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2019 (8) TMI 1443 - AT - Income TaxPenalty levied u/s 272A(2)(c) - assessment of assessee was reopened on the basis of information received by Government of India from French Government under Double Taxation Avoidance Agreement in exercise of its sovereign power that some Indian nationals and residents including assessee had Foreign bank account with HSBC Bank, Geneva, Switzerland, which were undisclosed to the Indian Tax Department - HELD THAT:- In the present case, though, the AO was allegedly having information in the form of a Base Note wherein various details of account holder were provided. The assessee in reply to the notice u/s 133(6) specifically denied ownership or any relation of any bank account. The assessee in his reply categorically stated neither he owned bank account nor he has owned any relationship with the alleged bank account in HSBC Bank, Geneva. AO without rebutting his reply that there was any material before him to prove the contrary, has held that assessee has not complied with notice u/s 133(6) by not signing the consent waiver form. Once assessee has duly complied with all the notices sent by the AO, he cannot take the view that assessee failed to produce the required document. We have also noted that on the basis of same information the case of assessee was reopened under section 147 by issuing notice u/s 148 dated 12.03.2014. The assessee before the CIT(A) specifically contended that the re-opening proceeding was dropped by the Assessing Officer. In our view once the assessee denied the ownership of the bank account in response to the notice under section 133(6), the Assessing Officer cannot take the plea that assessee failed to comply with the condition of aforesaid notice. Hence, we are of the view that levy of penalty by Assessing Officer under section 272A(2)(c) was not justified. Therefore, we direct the Assessing Officer to delete the entire penalty. - Decided in favour of assessee.
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