2018 (3) TMI 1180 - AT - Income Tax

Penalty imposed u/s 271(1)(c) - Held that - We find that the assessee did not cooperate during the course of assessment proceedings as well as the penalty proceedings and further the Commissioner of Income Tax (Appeals) overlooked the fact that remand report was very crucial in the present cases and the assessee did not file requisite details during the assessment and penalty proceedings. All the issues raised in these four appeal relating to quantum as well as penalty imposed u/s 271(1)(c) of the Act needs to be set aside to the file of the Assessing Officer for de novo assessment and we further direct the assessee to remain compliant with the notices of hearing and should not take unnecessary adjournment unless otherwise required.

Issues:
Appeals against deletion of quantum addition and penalty under section 271(1)(c) of the Income Tax Act for the assessment year 2009-10.

Analysis:
1. The appeals were directed at the revenue's instance concerning two assessees for the assessment year 2009-10. Two appeals were against the deletion of quantum addition, and the other two were against the deletion of penalties imposed under section 271(1)(c) of the Act.
2. The assessee did not appear during the hearing, prompting the Tribunal to proceed with the assistance of the learned DR as the assessee remained non-compliant despite various adjournments.
3. Since the issues raised in all appeals were common, they were heard together for convenience.
4. The case involved cash deposits in the assessee's savings account, leading to an assessment under section 144/147 of the Act, resulting in quantum additions and penalties imposed by the Assessing Officer.
5. The appeals challenged the deletion of quantum additions and penalties by the Commissioner of Income Tax (Appeals) for both assessees.
6. The revenue raised grounds against the Commissioner's order, arguing that it was passed without awaiting the remand report from the Assessing Officer.
7. The learned DR supported the Assessing Officer's order, emphasizing the importance of the remand report and the need for the Assessing Officer to examine relevant documents.
8. The Tribunal observed that two appeals related to quantum additions, and the other two concerned penalties imposed by the Assessing Officer, which were subsequently deleted by the Commissioner of Income Tax (Appeals).
9. The Tribunal noted the lack of cooperation from the assessee during assessment and penalty proceedings and the oversight by the Commissioner of Income Tax (Appeals) regarding the crucial remand report.
10. Several crucial issues remained unexamined by the lower authorities, including discrepancies in income sources, sale consideration amounts, details of cash transactions, and taxability of transactions.
11. In the interest of justice and considering the observations made, the Tribunal set aside all issues for de novo assessment by the Assessing Officer, directing the assessee to comply with hearing notices.
12. The Tribunal's decision applied mutatis mutandis to all appeals, allowing the revenue's grounds for statistical purposes.
13. Consequently, all appeals were allowed for statistical purposes, and the decision was pronounced on March 20, 2018.

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