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2015 (9) TMI 545 - AT - Income TaxPenalty u/s. 272A(2)(c) - CIT considered the non-submission of information as willful default and levied penalty - default in issuing notice - Held that:- There is no need for levy of penalty in the given cases. First of all, the notice issued u/s. 136 is a general notice asking for information which is not in the domain of the ITO, CIB. The CBDT itself has prescribed certain limits for calling for information and Income tax Act also prescribes various limits for furnishing information on a regular basis from the banks in annual returns. The details asked in various codes is neither prescribed by the Act nor supported by the Board’s circular. This information is specifically asked by ITO, CIB in a particular format may be on the strength of internal instructions. For example, the Time Deposits exceeding ₹ 2 Lakhs under code No. 003 is not to be generally furnished by the banks to the department in the presribed annual return, likewise, other codes also for which different amounts were prescribed by the Act. This indicates that this information was specifically asked for by the ITO, CIB. Instead of giving this separate notice for each code, a common notice was issued for all the three codes. Addl. CIT initiated penalty proceedings by issuing only one notice but levied penalty for three notices as extracted above. This indicates that without issuing notice, the Addl. CIT, CIB levied penalty three times for the same default. This cannot be justified. Not only that, there were various notices which are mentioned in the order which are not in the knowledge of assessee, therefore service of the notice also is to be doubted. Thus there is reasonable cause for non- compliance as required and therefore, penalty u/s. 272A(2)(c) cannot be levied, where there is bonafide and reasonable cause for non-compliance to the notice. Decided in favour of assessee.
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