TMI Blog2024 (4) TMI 1075X X X X Extracts X X X X X X X X Extracts X X X X ..... tate of deceased assessee delved could only be recovered (if any) from the legal representative. Conversely nothing other than tax can be fastened to the estate succeeded by the LR. The honourable High Courts and Apex Court in catena of judicial precedents has held that penalty proceedings are quasi-criminal in nature. In criminal jurisprudence, a crime dies with a man and the legal representative of the deceased offender or criminal cannot be penalised for the offences or crimes committed by the deceased. As such penalty proceedings are different and distinct in nature than tax while tax are price paid for buying civilisation whereas the penalties are levied for the contumacious conduct of the wrong doer therefore such penalty proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /11/2022 of the National Faceless Appellate Centre [ NFAC hereinafter] for assessment year 2017-18 [ AY hereinafter] passed u/s 250 of the Income-tax Act, 1961 [ the Act hereinafter] confirming the levy of penalty u/s 271B of the Act. 2. Tersely stated facts of the case are that; 2.1 The assessee is an individual engaged in the business of running petrol pump. The assessee filed her return of income [ ITR hereinafter] on 26/09/2018 which was summarily processed u/s 143(1) of the Act accepting the returned income however triggered a penalty proceedings u/s 271B for non-furnishing of Tax Audit Report [ TAR hereinafter] within the prescribed time limit u/s 44AB r.w.s. 139(1) of the Act. 2.2 A penalty proceeding by issue of notice dt. 12/03/202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imposition of penalty the appellant assessee set-up this appeal on a solitary ground that the appellate authority erred in law and facts circumstance in confirming the penalty u/s 271B of the Act. 3. The case was called twice; none appeared at the bequest of the assessee. In absence of appellant, with able assistance from Revenue we deem it fit to reject adjournment dt. 15/03/2024 which besides informing the appellant is no more cited no convincing reasons therein. Consequently we proceeded to adjudicate the matter ex-parte u/s 24 of the Income Tax Appellate Rules, 1963. [ ITAT-Rules ]. 4. We have heard Ld. DR Mr Marathe and subject to rule 18 of ITAT-Rules, perused the material placed on records. We note that, after having failed to prove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act has been substituted in place of word any tax which occurred in old section 24B of the Income Tax Act, 1922 so as to cover not only tax payable but also any penalty or interest. Therefore, the legal representatives of the deceased can also be liable to pay penalty on behalf of the deceased assessee pursuant to the provisions of Section 159(1) of the Act. This finds support in the ratio of Hon ble Allahabad High Court in case of Kalawati Devi Vs ITO [1981, 6 Taxman 252] wherein their Hon ble Lordship have held that, section 159(1) clearly makes the legal representatives liable not only for the tax payable by the deceased-assessee but also for all sums which the deceased would have been liable to pay had he not died. Hence, penalty proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es or crimes committed by the deceased. As such penalty proceedings are different and distinct in nature than tax while tax are price paid for buying civilisation whereas the penalties are levied for the contumacious conduct of the wrong doer therefore such penalty proceedings abate on the death of the assessee. If recovery of , penalty is permitted against the estate of deceased, then it would clearly lead to permitting the enforcement of crime against the right of LR in succeeded estate. 9. In view of the decision of Hon ble Calcutta High Court in Taraknath Gayen and others Vs CEGAT [1987, 31 ELT 631 (Cal)] Omwati Vs UOI [2000, 125 ELT 136 (All.)] their Hon ble Lordships have held that, the penalty amount is not recoverable from the legal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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