VEENA THEATER Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE appellant, M/s. Veena Theater, Patna, hereinafter referred to as "the assessee", is a partnership firm. For the financial year 1997 -98, it failed to file certificate in Form No. 16A as required under Section 203 of the Income Tax Act, for short "the Act". The assessee filed the certificate on 24 -12 -1998, whereas the last date for its filing was 30 -4 -1998. There being delay of 237 days in filing the certificate in the prescribed form, the assessing officer issued notice to it under Section 272A of the Act, calling upon the assessee to explain as to why penalty be not imposed upon it. The assessee filed its show cause, inter alia, contending that during the period of filing return and issue of certificate, one of the creditors and family members of the ex partner filed criminal case against the existing and the managing partner and in the said criminal case, they were granted anticipatory bail by the Sessions Judge, Patna, by order dated 6 -11 -1998, and this delayed filing the certificate in the prescribed form by 30 -4 -1998. This did not find favour with the assessing officer and he inflicted a penalty of Rs. 29,525 by order dated 24 -2 -1999. The assessee preferred appeal before the Commissioner (Appeals), who reduced the penalty from Rs. 29,525 to Rs. 23,700 by order dated 14 -11 -2000, calculated at the rate of Rs. 100 per day for delay of 237 days.

(2.) THE assessee thereafter filed appeal before the Patna Bench of the Income Tax Appellate Tribunal, hereinafter referred to as "the Tribunal". It was contended before the Tribunal on behalf of the assessee that on account of dispute between a old partner and a creditor, a warrant of arrest was issued against its managing partner and on account thereof, he was unable to perform his day -to -day work. It was further pointed out that the managing partner was granted anticipatory bail by order dated 6 -11 -1998, and only thereafter, the certificate in the prescribed form was filed on 24 -12 -1998.

(3.) IT was also contended before the Tribunal that tax was not only deducted in time but was also deposited in the Government treasury within time. Accordingly, it was submitted that mere non -furnishing of the certificate in the prescribed form would not attract any penalty. This submission also did not find favour with the Tribunal.