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TMI Blog2017 (9) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... nder: "1. That the ld. CIT(A) has erred on facts and in law in confirming penalty of Rs. 49,800 levied by the Assessing Officer U/s 272(A)(2)(c)." 2. Since, common issues are involved in all the appeals, therefore, all the appeals are being heard together and for the sake of convenience and brevity, common order is being passed. 3. In all these appeals, there are only one common issue, which is against confirmation of penalty U/s 272A(2)(c) of the Income Tax Act, 1961 (in short the Act). A notice U/s 133(6) of the Act was issued to the Branch Manager, Punjab National Bank, Bhawani Mandi, Kota, Rajasthan by the ITO (Intelligence), Kota on 11/06/2012 wherein the information under the Code 003 transaction code 403, information under the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the reason given for no-compliance of the notices served on him. I have particularly noted the fact that the appellant had ignored the notice sent U/s 133(6) of the Act on several. It is only after the appellant is slapped with penalty notice that he had responded with the required information. Therefore, it is my considered view that the appellant's reason for non-compliance of notices served on him U/s 133(6) of the Ace is in unconvincing. Therefore, the JDIT's orders of levying penalty for Rs. 49,800/- each under various codes with regard to Appeal No. 259/14-15, 260/14-15 and 261/14-15 under section 272A(2)(c) of the Act are sustained. Accordingly, appellant's ground of appeals on this issue are dismissed." 5. Now the assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his needed software support and permission of the Head Office / Regional Office for preparation and extraction of the data from the software. This information, after getting the support and permission of the Head Office I Regional Office, was finally extracted I generated in November, 2013 and was immediately furnished to the AO on 20.11.2013. There was thus a reasonable cause for the delay in furnishing the required information in response to the Notice issued under section 133(6). The delay was not intentional or willful and penalty imposed by the AO under section 272A(2)(c) was not justified. The following favourable case law was cited : (a) (i) State Bank of India, NTPC Branch, Karimnagar District v. Addl. CIT (Int.), Hyderabad (ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court, in the case of CIT v. Superintending Engineer (2003) 260 ITR 641 (Raj-HC), has made the following observations: "The Apex Court in Hindustan Steel Ltd. v. State of Orissa (1973) 83 ITR 26 (SC) has observed that an order imposing penalty for failure to carry out a statutory obligation is the result of a quasi-criminal proceeding and penalty will not ordinarily be imposed unless the party obliged either acted deliberately in defiance of law or was guilty of conduct contumacious or dishonest, or acted in conscious disregard of its obligation. The Apex Court further observed that penalty will not also be imposed merely because it is lawful to do so. The powers are to be exercised judiciously. The Apex Court held as follows: "Whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned Counsel of the assessee, I am of the opinion that there is no need for levy of penalty in the given cases. First of all, the notice issued u/s. 133(6) is a general notice asking for information which is not in the domain of the ITO, CIB. The CBDT itself has prescribed certain limits for calling for information and Income tax Act also prescribes various limits for furnishing information on a regular basis from the banks in annual returns. The details asked in various codes is neither prescribed by the Act nor supported by the Boards circular. This information is specifically asked by ITO, CIB in a particular format may be on the strength of internal instructions. For example, the Time Deposits exceeding Rs. 2 Lakhs under code No. 003 is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s is clearly reflects that the Branch Manager to whom the notice was issued, was not having any respect to the law and he continued his non-compliance for more than 1½ years, which could have lead to time barred many enquiries which department could have made on the basis of information. He prayed to sustain the penalties. 7. I have heard both the sides on this issue. I have also convinced that there was inordinate delay in complying the notice. However, I have noticed that there was only one notice was issued by which the information under different codes were sought. I agree with the conclusion drawn by the Income tax authorities regarding non-compliance of notice and not having a reasonable cause for the non-compliance. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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