TaxTMI 
TaxTMI 
2016 (10) TMI 1260
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....e in complying with the information called for finalizing the assessment. 2. In brief, the relevant facts are that the assessee company is a part of Unity Group of cases, wherein a search and seizure action under section 132(1) of the Act was carried out by the Department on 10/2/2012. A notice under section 142(1) of the Act dated 14/09/2013 was issued by the Assessing Officer for all the seven captioned assessment years fixing the date of hearing on 19/10/2013. Since the notice was received by the assessee only on 17/10/2013, assessee sought adjournment and next date of hearing on 29/10/2013 assessee company furnished only a part of the details called for vide notice under section 142(1) of the Act. The Assessing Officer has noted in her order dated 20/12/2013(supra) that in response to the show cause notice issued under section 271(1)(b) of the Act assessee submitted that due to heavy work lead complete details could not be furnished in time. Not being satisfied with the reply of the assessee, the Assessing Officer held that in view of the reluctance of the assessee in filing the details called for, it was a fit case for imposition of penalty under section 271(1)(b) of the Ac....
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....ably rejected by the CIT(A) also. 5. On the other hand, Ld. Departmental Representative defended levy of penalty under section 271(1)(b) of the Act for each of the assessment year by pointing out that the explanation rendered by the assessee for non-compliance was a very generalized explanation to the effect that there was heavy work load. It is pointed out that reasons advanced by the assessee for noncompliance do not justify the deletion of penalty imposed under section 271(1)(b) of the Act. 6. We have carefully considered the rival submissions. Ostensibly, assessee is a part of Unity Group of cases, wherein assessment for the captioned assessment years were carried out after search and seizure action on 10/02/2012. In the instant case, penalty has been levied under section 271(1)(b) of the Act for Rs. 10,000/- for each of the assessment years from 2006-07 to 2012-13, primarily for the reason that assessee did not comply with the requirements contained in the notice issued under section142(1) of the Act dated 14/10/2013. In this context, we find that similar action was taken by the assessing authority in the case of M/s. Unity Infraprojects Ltd. (supra). In the case of M/s.....
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.... 4. Please specify whether any claim u/s. 80IA/IB is made in return this time & in earlier search assessment proceedings. 5. Please submit challans for the payment of taxes in following manner for A.Y. 2006-07 TO 2012-13: Disclosure made Description of issue Date & amount of payment of taxes wrt disclosure made Manner of earning income earned on which disclosure is made Date of notice issued u/s. 153A Date of return filed 6. Explain in details the business undertaken by the company during A.Y. 2006-07 TO 2012-13, including the details of project in following format. On going projects New projects undertaken Projects in pipeline Name of the project Description Address of site Client name Date of start Date of completion Current Status Contract Value 7. Please submit purchase list i....
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....act no. of the party Purpose Opening Balance Addition during the year Reduction during the year Closing balance as on PY ending Purpose 16. In case of Sundry Debtors which are in the nature of regular business, the details in the format as below, during the A.Y. 2006-07 to 2012-13. Sr. No. Name, PAN, Address and contact no. of the party Purpose Opening Balance Addition during the P.Y Reduction during the P.Y. Closing balance as on P.Y. ending 17. Furnish comparative chart of Gross Profit and Net profit ratio for the period from A.Y. 2006-07 to 2012-13 and also indicate the reasons for variations, if any. 18. Furnish comparative chart of figures of Profit and Loss account and Balance Sheet for all the years from A.Y. 2006-07 to 2012-13 and also indicate the reasons for variations, if any. 19. A detailed list of taxable wealth along with computation of net wealth as per provisions of W.T. Act, 1957 from A.Y. 2006-07 to 2-12-13. Please also explain whether the ret....
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....ls filed without verification shall not be accepted. Sd/- Seema Dhankhar, IRS Asst. Commissioner of Income Tax, Central Circle-45, Mumbai" 4.4.2 The provisions of section 271(1)(b) of the Act read as under: "Failure to furnish returns, comply with notices, etc. 271(1) If the [Assessing] Officer or the [Commissioner (Appeals)] [or the Principal Commissioner or 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 subsection (2) of section 143 [or fails to comply with a direction issued under sub-section (2A) of section 142], or (c) has concealed the particulars of his income or [* * *] furnished inaccurate particulars of [such income, or] [(d) has concealed the particulars of the fringe benefits or furnished inaccurate particulars of such fringe benefits,] he may direct that such person shall pay by way of penalty,- (i) [* * *] ....
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....ng the aforesaid details by 10.30 a.m. on 17.10.2013 required by the notice under section 142(1) of the Act, as there was no time available to the assessee to do so. We find that, inspite of this, the assessee vide letter dated 18.10.2013 has filed part details of purchases for A.Y. 2006-07 before the AO. In this factual matrix of the case, we are of the considered opinion that since compliance with the requirements of the notice under section 142(1) of the Act dated 11.10.2013/ questionnaire annexed thereto was not humanly possible, this constituted and established that the assessee had reasonable cause, as envisaged in section 273B r.w.s. 271(1)(b) of the Act for failure to comply with the requirements called for by the notice under section 142(1) dated 11.10.2013 and the questionnaire attached thereto. In this view of the matter, we delete the penalty levied on the assessee under section 271(1)(b) of the Act @ Rs. 10,000/- for each of the assessment years 2006-07 to 2012- 13. It is accordingly ordered." 6.1 Apart from the aforesaid, the Ld. Representative for the assessee also relied upon the decision of our Co-ordinate Bench in the case of Kripa Realtors Ltd., & Oth....