1991 (7) TMI 159

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....ity rejected the application on 12th May, 1990. The appellant filed a fresh application on 23rd July, 1990. The appropriate authority issued summons under s. 131 on 22nd Aug., 1990, requiring the appellant to appear on 29th Aug., 1990. However, the appellant appeared before the appropriate authority on 25th Aug., 1990 itself stating that he was scheduled to go abroad on the next day on a business trip and since he would not be able to appear on 29th Aug., 1990, the enquiry should be postponed. However, the appropriate authority persuaded him to answer some questions and detained him for signing the statement. The appellant left the office of the appropriate authority before the statement was typed. On the same day he filed a letter stating ....

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....nd requested that the matter may be kept in abeyance. The petition had been admitted on 15th Oct., 1990 and by order dt 10th Jan., 1991, the High Court quashed the order of the appropriate authority dt. 19th Sept., 1990 refusing grant of no objection certificate. However, the appropriate authority passed the order dt. 25th Feb., 1991 imposing penalty of Rs. 10,000 under s. 272A for refusing to sign the statement. 3. In this appeal it was contended on behalf of the assessee that firstly there was in fact no refusal to sign the statement as only time was sought to consult his brother. Secondly, it was contended that since the main proceeding itself had been quashed, the subsidiary proceeding has lost its foundation. Thirdly, it was contended....

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....willing to sign the statement, the appropriate authority informed him on 30th Nov., 1990 that he may appear and sign the statement. This is sufficient to indicate that the appropriate authority was aware that when the appellant appeared on 25th Aug., 1990 it was before the date fixed for hearing on 29th Aug., 1990 and was only for the purpose of seeking an adjournment. The file contains a note at the bottom of the deposition recording this fact and it is signed by the authorised representative of the appellant. Since the appellant had been persuaded to give a statement on the day when he had actually appeared only to seek an adjournment, it is clear that the appropriate authority had appreciated the reasonableness of the request of the appe....