TaxTMI 
TaxTMI 
TaxTMI 
2017 (6) TMI 452
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....IT(A) erred in law and on facts in confirming the same as: i . The penal ties have been illegally levied against the provisions of Act as sec. 142(1) does not authorize IT authorities to issue such notice and force the assessee to sign the same. The imposition is in violation of principles of natural justice. ii. The defaults for violation of notices u/s 142(1) dated 2/5/13 and 12/6/13 have been attributed wi thout issuing notices. iii . The penal ty notices u/s 271(1)(b) for one default but same has been levied for 3 defaults. 2. None appeared for the assessee despite notice of hearing. Therefore, the appeals are disposed of exparte qua assessee after hearing Ld. DR and on perusal of the record. 3. Brief facts are that assessments ....
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.... the first objection is concerned, it is noted that appellant had been searched u/s 132 and was well aware of the tax proceedings against him. The appellant was specifically asked in the notices dated 02.05.2013 and 12.06.2013 about the details of foreign bank accounts opened and maintained by the appellant and his relatives. A third notice was issued to him on 11.07.2013, in which the information sought earlier was again sought and in addition the appellant was required to execute the enclosed consent document to get the aforesaid information. No reply was filed by the appellant to any of these notices except seeking adjournment on one or the other pretext. Seeking adjournment is not compliance to the law. Showcause notices were duly issue....
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....ed u/s 142(1). The appellant, having admitted the amount of deposit in the said bank account, continues to plead ignorance about the existence of the said account and details thereof. In such an event, he is bound to execute the consent documents which will enable the Department to get the requisite information from the bank. Having failed to execute this document also, the appellant is in continuous default of noncooperation with the ongoing investigations and non-compliance to these statutory notices. 6.4 So far as the third objection is concerned, penalty is leviable u/s 271(1 )(b) for each failure to comply with a notice u/s 142(1). There is no requirement under the law for escapement of tax or any reference to any tax quantum. Thus, ....
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.... 126 (SC) (b) Estate of Late Rangalal Jajodia V. CIT [1971] 79 ITR 505 (SC) (c) Isha Beevi V. TRO [1975] 101 ITR 449 (SC) 7. Ld. CIT(A) finally confirmed the penalty orders passed by ld. AO by following observations : " In view of the above factual and legal position in the matter, the penal ties imposed u/s 271(1)(b) for refusal, without reasonable cause, to furnish the information sought and to execute the consent letter vide the three notices issued by the revenue, is upheld. These orders shall be read as three separate orders. I also f ind that for refusal to sign / execute a document, penal ty is imposable u/s 271 as well as u/s 272A. Accordingly, the provision shall be read as section 271(1)(b) and al ternatively as Section 272....