Case Law Details
ITO Vs M/s Universal Associates (ITAT Ahemedabad) – Considering the facts of the case in the light of the above decisions, we are of the view that the at least the assessee has been able to explain reasonable cause for failure to comply with the provisions of law. The ex-partners have introduced their capital in the assessee firm and on retirement they were given their amount back through bearer cheques and, therefore, the assessee is able to prove that it had reasonable cause for failure to comply with the provisions of law.
The finding of fact given by the learned CIT(A) show that the assessee made payments bona fide and the default was highly technical in nature, therefore, the learned CIT(A) was justified in cancelling the penalty. Consequently, penalty imposed by the AO merely on technical mistake if any committed by the assessee which has not resulted in any loss of revenue, the levy of penalty was harsh and could not have been sustained in law.
IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH – AHMEDABAD
(BEFORE S/SHRI BHAVNESH SAINI, JM AND D. C. AGRAWAL, AM)
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