Vijaya Hospitality & Resorts Ltd v Addl CIT

Case Laws Analysis
REFERRED Lakshadweep Development Corporation Ltd. v. Addl. CIT (TDS) & Anr. 2019 TaxPub(DT) 1626 (Ker-HC)
REFERRED Classic Concepts Home India (P.) Ltd v. CIT 2015 TaxPub(DT) 2535 (Ker-HC)

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The Tax Publishers2022 TaxPub(DT) 4394 (Coch-Trib) IN THE ITAT COCHIN BENCH GEORGE GEORGE K, JM AND SHRI LAXMI PRASAD SAHU, AM Vijaya Hospitality & Resorts Ltd. v. Addl. CIT ITA No. 96/Coch/2015 24 June, 2022 Appellant by : Thomas Joseph, CA Respondent by : J.M. Jamunna Devi, Sr.DR ORDER *George George K, J.M.* This appeal at the instance of the assessee is directed against Commissioner (Appeals)s Order, dated 24-11-2014. The relevant assessment year is 2010-2011. 2. There is a delay of 1 day in filing this appeal. The assessee has filed a petition for condonation of delay and an affidavit of the Managing Director of the assessee-company stating therein the reasons for belated filing of this appeal. On perusal of the reasons stated for belated filing of the appeal, we noticed that no latches can be attributed to the assessee and there is sufficient cause in filing this appeal belatedly. Accordingly, we condone the delay in filing this appeal and proceed to dispose of this appeal on merits. 3. The solitary issue raised is whether the Commissioner (Appeals)is justified in confirming the assessing officers order, wherein penalty has been imposed under section 271C of the Income Tax Act amounting to Rs.9,12,060. 4. The brief facts of the case are as follows: The assessee is a company engaged in the business of running a resort, namely, `The Elephant Court at Thekkady. For the assessment year 2010-2011, the assessee had deducted TDS for an amount of Rs.8,12,839. The assessee did not remit the TDS on the due date and the entire TDS along with interest was remitted on 30.04.2011 amounting to Rs.9,12,069. The Additional CIT issued notice show causing the assessee why the penalty under section 271C of the Income Tax Act should not be imposed. The assessee in reply to the notice submitted that due to acute financial problem and shortage of funds, the TDS could not be remitted on the due date. It was further submitted that majority of the TDS amount is with reference to Directors remuneration for which no payments were made, but only there was book entry. Therefore, it was submitted that there was a reasonable cause envisaged under section 273B of the Income Tax Act and requested that penalty may not be imposed under section 271C of the Income Tax Act. 5. However, the Addl.CIT, TDS, took a view that provisions of section 273B of the Income Tax Act is not applicable and after referring the judgment of the Honble jurisdictional High Court in the case of US Technology International Limited, reported in (2010) 195 taxman 323 (Ker.) imposed penalty of Rs.9,12,060. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2022 TaxPub(DT) 4394 (Coch-Trib)

IN THE ITAT COCHIN BENCH

GEORGE GEORGE K, JM AND SHRI LAXMI PRASAD SAHU, AM

Vijaya Hospitality & Resorts Ltd. v. Addl. CIT

ITA No. 96/Coch/2015

24 June, 2022

Appellant by : Thomas Joseph, CA

Respondent by : J.M. Jamunna Devi, Sr.DR

ORDER

George George K, J.M.

This appeal at the instance of the assessee is directed against Commissioner (Appeals)s Order, dated 24-11-2014. The relevant assessment year is 2010-2011.

2. There is a delay of 1 day in filing this appeal. The assessee has filed a petition for condonation of delay and an affidavit of the Managing Director of the assessee-company stating therein the reasons for belated filing of this appeal. On perusal of the reasons stated for belated filing of the appeal, we noticed that no latches can be attributed to the assessee and there is sufficient cause in filing this appeal belatedly. Accordingly, we condone the delay in filing this appeal and proceed to dispose of this appeal on merits.

3. The solitary issue raised is whether the Commissioner (Appeals)is justified in confirming the assessing officers order, wherein penalty has been imposed under section 271C of the Income Tax Act amounting to Rs.9,12,060.

4. The brief facts of the case are as follows:

The assessee is a company engaged in the business of running a resort, namely, `The Elephant Court at Thekkady. For the assessment year 2010-2011, the assessee had deducted TDS for an amount of Rs.8,12,839. The assessee did not remit the TDS on the due date and the entire TDS along with interest was remitted on 30.04.2011 amounting to Rs.9,12,069. The Additional CIT issued notice show causing the assessee why the penalty under section 271C of the Income Tax Act should not be imposed. The assessee in reply to the notice submitted that due to acute financial problem and shortage of funds, the TDS could not be remitted on the due date. It was further submitted that majority of the TDS amount is with reference to Directors remuneration for which no payments were made, but only there was book entry. Therefore, it was submitted that there was a reasonable cause envisaged under section 273B of the Income Tax Act and requested that penalty may not be imposed under section 271C of the Income Tax Act.

5. However, the Addl.CIT, TDS, took a view that provisions of section 273B of the Income Tax Act is not applicable and after referring the judgment of the Honble jurisdictional High Court in the case of US Technology International Limited, reported in (2010) 195 taxman 323 (Ker.) imposed penalty of Rs.9,12,060.