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Pillala Vishnu Vandana Versus ACIT, Central Circle-2, Visakhapatnam

2016 (1) TMI 1209 - ITAT VISAKHAPATNAM

Levy of penalty u/s 271(1)(b) - assessee was subjected to search u/s 132, consequently, the assessment proceedings u/s 153A was initiated - A.O. held that the assessee failed to appear on the date of hearing and also failed to seek adjournment - Held that:- We find force in the arguments of the assessee for the reason that the A.O. has given insufficient time to gather voluminous information for a period of seven years. We further observed that the assessment was finally completed u/s 143(3) r.w .....

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she could not attend as on the date of hearing because of insufficient time given by the A.O. to collect voluminous information appears to be reasonable and bonafide - Decided in favour of assessee. - I.T.A.No.30 & 31/Vizag/2016 - Dated:- 6-1-2017 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER For The Appellant by : Shri G.V.N. Hari, AR For The Respondent : Shri G. Guruswamy, DR ORDER PER G. MANJUNATHA, Accountant Member: These two appeals filed by the assessee a .....

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of M/s. Gayatri Constructions on 20.12.2012. The assessee was also subjected to search u/s 132 of the Act. Consequently, the assessment proceedings u/s 153A of the Act was initiated. In response to notice u/s 153A of the Act, the assessee filed e returns for the assessment year 2007-08 to assessment year 2013- 14. Subsequently, notices u/s 142(1) & 143(2) of the Act were issued calling for certain information in connection with the assessment proceedings. The assessee neither appeared before .....

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ngs. The assessee further submitted that the A.O. has sought huge information for a period of 7 years, as such she could not able to gather all the information within the time given in the notice. However, the fact is that she had complied with all the information sought by the A.O. and the assessing officer has completed the assessment u/s 143(3) r.w.s. 153A of the Act and accordingly, levy of penalty for initial failure to attend for hearing is unjustified. The A.O. after considering the expla .....

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the Act, for each such failure for the assessment years 2007-08 to 2013-14. 5. Aggrieved by the penalty order, the assessee preferred an appeal before the CIT(A). Before the CIT(A), the assessee reiterated the submissions made before the A.O. The assessee further submitted that the A.O. was not correct in levying penalty u/s 271(1)(b) of the Act as she had cooperated with the A.O. for completion of assessment, which is evident from the fact that the assessment order is passed u/s 143(3) r.w.s. 1 .....

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upon the following judgements: 1) Swarnaben M. Khanna & Ors Vs. DCIT (2010) 132 TTJ 0001(UO) Ahd Trib. 2) Akhil Bhartiya Prathmik Shikshak Sangh Bhawan Trust Vs. ADIT (2008) 115 TTJ 0419 Ahd Trib 3) Karnavati CIT(A), Rajahmundry Air Conditiners (P) Ltd Vs. ITO (2012) 32 CCH Ahd. Trib. 4) Pole Star Securities Ltd. Vs. ACIT (2014) 40 CCH 0374 Del Trib. 6. The CIT(A) after considering the explanations furnished by the assessee, held that a mere non-compliance of initial notices without a differ .....

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nonserious in so far as assessment proceedings u/s 143(3) of the Act. With these observations, directed the A.O. to delete penalty levied in cases where the A.O. has given 8 days time for appearance. However, in the cases where the A.O. has given 26 days time, the CIT(A) opined that the assessee failed to offer any explanations for not appearing on the date fixed for hearing and hence, the A.O. was right in levy of penalty u/s 271(1)(b) of the Act. Aggrieved by the CIT(A) order, the assessee is .....

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rranted. The Ld. A.R. further drew our attention to the decision of coordinate bench of ITAT, Visakhapatnam in assessee s husband case in ITA No.81/Vizag/2016 dated 26.8.2016 and submitted that under similar set of facts, the ITAT held that the explanations offered by the assessee that she could not attend on the dates of hearing because of insufficient time given by the A.O. to collect voluminous information appears to be reasonable and bonafide. Since, the facts of the present case are identic .....

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th the parties, perused the materials available on record and gone through the orders of the authorities below. The A.O. levied penalty u/s 271(1)(b) of the Act, for failure to comply with statutory notices issued u/s 142(1) of the Act. The A.O. was of the opinion that the assessee has failed to offer proper explanation for nonattendance as on the date of hearing. It is the contention of the assessee that non-attendance as on the date of hearing is not intentional as the A.O. has called for volu .....

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rs. We further observed that the assessment was finally completed u/s 143(3) r.w.s. 153A of the Act, after fully supplied with all material facts required for assessment proceedings. Hence, we are of the view that the initial failure becomes technical, which does not warrant levy of penalty u/s 271(1)(b) of the Act. We further observed that a similar issue has been considered by this bench, in assessee s husband case in ITA No.81/Vizag/2016 dated 26.8.2016, wherein the coordinate bench of this T .....

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r failure to comply with statutory notices issued u/s 142(1) of the Act. The A.O. was of the opinion that the assessee has failed to offer proper explanation for non-attendance as on the date of hearing. It is the contention of the assessee that nonattendance as on the date of hearing is not intentional, as the A.O. has called for voluminous information for 7 assessment years within a short period of 7 to 15 days. The information called for by the A.O. is voluminous and he could not gather all t .....

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