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Manish Periwal Versus DCIT Central Circle-7 New Delhi

2017 (6) TMI 452 - ITAT DELHI

Penalty u/s 271(1) (b) - undisclosed bank account - assessments u/s 153A - Held that:- The assessee was subjected to such assessments u/s 153A in respect to alleged maintenance of un-disclosed HSBC, Switzerland Bank Account. - The facts about the Bank Accounts and other circumstances are in the exclusive knowledge of the assessee and non co-operation leads to derailment of investigation. It is the duty of every assessee to duly respond to statutory notices failing which the law provides impo .....

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ars as defaults are more than 3 times. It has been rightly held that there is no law that for each default separate notice u/s 27(1)(b) should be issued on defaulting assessee. The orders of ld. CIT(A) being justified on proper appreciation of facts and law and based. In the result, assessee’s appeals are dismissed. - ITA No. 5157-5162/Del/2014 - Dated:- 8-6-2017 - Sh. Ramesh. P. Tolani, Vice President, And Sh. Prashant Maharishi, Accountant Member For The Assessee : None For The Revenue : Sh. R .....

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been illegally levied against the provisions of Act as sec. 142(1) does not authorize IT authorities to issue such notice and force the assessee to sign the same. The imposition is in violation of principles of natural justice. ii. The defaults for violation of notices u/s 142(1) dated 2/5/13 and 12/6/13 have been attributed wi thout issuing notices. iii . The penal ty notices u/s 271(1)(b) for one default but same has been levied for 3 defaults. 2. None appeared for the assessee despite notice .....

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ereafter further reminders for hearings were issued on 02.05.2013, 12.06.2013 and 11.07.2013. Since the assessee did not comply with all these statutory notices, show cause notices u/s 271(1)(b) read with section 274 were issued in accordance with I T Act. 4. In response to penalty notices, assessee of notices vide reply dated 01.10.2013 challenged the legality and claimed that no evidence as alleged was called for by AO. The replies were found to be non satisfactory and penalty at ₹ 30,00 .....

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s u/s 142 do not require furnishing of such documents, and (iii) no specific default or amount of tax has been referred to in the penalty order. 6.2 So far as the first objection is concerned, it is noted that appellant had been searched u/s 132 and was well aware of the tax proceedings against him. The appellant was specifically asked in the notices dated 02.05.2013 and 12.06.2013 about the details of foreign bank accounts opened and maintained by the appellant and his relatives. A third notice .....

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shing the information called for and as to why penalty should not be imposed for such failure u/s 271(l)(b). One of the objections raised by the appellant is that the show-cause notice was only in regard to the notice dated 11.07.2013 and not in regard to the earlier notices dated 02.05.2013 and 12.06.2013. As the defaults of the appellant were continuing defaults, the appellant was given one more opportunity during this appeal also, and a show-cause notice was issued to him on to explain as to .....

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had paid the tax with interest on the amount of deposit in a foreign bank account brought to his notice by the Department during the search and seizure, the information called for was necessary for the correct assessment of the income of the appellant chargeable to tax under the Act as the appellant is a tax resident of India, it cannot be concluded that the information / document sought was not required u/s 142(1). The appellant, having admitted the amount of deposit in the said bank account, .....

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r each failure to comply with a notice u/s 142(1). There is no requirement under the law for escapement of tax or any reference to any tax quantum. Thus, this objection raised by the appellant has no legal basis. 7.2 These cases are not of simple tax evasion, but of suspected tax evasion by transferring or keeping funds overseas in an illicit manner. These persons suspected of having opened and maintained undisclosed bank account overseas, were required to sign and execute / notarize the consent .....

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0 and 161 in the Code of Criminal Procedure, 1973 and the punishment for the same is prescribed in Section 174 of the Indian Penal Code, 1860. Under the civil law, the relevant provisions are contained in Sections 31 & 32 and Order XVI (Schedule-!) of the Code of Civil Procedure, 1908. Under the Income Tax Act, 1961 the enforcement provisions are contained in Sections 131, 132, 133, 133A 142 and143. The penal provisions contained in Chapter XXI relevant to enforcement of sections 142/ 143 ar .....

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cause, to furnish the information sought and to execute the consent letter vide the three notices issued by the revenue, is upheld. These orders shall be read as three separate orders. I also f ind that for refusal to sign / execute a document, penal ty is imposable u/s 271 as well as u/s 272A. Accordingly, the provision shall be read as section 271(1)(b) and al ternatively as Section 272A. 8. Ld. DR contends that the assessee was found to have maintained undisclosed foreign a/c in HSBC Bank, Sw .....

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