2012 (5) TMI 714

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....enalty levied by the A.O. u/s.271(1)(b) has been confirmed. All the penalty orders, which are subject matter of these appeals are identical. Moreover, the facts are also identical, hence, this batch of appeals are disposed off by this consolidated order for the sake of convenience. The grounds taken by all these assessees are verbatim in all the appeals which are as under: "1. On the facts and in the circumstances of the case, the Ld. CIT (A) erred in confirming the penalty order u/s.271(1)(b) by Learned Dy. Commissioner of Income-tax Central Circle - 38. "2. On the facts and in the circumstances of the case, the Ld. CIT (A) erred in confirming the penalty as there was no default committed by the appellant under the provis....

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....." 2003-04 1,90,000 11 8668/M/2011 "..do.."  2008-09 1,14,164   3. It is pertinent to note here that in some of the assessment years even if these are assessment arising out of the search and seizure action, the returns of income filed by the assessees are accepted. 4. So far as the issue of the levy of the penalty u/s.271(1)(b) is concerned, the A.O. has levied the penalty at ` 10,000/- per assessment year before us for failure to comply to attend the hearing on 20.10.2009. In all these cases the reasons given by the A.O. for the levy of the penalty is verbatim which is as under: 5. The A.O. has observed that during the course of the scrutiny assessment proceedings, Shri Rajesh Shah, C.A., assesse....

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....iance and hence, the A.O. invoked sec.271(1)(b) and levied the penalty. 7. relevant part Section 271(1)(b) reads as under: "271 (1) If the Assessing Officer or the Commissioner (Appeals)] or the Commissioner] in the course of any proceedings under this Act, is satisfied that any person- (a) ...... "(b) has failed to comply with a notice [under sub-section (2) of section 115WD or under sub-section (2) of section 115WE or under sub-section (1) of section 142 or sub-section (2) of section 143 or fails to comply with a direction issued under sub-section (2A) of section 142, or......." 8. So far as the assessment orders in all respect of these assessees are concerned, I find that there is not a single whisper by ....

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....d as under: "An order imposing penalty for failure to carry out a statutory obligation is the result of a quasi-criminal proceeding, and penalty will not ordinarily be imposed unless the party obliged, either acted deliberately in defiance of law or was guilty of conduct contumacious or dishonest, or acted in conscious disregard of its obligation. Penalty will not also be imposed merely because it is lawful to do so. Whether penalty should be imposed for failure to perform a statutory obligation is a matter of discretion of the authority to be exercised judicially and on a consideration of all the relevant circumstances. Even if a minimum penalty is prescribed, the authority competent to impose the penalty will be justified in refu....