ASSESSING OFFICER. UNDER THIS CIRCUMSTANCES AFTER OBSERVING THAT THE ASSESSEE HAS DEFAULTED IN MAKING PAYMENT OF TAX DUES WITH OUT PROPER AUTHORIZATION THE ASSESSING OFFICER HELD THAT HE IS LIAB LE FOR PENALTY U/S 221(1) OF THE ACT. AFTER CONSIDERING THE CIRCUMSTANCES OF THE CASE HE LEVIED PENALTY OF RS.25 000/- EACH U/S 221(1) FOR DEFA ULT OF ASSESSEE IN NOT MAKING PAYMENT OF TAX FOR ALL THE FIVE ASSESSMENT Y EARS. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. AS NOTED BY THE ASSESSING OFFICER A FTER PASSING OF THE ASSESSMENT ORDERS FOR DIFFERENT ASSESSMENT YEARS HE HAS P ASSED RECTIFICATION ORDERS U/S 154 OF THE ACT REVISING THE TAX DEMAND FOR ALL THE ASSESSMENT YEARS. HOWEVER SINCE THE ASSESSEE HAS NOT MADE ANY PAYMENT AGAINST SUCH TAX DEMAND EVEN AFTER EXPIRY OF SUFFICIENT TIME HE HAS ISSUED SHOW CAUSE NOTICES U/S 221 OF THE ACT ON 3/7/20 09 REQUIRING THE ASSESSEE TO FURNISH DETAILS OF PAYMENTS TO WARDS TAX DUES ITA NOS.330 TO 334/HYD/2010 SHRI SHIKARI VISWANATHAM KARIMNAGAR 4 4 WITHIN THE PRESCRIBED TIME PENALTY UNDER THAT SECTION SHOULD NOT BE LEVIED ON HIM. HOWEVER IN RESPONSE TO SUCH SHOW CAUSE NOT ICES ISSUED BY HIM FOR DIFFERENT ASSESSMENT YEARS POSTING THE CASE FOR HEARING ON 9/7/2009 THE ASSESSEE HAS NOT FURNISHED ANY REPLY/EXPLA NATION. THESE FACTS ARE NOT DISPUTED BY THE ASSESSEE. IT HAS SUBMITTED TH AT THE ASSESSEE HAS REQUESTED THE CONCERNED AUTHORITIES FOR STAY OF DEMAND. HOWEVER IT HAS NOT BEEN EXPLAINED AS BEFORE WHOM THE ASSESSEE HAS MOVED SUCH PETITIONS REQUESTING FOR STAY OF DEMAND. FUR THER IN THE ABSENCE OF ANY COPIES OF SUCH PETITIONS FURNISHED BEFORE SUCH CONTENTION OF THE ASSESSEE CANNOT BE ACCEPTED. IT HAS FU RTHER SUBMITTED THAT AT THE TIME THE ASSESSEE WAS NOT WELL AND THEREFORE HE COULD NOT FURNISH REPLY/EXPLANATION BEFORE THE ASSESSING OFFICER ON 9.7.2009. HOWEVER IN ABSENCE OF ANY SUPPORTING EVIDENCE IN THAT R EGARD SUCH CONTENTION OF THE ASSESSEE REGARDING HIS ILLNESS AT THAT TI ME I.E. ON 9/7/2007 CANNOT BE ACCEPTED. IN FACT THERE WAS NO REASO N ON THE PART OF THE ASSESSEE IN NOT COMPLYING WITH THE SAID SHOW CAUSE NO TICES ISSUED BY THE ASSESSING OFFICER FIXING HIS CASE ON 9/7/2009 FOR FURNISHING DESIRED DETAILS AND ALSO EXPLANATION. FOR T HE DEFAULT ON PART OF THE ASSESSEE IN NOT MAKING PAYMENT OF TAX AGAINST THE HUGE COLLECTIBLE DEMAND FOR ALL THE ASSESSMENT YEAS AND ALSO FOR NOT COMPLYING WITH THE SAID NOTICES U/S 221(1) OF THE ACT ISS UED TO HIM FOR ALL THOSE ASSESSMENT YEARS THE ASSESSING OFFICER WAS JUSTIFIED IN LEVYING ITA NOS.330 TO 334/HYD/2010 SHRI SHIKARI VISWANATHAM KARIMNAGAR 5 5 THE IMPUGNED PENALTY OF RS.25 000 FOR EACH ASSESSMENT YEA R. THUS SUCH PENALTY LEVIED BY ASSESSING OFFICER U/S 221(1) OF THE ACT FOR ALL THE FIVE ASSESSMENT YEARS FROM 2001-02 TO 2005-06 ARE TO BE UPHELD. RELIANCE IN SUPPORT OF THIS PENALTY IS PLACED ON THE DECI SION IN THE CASE OF CIT VS. HYDRO FLEX EQUIPMENTS LTD. 282 ITR 418 (BO M.). ACCORDINGLY WE DO NOT FIND ANY INFIRMITY IN THE ORDE R OF THE CIT(A) AND THE SAME IS CONFIRMED. 5. IN THE RESULT ALL THE APPEALS OF THE ASSESSEE ARE D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT 21. 5.2010 SD/- SD/- G.C. GUPTA CHANDRA POOJARI VICE PRESIDENT ACCOUNTANT MEMBER DATED THE MAY 21 ST 2010 COPY FORWARDED TO: 1. SHRI SHIKARI VISWANATHAM KARIMNAGAR C/O SHRI S. RAMA RAO ADVOCATE 102 SHRIYAS ELEGANCE DOOR NO.3-6-643 ST. NO.9 HIMAYATNAGAR HYDERABAD 2. ITO WARD 4 KARIMNAGAR 3. CIT(A)-II HYDERABAD. 4. CIT HYDERABAD 5. THE D.R. ITAT HYDERABAD. NP