Tribunal upholds penalty for non-compliance with Income Tax Act notice

The Tribunal upheld the penalty order under Section 272A(2)(c) imposed on the assessee for non-compliance with the notice issued under Section 133(6) of the Income Tax Act. The Tribunal found that the ITO (Intelligence) had the jurisdiction to issue the notice and that there was no reasonable cause for the non-furnishing of information. The appeal by the assessee was dismissed, affirming the validity of the penalty imposed.

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Issues Involved:
1. Jurisdiction of ITO (Intelligence) to issue notice under Section 133(6) of the Income Tax Act.
2. Limitation period for passing the penalty order under Section 272A(2)(c).
3. Reasonable cause for non-furnishing of information under Section 133(6).

Detailed Analysis:

1. Jurisdiction of ITO (Intelligence) to issue notice under Section 133(6) of the Income Tax Act:
The assessee contended that the ITO (Intelligence) did not have the jurisdiction to issue a notice under Section 133(6) of the Income Tax Act. The Tribunal referred to the provisions of Section 133(6) and the amendment introduced by the Finance Act 1995, which allowed the department to call for information even when no proceeding was pending, provided the prior approval of the Director or Commissioner was obtained. The Tribunal cited the Supreme Court's decision in Kathiroor Service Co-op Bank Ltd vs CIT, which upheld the power of the ITO (Intelligence) to issue such notices. The Tribunal concluded that the ITO (Intelligence) had jurisdiction to issue the notice in this case, as the necessary approval from the Director of Income Tax (Intelligence) was obtained.

2. Limitation period for passing the penalty order under Section 272A(2)(c):
The assessee argued that the penalty order was barred by limitation under Section 275(1)(c) of the Income Tax Act. The Tribunal examined Section 275(1)(c), which prescribes the time limit for imposing penalties. The Tribunal found that the penalty proceedings were initiated on 12.08.2014, and the order imposing the penalty was passed on 19.09.2014, well within the prescribed time limit. The Tribunal dismissed the assessee's contention that the limitation period should be reckoned from the date of the notice issued under Section 133(6), stating that the time limit is calculated from the date of initiation of penalty proceedings, i.e., the issuance of notice under Section 274.

3. Reasonable cause for non-furnishing of information under Section 133(6):
The assessee claimed that there was a reasonable cause for not furnishing the information sought under Section 133(6). However, the Tribunal noted that the assessee did not provide any valid reason for the non-compliance. The Tribunal observed that the assessee had failed to respond to many notices and exhibited a lack of cooperation. The Tribunal concluded that there was no reasonable cause as per Section 273B of the Income Tax Act for the non-furnishing of information and upheld the penalty imposed under Section 272A(2)(c).

Conclusion:
The Tribunal, following its previous decision in the case of The Kakoor Service Co-operative Bank Ltd., held that the CIT(A) was justified in upholding the penalty order under Section 272A(2)(c). The appeal filed by the assessee was dismissed, affirming the validity of the penalty imposed for non-compliance with the notice issued under Section 133(6).

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