TMI Blog2016 (5) TMI 1495X X X X Extracts X X X X X X X X Extracts X X X X ..... tituted and established that the assessee had reasonable cause, as envisaged in section 273B r.w.s. 271(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. we delete the penalty levied on the assessee under section 271(1)(b) - Decided in favour of assessee. - ITA Nos. 5079 to 5085/Mum/2014 (Assessment Years: 2006-07 to 2012-13) - - - Dated:- 17-5-2016 - Shri Jason P. Boaz and Shri Sandeep Gosain, JJ. Appellant by: Shri Vijay Mehta Respondent by: Shri R.A. Dyani ORDER Jason P. Boaz, These appeals by the assessee are directed against the consolidated orders of the CIT(A)-38, Mumbai dated 30.06.2014 for assessment years 2006- 07 to 2012-13. 2. The facts of the case, briefly, are as under: - 2.1 A search and seizure action under section 132 of the Income Tax Act, 1961 (in short 'the Act') was conducted by the Department at the premises of the Unity group of concerns on 10.02.2012. In the course of assessment proceedings, the Assessing Officer (AO) had issued notice under section 142 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ears 2006-07 to 2012-13, the assessee preferred appeals before the CIT(A)-38, Mumbai. Before the learned CIT(A), the assessee submitted a chart showing the list of details submitted to the AO for the entire Unity group from 18.10.2013 to 16.12.2013, i.e. the date on which the reply to the penalty notice was issued. Further, a proceeding sheet was also submitted by the assessee in its own case showing the sequence of events which took place from the date of issuance of notice under section 153A till 17.12.2013, i.e. the date on which the notice under section 271(1)(b) was issued. The learned CIT(A) did not accept the submissions put forth by the assessee and upheld the levy of penalty of ₹ 10,000/- under section 271(1)(b) of the Act for each of the assessment years 2006- 07 to 2012-13, observing as under: - (i) that the provisions of section 271(1)(b) of the Act empowers the AO to levy penalty in respect of each of the failures and the only ground on which an assessee can seek exception from levy of penalty is by offering an explanation with regard to any reasonable cause for not complying with the notices; (ii) that substantial details were not filed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the Diwali festival period when many staff are on vacation, article assistants on leave for examinations, finalizing and filing of returns of income for the assessee group and transfer pricing audits being simultaneously carried out, etc. In any case the assessee had filed partial details vide letter dated 18.10.2013. 4.2.2 The learned A.R. for the assessee drew the attention of the Bench to para 8 of the impugned order when the learned CIT(A) observed that the provisions of section 271(1)(b) of the Act empowers the AO to levy penalty for each of the failures to comply with the notice issued under section 142(1) and the only ground that the assessee can seek exception is by establishing reasonable cause for delay in submitting all the details within the stipulated time. In this regard, the learned A.R. for the assessee contends that the assessee received the notice under section 142(1) of the Act dated 12.10.2013, calling for voluminous details numbering 26 items for assessment years 2006-07 to 2012-13 to be furnished by 17.10.2013, only on 17.10.2013. Thus it was impossible for the assessee to comply by furnishing the details on the due date; since the notice itself ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 4.3 Per contra, the learned D.R. for Revenue vehemently supported the orders of the authorities below. 4.4.1 We have heard the rival contentions of both the parties and perused and carefully considered the material on record. The facts of the matter as emanate from the record are that in the course of assessment proceedings, the AO issued a notice under section 142(1) of the Act dated 11.10.2013 for assessment years 2006-07 to 2012-13, calling upon the assessee to furnish the details, mentioned in the questionnaire annexed thereto, to be filed on 17.10.2013 at the hearing scheduled for 10.30 a.m. (copy of the same is placed at pages 2 to 7 of the assessee s paper book). It is apparent that the penalty under section 271(1)(b) of the Act was levied on the assessee for the said seven assessment years, for failure on its part to comply with filing the requirements called in the questionnaire annexed to the notice under section 142(1) of the Act dated 11.10.2013. In our view, it is relevant to extract hereunder the questionnaire appended to the notice under section 142(1) of the Act dated 11.10.2013: - QUESTIONNAIRE/A.Y.2006-07 TO 2012-13/UNITY INFRAPRO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntact 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 Ispat (c) Param Commercial Co. (d) Steelcon Infratrade Pvt. Ltd. (e) Magnum Infraprojects Ltd. (f) Mahendra Brothers (g) Dhani Products Pvt. Ltd. Please submit the information for these parties in the following format in different sheet for each concern for the period A.Y. 2006-07 to A.Y. 2012-13: A.Y. Name of the company Bill No. and date of purchase Quantity Name of the material Purchase Amount Corresponding sell amount Name, Address and PAN of the sell party Sale bill/Invoice No. Also furnish corresponding delivery challan, Octroi receipt/challan, Weigh Bill, Material Receipt Note, Stock Book Entry at site/project office in case of each purchase. Submit evidence in support of claim. 8. Details of scrap sale made by the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rofit 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 andcontact no. of the party Nature of business transaction Gross Income credited as per books of account Income as per TDS certificate TDS deducted Deduction u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1(1) If the [Assessing] Officer or the [Commissioner (Appeals)] [or the Principal Commissioner or Commissioner] in the course of any proceedings under this Act, is satisfied that any person- (a) [---------------] (b) has [* * *] failed to comply 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 sub-section (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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