2016 (7) TMI 825

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....Act for the defaults of not complying with notices for Assessment Year 2011-12. Since all these appeals pertain to same group and raise identical issues; therefore, these were heard together and are being disposed of by this consolidated order for the sake of convenience. 2. At the time of hearing, the ld. Counsel for the assessee contends in response to corresponding show cause notices, ld. Assessing Officer was informed that all the cases of Pradip Overseas Group were fixed on the same date and since it was not possible for the assessee and as also for the Assessing Officer to take up all cases at a time, the assessee's representative requested to the Assessing Officer that individual cases may be taken up first and thereafter the case....

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....vs. ITO in ITA No.2544/Ahd/2011, dated 10.03.2016 2.3 It is further submitted that in view of the clear understanding that all group cases being connected, the individual cases may be taken up first and thereafter the cases of the companies and firms may be taken up, there was a reasonable cause for the alleged non-compliance of the notice issued on 17.10.2012, and therefore also, penalty could not have been levied in pursuant to the provisions of Section 273B of the Act. 3. Ld. Departmental Representative, on the other hand vehemently contends that the Assessing Officer was right in imposing the penalty in question as the assessee failed to comply with the notices issued by the Assessing Officer. No such understanding as claimed by t....

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....ssessee. From the date of search till issue of notice u/s 142(1), there is substantial & sizeable gap of around two years and thus, the assessee ought to have submitted the details called for. However, for reasons best known to the assessee, it opted not to comply with the terms of notice u/s 142(1) of the Act. Therefore, the assessee has no reasonable cause to offer for the inordinate delay in complying to the terms of statutory notice issued u/s 142(1) of the Act. Accordingly, the undersigned is satisfied that this is a fit case for levy of penalty under section 271(1)(b) of the Income tax Act, 1961." Observations of ld. CIT(A) "5.1 The reliance of the AR of the appellant on the decision of the Ahmedabad Tribunal in the case of Swar....