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2022 (3) TMI 675 - HC - Income TaxImposition of penalty u/s 271(1)(b) - non-compliance of the notice issued under Section 142(1) - HELD THAT:- A perusal of the paper book reveals that the ITAT in the impugned orders has followed the decision of this Court in the case of Mr. Sanjay Dalmia [2018 (3) TMI 1411 - DELHI HIGH COURT] wherein penalty u/s 271(l)(b) of the Act was upheld for all the seven years arising out of the same search, relating to the same bank account and for the same reason of not filing the consent letter. This Court is of the view that the protective assessment against the Appellant-assessee was deleted by the CIT(A) as the additions had been made both on protective and substantive basis in the hands of her husband with regard to the same Swiss Bank account as he was account holder No.1. This Court is further of the view that the judgment passed by the Supreme Court in Selvi & Ors [2010 (5) TMI 907 - SUPREME COURT] has no application to the facts of the present case as the same has only upheld the principle of ‘right of silence’ and, that too, in the context of criminal proceedings. Though there are certain observations with regard to the non-penal proceedings, yet the same is not the ratio of the said judgment. This Court is of the opinion that if the assessee really had no connection with the Swiss Bank accounts, no prejudice would have been caused to her if she had complied with the notice under Section 142(1) of the Act and filled the consent form. Moreover, it cannot be that penalty is upheld with regard to the attorney holder (Mr. Sanjay Dalmia) of the Swiss bank account and not with regard to the account holder no.2 (Appellant-assessee) qua the same bank account. No question of law arises of consideration and the penalty imposed upon the Appellant cannot be held to be erroneous and unwarranted. Accordingly, the present appeals are dismissed.
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