9911796707
|
Home
Issues involved: The judgment deals with the confirmation of a penalty u/s 271(1)(b) of the Income Tax Act, 1961 by the Commissioner of Income Tax (Appeals) and the subsequent appeal filed by the assessee challenging the penalty for assessment years 2003-04 to 2008-09.
Issue 1: Confirmation of penalty by CIT(A) The Appellate Tribunal noted that the assessee failed to attend before the Assessing Officer (AO) on multiple occasions, with adjournment letters filed by M/s. Malpani & Associates without proper authorization. The AO rejected the explanation provided by the assessee, citing lack of satisfactory evidence. The CIT(A) upheld the penalty, emphasizing that the onus was on the assessee to show reasonable cause for non-compliance with notices. The Tribunal observed that there was no evidence of deliberate defiance of the law by the assessee, as required for penalty under section 271(1)(b). Relying on legal precedents, the Tribunal concluded that the penalty was not justified and proceeded to delete the penalty for all the years in question. Issue 2: Lack of authority for adjournment applications The Tribunal highlighted that the AO's contention regarding the lack of authority for adjournment applications filed by M/s. Malpani & Associates was not substantiated by any concrete evidence. While the CIT(A) relied on concealment penalty precedents, the Tribunal clarified that the penalty under section 271(1)(b) required a different standard of proof. Referring to the decision in Hindustan Steel Ltd. vs. State of Orissa, the Tribunal emphasized the need to establish deliberate defiance of the law or contumacious conduct for penalty imposition. Since there was no material indicating such behavior by the assessee, the Tribunal deemed the penalty unjustified and proceeded to allow all the appeals filed by the assessee. Separate Judgment: None.
|
