TaxTMI 
TaxTMI 
2015 (6) TMI 347
X X X X Extracts X X X X
X X X X Extracts X X X X
....d circumstances of the case learned CIT(A) erred in sustaining the penalty levied by the AO [ITO ward 2(3), Jalgaon] u/s. 271(1)(c) for concealment of income without appreciating the explanations and submissions of the assessee. 2. Under the facts and circumstances of the case learned CIT(A) erred in sustaining the penalty levied by the AO u/s. 271(1)(c) without appreciating the reasonable causes for late filing of return of income as explained & substantiated by the assessee. 2. The facts which are revealed from the record as under. The assessee is Agricultural Produce Market Committee constituted under "The Agricultural Produce Marketing (Regulation) Act, 1963". In both these assessment years, the assessee did not file the returns o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ug. 2008 against the APMC. It was believed that provisions of Tax Audit are not applicable to the assessee. Further Govt. audit for period ending 30.9.07 and 31.3.08 was completed on 14.7.09. Meanwhile several representations were made to the Govt. to include the name of Marketing Board u/s 10(20). The application for registration u/s 12AA was rejected by CIT on the basis of amended definition of Charitable purpose. The assessment for A.Y. 2008-09 was completed u/s 143(3) r.w.s. 148 the taxes due within were paid off under protest immediately on receipt of demand notice. Under the facts and circumstances of the case the assessee were stated to be prevented by reasonable cause to file the return of income within statutory limits. To summa....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... in format required by I. T. Act (i.e. April to March), complete and correct in all respects. f. Moreover, Govt. audit for period ending on 30.9.2007 and 31.3.2008 was completed on 14.7.2009 naturally resulting in to delay in finalizing tax audit after due dates, which was beyond our control. Your Honour will certainly appreciate that the issue of allowability of deduction u/s 10(20) or otherwise to the APMCs was a nationwide issue and hundreds of APMCs were under litigation on the issue. This shows that the issue was certainly debatable one and accordingly, mere delay in filing ROI with audit report due to various reasons as discussed above, cannot be treated at par with intention to evade the taxes and concealment of income. W....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ty about the taxability of APMCs'. Ultimately, as a result of the collective efforts by the state Agri. Marketing Boards & committees all over INDIA, Finance Act, 2008 came up with new section 10(26AAB) which again exempted Agri. Boards/ Market Committees from payment of income Tax on its total income w.e.f. A.Y. 2009-10. This proves the intention of the legislature not to tax such entities which are working for the poor farmers & don't have any profit motive. e. Further, up to 30.09.2007 our financial year was from October to September as per rules of our apex body. It took time to carefully convert the consolidated financial statements of our institution with its branches (audited by Govt.) in format required by LT. Act (Le. Ap....
X X X X Extracts X X X X
X X X X Extracts X X X X
....We, therefore, in the light of the above mentioned facts humbly submit that the delay in filing returns of income & payment of taxes was due to the unavoidable circumstances. We urge that the delay was not occasioned deliberately, or on account of culpable negligence, or on account of malafides and accordingly request Your Honour to delete the penalty u/s 271(l)(c) & oblige." 4. Before the CIT(A) the assessee also relied on the decision of the ITAT, Chandigarh Bench in the case of Agriculture Produce Market Committee Vs. DCIT, ITA Nos. 1228 & 1229/Chd/2010. The CIT(A) was not impressed with the plea of the assessee and he confirmed the penalty. Now, the assessee is in appeal before us. We have heard the Ld. DR. None was present for the a....