TaxTMI 
TaxTMI 
2022 (7) TMI 1258
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....section 148 were issued on 17.10.2018 to reopen the assessment for the assessment years 2014-15 to 2016-17. The Assessing Officer issued notices under section 142(1) for all the four years but the assessee did not file the return of income in response to notice under section 148 and also did not furnish the requisite details / information as required vide notice under section 142(1). The Assessing Officer then issued show cause notice under section 274 r.w.s. 271(1)(b) of the Income Tax Act on 16.1.2019. Thereafter, the Assessing Officer passed the penalty orders under section 271(1)(b) on 30.1.2019 for all four assessment years whereby the penalty of Rs. 10,000/- was imposed for each assessment year on account of default / non-compliance of notice issued under section 142(1) of the Income Tax Act. The assessee challenged the levy of penalty by filing the appeal before the CIT(A), but could not succeed. The assessee has raised the common grounds in these appeals as levy of penalty under section 271(1)(b) for the assessment years 2014-15 to 2016- 17 is based on identical facts and circumstances being reopened assessment therefore, for the purpose of recording the facts, the appeal f....
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....ournment as vide his letter dated 18/02/2019 (date fixed) for short adjournment as his cases are fixed at Lucknow but even request of CA was turned down by the assessing officer and ultimately he imposed the penalty which action is unjustified an unfair hence the penalty is unwarranted. 6. That in any view of the matter without providing the copies of seized materials as sought vide the letter dated 29/10/2018 and 04/01/2019 a complaint under section 276CC of the IT Act was also lodged by alleging non filing of return in compliance to notice u/s 148 of the IT Act but the Hon'ble Allahabad High Court stayed the prosecution proceeding which facts itself show the arbitrariness action on the part of two lower authorities imposing and confirming the penalty hence such actions are not legal therefore the penalty is unwarranted and therefore liable to be deleted. 7. That in any view of the matter the assessee reserves his right to take any fresh ground before the hearing of appeal." 3. The learned AR of the assessee has submitted that the Assessing Officer issued notice under section 148 on 17.10.2018 asking the assessee to file the return of income within 30 days....
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....he return of income as well as the requisite details and information sought by the Assessing Officer, vide notice under section 142(1) of the Act. Thus, the CIT(A) has not appreciated the facts and circumstances under which the assessment was framed and the penalty was levied by the Assessing Officer under section 271(1)(b) of the Income Tax Act and confirmed the levy of penalty while passing the impugned order. He has relied upon the decision of Hon'ble Bombay High Court in the case of Mahavir Manakchand Bhansali vs. Commissioner of Income Tax 396 ITR 226 (Bom) and submitted that the Hon'ble High Court has held that the interest for delay in filing the return of income has to be computed after excluding the period from the date the inspection was asked for by the assessee till inspection was given. The Hon'ble High Court has thus held that the Department is not justified in charging the interest for the delay attributable in not supplying the copies of the accounts and other records seized by the Department during the search. He has then relied upon the decision of Hon'ble jurisdiction High Court in the case of Paramjeet Singh vs. Commissioner of Income Tax, Allaha....
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....ed and served upon assessee online through Income Tax Business Application (ITBA) and by post duly according to provisions of Income Tax Act-1961. Due to non-compliance, a reminder was issued online on 15-11-2018. (communication authenticated u/s 282A and served u/s 282 & RULE-127 of IT. Act-1961) Due to further non-compliance another reminder was issued online on 04-12- 2018. (communication authenticated u/s 282A and served u/s 282 & RULE-127 of IT. Act-1961) Due to further non-compliance another reminder was issued online and by post on 28-12-2018. (communication authenticated u/s 282A and served u/s 282 & RULE-127 of I.T. Act-1961) Due to further non-compliance a show cause notice u/s 274 r.w.s. 271(1)(b) was issued online and by post on 16.01.2019. (communication authenticated u/s 282A and served u/s 282 & RULE-127 OF I.T. Act-1961). No reply has been submitted. Till date assesse has not complied with notice u/s 142(1) despite being given sufficient time and opportunity of being heard. Hence a penalty of Rs 10,000 (ten thousand rupees only) is imposed on assessee under section 271(l)(b) of the Income Tax Act-1961. Notice of ....
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....ad Dt. 29.10.2018 Sir, Re-Request for supply of documents impounded during the course of survey In reference to above I beg to submit that certain documents / records including my audited statement of accounts etc. were impounded during the course of survey at my business premises on 11.09.2018. The aforesaid documents / records are urgently required for compilation of my income tax returns for the year relevant to the assessment year 2018-19. 2. It is therefore requested to your goodself may kindly supply the copy of aforesaid documents / records." 7. The Assessing Officer instead of supplying the copies of the impounded materials / documents which includes the Audited statements of accounts and also ignoring the fact that the assessee was having time upto 16.11.2018 to file the return of income issued notice under section 142(1) on 30.10.2018. The copy of the said notice is placed at page no. 2 of the paper book of the Department whereby the Assessing Officer asked the assessee to furnish on or before 14.11.2018 accounts and information specified in the annexure to the said notice. Once, the assessee has requested the Assessing Offi....
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....th January, 2019 whereby the assessee was asked to explain till 24th January, 2019, why penalty under section 271(1)(b) should not be levied. The assessee replied to the said show cause notice vide letter dated 30.1.2019 which is not in dispute as the Department has also filed the copies of these replies in the paper book at page nos. 21 to 24. The Assessing Officer has made a note on the reply of the assessee. "This reply was received after the penalty order under section 271(1)(b) was passed." Thus, it is clear that the Assessing Officer has not waited for the reply of the assessee and passed the penalty order within less than two weeks of the issuance of the show cause notice under section 271(1)(b). It appears that the Assessing Officer was in the tearing hurry to impose the penalty under section 271(1)(b) of the Income Tax Act without providing a sufficient opportunity to the assessee to present her case particularly when the time to frame the assessment was available with the Assessing Officer upto 31st December, 2019 and levy the penalty u/s 271(1)(b) upto 31/07/2019. Thus, there was no reason for the Assessing Officer to ignore the reply filed by the assessee and passed the....
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....filed for the aforesaid assessment years are as under: A.Y. Date of filing return u/s 139(1) Income Declared Documents enclosed with the return 2014-15 24.11.2014 Rs. 41,79,180/- Audit report 2015-16 29.09.2015 Rs. 52,39,450/- Audit report 2016-17 17.10.2016 Rs. 59,48,360/- Audit report 2017-18 03.11.2017 Rs. 71,65,970/- Audit report That in this way from assessee's side full compliances for the said years were also made as in the past. The said returns were processed and concluded. In the present case a survey u/s 133A of the IT act was conducted on 11.09.2018 at the assessee's business premises and in the course of survey certain papers were round and seized and those papers are neither in assessee's hand writing nor the same bear anybody's signature. Even from perusal of the said papers no final conclusion can be drawn nor the assessee had any such paper earlier nor the same are related with the assessee and the assessee is unaware that who and when such papers were prepared and for what purpose. The said seized papers also does not depict any conclusion of any figures or final accounts nor any ....
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....e above mentioned assessment years. Sir, even prosecution proceeding u/s 276CC of the IT Act was initiated but the Hon'ble Allahabad High Court stayed the proceedings. So kindly consider conduct and records of the assessee and also actions of the department which are haste and casual in the eyes of laws. The assessee engaged CA also to look after assessee's interest and tax affair who made compliances of the notices, therefore allegation of non -compliance as made by the Assessing Officer is not correct. In this regard affidavit of the assessee confirming the facts is enclosed. That from the assessee's side best possible compliances on the basis of available details and documents available with the assessee were made but since the assessing officer failed in providing photo copies of certain documents as mentioned above ignoring the repeated requests of the assessee, therefore the assessee was helpless in furnishing the return u/s 148 of the IT Act though the original returns u/s 139(1) of the IT Act were already filed and are available on record and the assessing officer has also accepted this fact in first line of the assessment orders. More so certain notice....
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....nths from the date of issuing notice under section 148 without giving the assessee proper opportunity and supplying the copies of the impounded material. It is also pointed out that the Assessing Officer failed in providing copies of certain documents as mentioned by the assessee in the request filed before the Assessing Officer. The CIT(A) though reproduced the submissions of the assessee in the impugned order however, not appreciated this crucial fact that the assessee has explained the reasonable cause for failure to comply with the notice issued under section 142(1) by way of making the repeated requests to the Assessing Officer to supply the copies of the impounded material. The Assessing Officer has completely ignored the request of the assessee then the question of paying the copying charges or specifying the documents does not arise. The contention of Ld. DR on this point is devoid of merits. Therefore, the case of the assessee falls in the ambit of section 273B of the Income Tax Act, as the assessee has proved that there was a reasonable cause for failure to comply with the notice issued under section 142(1) of the Act. The decisions relied upon by the learned DR would not....
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.... 5. That in any view of the matter in compliance to show cause notice dated 07/02/2019 the appellant's CA made a request to assessing officer for a short adjournment as vide his letter dated 18/02/2019 (date fixed) for short adjournment as his cases are fixed at Lucknow but even request of CA was turned down by the assessing officer and ultimately he imposed the penalty which action is unjustified an unfair hence the penalty is unwarranted. 6. That in any view of the matter without providing the copies of seized materials as sought vide the letter dated 29/10/2018 and 04/01/2019 a complaint under section 276CC of the IT Act was also lodged by alleging non filing of return in compliance to notice u/s 148 of the IT Act but the Hon'ble Allahabad High Court stayed the prosecution proceeding which facts itself show the arbitrariness action on the part of two lower authorities imposing and confirming the penalty hence such actions are not legal therefore the penalty is unwarranted and therefore liable to be deleted. 7. That in any view of the matter the assessee reserves his right to take any fresh ground before the hearing of appeal." 11. We have he....