9911796707
TMI Blog2016 (10) TMI 1260X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for finalizing the assessment. 2. In brief, the relevant facts are that the assessee company is a part of Unity Group of cases, wherein a search and seizure action under section 132(1) of the Act was carried out by the Department on 10/2/2012. A notice under section 142(1) of the Act dated 14/09/2013 was issued by the Assessing Officer for all the seven captioned assessment years fixing the date of hearing on 19/10/2013. Since the notice was received by the assessee only on 17/10/2013, assessee sought adjournment and next date of hearing on 29/10/2013 assessee company furnished only a part of the details called for vide notice under section 142(1) of the Act. The Assessing Officer has noted in her order dated 20/12/2013(supra) that in response to the show cause notice issued under section 271(1)(b) of the Act assessee submitted that due to heavy work lead complete details could not be furnished in time. Not being satisfied with the reply of the assessee, the Assessing Officer held that in view of the reluctance of the assessee in filing the details called for, it was a fit case for imposition of penalty under section 271(1)(b) of the Act. Accordingly, penalty of Rs. 10,000/- f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he other hand, Ld. Departmental Representative defended levy of penalty under section 271(1)(b) of the Act for each of the assessment year by pointing out that the explanation rendered by the assessee for non-compliance was a very generalized explanation to the effect that there was heavy work load. It is pointed out that reasons advanced by the assessee for noncompliance do not justify the deletion of penalty imposed under section 271(1)(b) of the Act. 6. We have carefully considered the rival submissions. Ostensibly, assessee is a part of Unity Group of cases, wherein assessment for the captioned assessment years were carried out after search and seizure action on 10/02/2012. In the instant case, penalty has been levied under section 271(1)(b) of the Act for Rs. 10,000/- for each of the assessment years from 2006-07 to 2012-13, primarily for the reason that assessee did not comply with the requirements contained in the notice issued under section142(1) of the Act dated 14/10/2013. In this context, we find that similar action was taken by the assessing authority in the case of M/s. Unity Infraprojects Ltd. (supra). In the case of M/s. Unity Infraprojects Ltd. (supra), the CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... & in earlier search assessment proceedings. 5. Please submit challans for the payment of taxes in following manner for A.Y. 2006-07 TO 2012-13: Disclosure made Description of issue Date & amount of payment of taxes wrt disclosure made Manner of earning income earned on which disclosure is made Date of notice issued u/s. 153A Date of return filed 6. Explain in details the business undertaken by the company during A.Y. 2006-07 TO 2012-13, including the details of project in following format. On going projects New projects undertaken Projects in pipeline Name of the project Description Address of site Client name Date of start Date of completion Current Status Contract Value 7. Please submit purchase list including name, PAN, contact no., Address of all purchase parties with amount and date of purchase. Submit details of all the purchases in case of the following concerns: (a) Dev Steel (b) Karma Isp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2012-13. Sr. No. Name, PAN, Address and contact no. of the party Purpose Opening Balance Addition during the P.Y Reduction during the P.Y. Closing balance as on P.Y. ending 17. Furnish comparative chart of Gross Profit and Net profit ratio for the period from A.Y. 2006-07 to 2012-13 and also indicate the reasons for variations, if any. 18. Furnish comparative chart of figures of Profit and Loss account and Balance Sheet for all the years from A.Y. 2006-07 to 2012-13 and also indicate the reasons for variations, if any. 19. A detailed list of taxable wealth along with computation of net wealth as per provisions of W.T. Act, 1957 from A.Y. 2006-07 to 2-12-13. Please also explain whether the return of net wealth is being filed by you or not. If the return is filed, a copy of the acknowledgment along with computation may be filed. 20. Kindly furnish details of T.D.S. claimed in the following format for A.Y. 2006-07 to 2012-13. Sr. No. Name, PAN, Address and contact no. of the party Nature of business transaction Gross Income credited as per books of account Income as per TDS certificate TDS deducted Deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with a notice [under sub-section (2) of section 115WD or under sub-section (2) of section 115WE or] under sub-section (1) of section 142 or subsection (2) of section 143 [or fails to comply with a direction issued under sub-section (2A) of section 142], or (c) has concealed the particulars of his income or [* * *] furnished inaccurate particulars of [such income, or] [(d) has concealed the particulars of the fringe benefits or furnished inaccurate particulars of such fringe benefits,] he may direct that such person shall pay by way of penalty,- (i) [* * *] [(ii) in the cases referred to in clause (b), [in addition to tax, if any, payable] by him, [a sum of ten thousand rupees] for each such failure ;]" The provisions of section 273B of the Act read as under: - "273B. Penalty not to be imposed in certain cases Notwithstanding anything contained in the provisions of clause (b) of sub- section (1) of] section 271, section 271A, section 271B section 271BB,] section 271C, section 271D, section 271E, clause (c) or clause (d) of sub- section (1) or sub- section (2) of section 272A, sub- section (1) of section 272AA] or sub- section (1) of section 272BB or] clause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 71(1)(b) of the Act for failure to comply with the requirements called for by the notice under section 142(1) dated 11.10.2013 and the questionnaire attached thereto. In this view of the matter, we delete the penalty levied on the assessee under section 271(1)(b) of the Act @ Rs. 10,000/- for each of the assessment years 2006-07 to 2012- 13. It is accordingly ordered." 6.1 Apart from the aforesaid, the Ld. Representative for the assessee also relied upon the decision of our Co-ordinate Bench in the case of Kripa Realtors Ltd., & Others in ITA Nos.2950/Mum/2015& others dated 20/7/2016, where it has been held that even if assessee had not complied with the requirements of the notice issued under section 142(1) of the Act at a particular stage but later the assessment was finalized under section 143(3) of the Act and not as a best judgment assessment under section 144 of the Act, the subsequent compliance mitigates the rigors of penalty contained in section 271(1)(b) of the Act. In this context, the Tribunal relied upon the following decisions:- 1. Shri Ramesh Kumar Jain vs. ACIT, ITA No.464/Mum/2013 dated 23/9/2015 2. Akhil Bharatiya Prathmik Shmshak Sangh Bhavan Trust v. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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