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TMI Blog2017 (11) TMI 792X X X X Extracts X X X X X X X X Extracts X X X X ..... on them under sub-section (1) of section 142 of the Act. The facts submitted by assessee for reasonable cause have not been controverted by the AO or the Ld. CIT (Appeals). All these facts and circumstances, under any prudence, do constitute reasonable cause falling within the scope and ambit of section 273B and accordingly, we are of the considered opinion that failure to comply with certain notices on a particular date was due to reasonable cause as highlighted by the assessee/s not only during the course of the assessment proceedings but also before the Assessing Officer and the Learned CIT(Appeals) in the impugned penalty proceedings and hence penalty cannot be levied in such circumstances. - Decided in favour of assessee. - ITA No. 4556/Del/2015, ITA No. 4557/Del/2015, ITA No. 4558/Del/2015, ITA No. 4560/Del/2015, ITA No. 4561/Del/2015, ITA No. 4563/Del/2015 And ITA No. 4564/Del/2015 - - - Dated:- 31-8-2017 - SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER For The Appellant : Shri Gautam Jain, Adv. Shri Piyush Kumar Kamal, Adv. For The Respondent : Shri R.C. Dandey, Sr. DR ORDER PER BENCH : These are a batch of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t date of hearing. Accordingly, the penalty proceedings initiated under section 271(1)(b) were kept in abeyance till the verdict of the Hon ble High Court. The Hon ble High Court vide order dated 20th of December 2013 decided the writ/s of the assessee/s in favour of the Department and consequently the penalty proceedings under section 271(1)(b) of the Act were taken as revived which had been kept in abeyance subsequent to the directions of the Hon ble High Court. Thereafter, the AO did not accept the plea of the assessee/s that there was a reasonable cause on the part of the assessee/s for non-compliance of the notices issued under section 271(1)(b) of the Act and proceeded to impose the penalties. Accordingly, the AO imposed the penalties as under SNo Assessee Assessment Year Penalty Amount (Rs.) 1 Shivganesh Buildcon (P) Ltd 2007-08 20,000/- 2 Shivganesh Buildcon (P) Ltd 2008-09 20,000/- 3 Shivanandan Buildcon (P) Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly constitute a justification for non-compliance of the statutory notices in the case of the appellant. Moreover, if the 'circumstances', cited as 'reasonable cause' for noncompliance of statutory notices, did not come in the way of filing the writ petitions, these could not possibly have hindered the presence of the assessee/AR before the AO on 30.11.2012 and 28.12.2012. 8.5. As per section 271(1)(b) read with section 273B, the penalty u/s 271(1)(b) is visited upon the taxpayer who has failed to comply with the notices mentioned therein, for each default unless reasonable cause for such failure is proven. In the case at hand, the appellant has made assertions and claims that are not valid for non-compliance of statutory notices. No compelling and reasonable cause for failure to comply with the statutory notices has been advanced. 8.6. While examining the matter of penalty u/s 271(l)(b) read with section 274, the only aspect that has to be examined is whether there was any reasonable cause that prevented the appellant from complying with the statutory notices issued by the AO. Here, the appellant did not comply with the statutory notices on 2 different o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as rational according to the dictates of reason and is not excessive or immoderate. The word reasonable has in law the prima facie meaning of reasonable with regard to those circumstances of which the actor, called on to act reasonably, knows or ought to know (see In re, A Solicitor (1945) KB 368 (CA).Reasonable cause can be reasonably said to be a cause which prevents a man of average intelligence and ordinary produce, acting under normal circumstances, without negligence or inaction or want of bona fides. 5.2 In the case of Azadi Bachao Andolan v. Union of India reported in 252 ITR 471 (Delhi), Delhi, the Hon'ble High Court held:- Section 273B starts with a non obstante clause and provides that notwithstanding anything contained in several provisions enumerated therein including section 271C, no penalty shall be imposable on the person or the assessee, as the case may be, for any failure referred to in the said provisions, if he proves that there was reasonable cause for the said failure. A clause beginning with notwithstanding anything is sometimes appended to a section in the beginning with a view to give the enacting part of the section in case of conflic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that score, we find the order passed by the Commissioner to be non- maintainable. 5.3 In the appeals before us, the main plea for reasonable cause pleaded by the assessee/s has been that the key person/group head, Shri Gopal Kumar Goyal who was entrusted with the income tax matters and was looking after the entire working of the group was in judicial custody in some criminal proceedings and the entire group and family members were engaged in ongoing court proceedings for his early release and various employees were leaving the group further accentuating the problems. These facts have not been controverted by the AO or the Ld. CIT (Appeals). All these facts and circumstances, under any prudence, do constitute reasonable cause falling within the scope and ambit of section 273B and accordingly, we are of the considered opinion that failure to comply with certain notices on a particular date was due to reasonable cause as highlighted by the assessee/s not only during the course of the assessment proceedings but also before the Assessing Officer and the Learned CIT(Appeals) in the impugned penalty proceedings and hence penalty cannot be levied in such circumstances. 5.4 Since ..... X X X X Extracts X X X X X X X X Extracts X X X X
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