2016 (12) TMI 940

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....(b) was imposed on the ground that as per notice u/s 143(2) issued on 07-01-2013 and served on 11-01- 2013 the assessee was requested to attend and submit details on 15-01-2013. But the assessee did not comply with the above. On 15-02-2013 show cause letter was issued and the same was served on 18-02-2013 in response to which the assessee submitted the reply. Thereafter the assessment was framed u/s 143(3) of the I.T. Act. In these facts penalty u/s 271(1)(b) was levied. 4. Before the learned CIT(Appeals) the assessee, inter alia, made the following submissions :- "1. The assessee is a member of group known as "SHREE AGRAWAL COAL GROUP". The search u/s 132 of Income-tax Act, 1961, was conducted on this group including the assessee on 16t....

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....the assessee was prevented by sufficient and reasonable cause as explained above. Copies of letters written to higher authorities are enclosed herewith. Thus assessee was prevented by sufficient cause from producing books of accounts and details before the AO in this case. As a result, the AO did not verify the books of account, bills, vouchers and other documents. In appeal before CIT(A) the assessee, requested him to allow assessee to submit details which assessee was prevented by reasonable cause from filing with AO. CIT(A) accepted the request of assessee and allowed it to file fresh evidence under rule 46A of Income-tax Rules, 1962. Accordingly the quantum appeals were decided by CIT(A) on merits." 5. Assessee also referred to decisi....

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....ere passed u/s 143(3) since the assessee did not give any details during assessment proceedings and the AO had to pass the orders without the details on record. It is held that the assessee has not complied with the notices of the AO issued by him u/s 143(2). In the circumstances, the penalty levied by him of Rs. 10,000/- for each of the assessment years from AY 2005-06 to 2011-12 is upheld." 6. Against the above order, the assessee is in appeal before the ITAT. 7. I have heard both the counsel and perused the records. At the outset learned counsel of the assessee submitted that the assessee's counsel and staff did go to the AO on the specified date but the AO refused to admit their entrance. Learned counsel submitted that the assess....

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....bsequent show cause notice and assessment was framed u/s 143(3) of the I.T. Act. This has also to be looked into on the anvil of assessee's submission that the AO has refused the assessee recording of attendance the specified date and for which the assessee has petitioned to higher authorities. 10. In these circumstances, in my opinion, there was a reasonable cause for non attendance of the assessee. Hence on the anvil of section 273B penalty is not leviable. Again the issue is squarely covered by the decision of ITAT, Delhi Bench in the case of Akhil Bhariya Prathmik Shikshak Sangh Bhawan Trust vs. Asstt. Director of Income-tax (supra). I may gainfully refer to the concluding portion of the Tribunal's order as under:- ".3 We hav....