TaxTMI 
TaxTMI 
2017 (12) TMI 349
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....sing out of the identical set of facts, therefore, the same were being heard together and are being disposed off by way of this consolidated order. 3. The assessee is mainly aggrieved by the levy of penalty of Rs. 20,000/- u/s 271(1)(b) for all the impugned assessment years which was on account of failure to comply with the statutory notices/ date fixed for hearing on 30.11.2012 and 28.12.2012. 4. The brief facts qua the levy of impugned penalty are that the assessee is an individual working with the MDLR group of companies and was also director and share holder in some of the group companies. A search and seizure action u/s 132(1) was conducted at various premises of MDLR group and also at the residential premises of the assessee in Janu....
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....belatedly on some occasion duly submitted all the replies before the Assessing Officer during the course of the assessment proceedings of the assessee. * lastly, it was submitted that the main controlling person, Shri Gopal Kumar Goyal who was looking after the entire matter was detained in judicial custody since August, 2012 and was there for more than 2 years. Since, Shri Gopal Kumar Goyal was entrusted with all the decisions and was aware of thetax matters and documents; therefore, there was delay in collecting information and consequently making certain compliances. Thus, it was pleaded that there was a reasonable cause for delay in submitting the replies or non-compliance on the appointed date. 5. However, the ld. Assessing Officer....
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....ssessee, carry out necessary verifications, afford opportunity to each of them in terms of the principle of natural justice, and thereafter pass the assessment order before the time barring date. Thus, the reasons cited in the written submission are rejected. 8.4. Filing of several writ petitions before the Hon'ble High Court, which in turn required substantialpaperwork, was a personal and private decision of the assessees of the group and can hardlyconstitute a justification for non-compliance of the statutory notices in the case of the appellant. Moreover, if the 'circumstances', cited as 'reasonable cause' for non-compliance of statutory notices, did not come in the way of filing the writ petitions, these could not....
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.... pointed out that during the course of the assessment proceedings various submissions were filed which have not been properly considered. The detail of replies filed on various cases including that of assessee sent through registered post or dak has been illustrated at pages 14 to 16of the paper book. Apart from that, he submitted that in the first appeal the relief has already been granted to the assessee and income has been computed at "nil" and such appellate orders have attained finality. The copy of the assessment ordersgiving effect to the first appellate order computing the income at 'nil' incomeright from assessment years 2002-03 to 2008-09 has been placed in the paper book. Thus, he submitted that no penalty can be levied u/s 271(1....
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....se of Shri Gopal Kumar Goyal who was in judicial custody. This contention raised by the assessee before the Ld. Assessing Officer, in the course of the assessment proceedings have not been accepted and he proceeded to make the assessment u/s 144 read with section 153A. However on perusal of various replies filed by the assessee before the Assessing Officer during the assessment proceedings, it is seen that most of the compliances have been made through replies/letters sent to the Assessing Officer either by filing in the dak or through registered/speed post. This is further corroborated by details of replies filed in various group cases as referred to by Ld. Counsel before us. Ostensibly there may be a case of delay in compliance or filing ....
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....sonable cause falling within the scope and ambit of section 273B and accordingly, we are of the considered opinion that failure to comply with certain notices on a particular date was due to reasonable cause as highlighted by the assessee not only during the course of the assessment proceedings but also before the Assessing Officer and Learned CIT(Appeals) in the impugned penalty proceedings and hence penalty cannot be levied in such circumstances. 10. Apart from that, one important fact brought on record is that, the demand in the quantum proceedings has been reduced to "nil", after giving effect to the first appellate order and there has been no substantive non-compliance either during the course of the assessment proceedings or during t....