2018 (6) TMI 1281

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....are being disposed of by this common order for the sake of convenience by dealing with ITA No. 7516/Del/2017 (AY 2008-09). 2. The Assessee has raised the following common grounds in all the appeals:- "1. The learned CIT(A) erred in law and on facts in confirming the penalty of Rs. 10,000/- levied u/s 27l(l)(b) of the Act ignoring that there was no noncompliance and the appellant was regularly appearing before the assessing officer and complying with the requirements of the assessing officer thereafter. 2. The learned CIT(A) erred in law and on facts by ignoring that necessary photocopies of-the seized material were given to the appellant in January 2016 whereas the alleged non-compliance in July 2015 was only in respect....

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....tute, modify, delete or amend all or any ground of appeal either before or at the time of hearing." 3. Brief facts are that, a search and seizure operation was carried out on 17.01.2014 on the business/office and residential premises of the assesses group of cases. The residential premise of the assessee was also covered under search. Notice u/s l53A(1) of the I.T. Act, 1961 was issued on 18.09.2014 for filing of return within 30 days of receipt of this notice. But, the assesses failed to comply. Notice u/s 142(1) dated 14.05.2015 was issued for compliance on 26.05.2015, but the assesses again failed to make compliance, but the assesses again failed to make compliance. Later on, notice u/s. 271F of the I. T. Act, 1961 was issued on 10.6.....

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....ntioned at page no. 2 of the penalty order. AO noted that as per provisions of section 271(1)(b) "If the Assessing 0fficer in the course of any proceedings under this Act, is satisfied that any person has failed to comply with a notice under sub-Section of section 142 or subsection (2) of section 143 he may direct that such person shall pay by way of penalty a sum of Rs. 10,000/- for each such failure. In the above circumstances, it became crystal clear that the assessee failed to furnish reply in response to notice u/s 142(1)/143(2) & questionnaire dated 01.07.2015 & 30.10.2015, in spite of a number of opportunities afforded by the Department. AO further observed that the assessee failed to adduce any plausible explanation for non-complian....

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....ivalent to recording a satisfaction which is the post failure and not with the a preposition "if failed to". He further submitted that the order sheets entries do now show issuance of any notice u/s. 274 read with Section 271(1) of the Act or of recording of any such satisfaction. Therefore, he stated that the penalty imposed is liable to be quashed as the issue is squarely covered by the following decisions.: - Hon'ble Karnataka High Court decision in the case of CIT & Ors. Vs. M/s Manjunatha Cotton and Ginnig Factory & Ors. (2013) 359 ITR 565 - Apex Court decision in the case of CIT & Anr. Vs. M/s SSA's Emerald Meadows in CC No. 11485/2016 dated 05.8.2016. 6. On the contrary, Ld. DR relied upon the orders of the autho....