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TMI Blog2017 (12) TMI 349X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 not only during the course of the assessment proceedings but also before the Assessing Officer and Learned CIT(Appeals) in the impugned penalty proceedings and hence penalty cannot be levied in such circumstances. - Decided in favour of assessee - ITA Nos. 4392, 4393, 4394, 4395, 4396, 4397 And 4398/Del/2015 - - - Dated:- 25-8-2017 - SHRI G.D. AGRAWAL, PRESIDENT AND SHRI AMIT SHUKLA,JUDICIAL MEMBER For The Assessee : Shri Gautam Jain, Advocate Shri Piyush Kumar Kamal, Advocate For The Revenue : Shri S.N. Rana, CIT-DR ORDER PER BENCH: The aforesaidappeals have been filed by theassessee against common impugned order dated 08.05.2015, passed by the Ld. CIT(Appeals)-XXVI, New Delhi, in relation to the penalty proceedings u/s 271(1)(b) for the A.Ys. 2002-03 to 2008-09. 2. Since in all the appeals the issues involved are same arising out of the identical set of facts, therefore, the same were being heard together and are being disposed off by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... looking after the entire matter was detained in judicial custody since August, 2012 and was there for more than 2 years. Since, Shri Gopal Kumar Goyal was entrusted with all the decisions and was aware of thetax matters and documents; therefore, there was delay in collecting information and consequently making certain compliances. Thus, it was pleaded that there was a reasonable cause for delay in submitting the replies or non-compliance on the appointed date. 5. However, the ld. Assessing Officer levied the penalty of ₹ 20,000/- on the ground that the assessee did not attend offices in response to the various notices issued or date fixed on two of the occasions. 6. The Learned CIT(Appeals) too has confirmed the said penalty after observing and holding as under:- 8.3. None of the reasons given in the written submission, namely, search operations on the MDLR group in January 2008, detention of Shri Gopal Goyal, poor turn-out of employees at work place, large number of pendency of assessments u/s 153A, and preparation of voluminous details, constitute reasonable cause that prevented the appellant from complying with the aforementioned notices or filing letters ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Here, the appellant did not comply with the statutory notices on 2 different occasions spread over a period of 3 months. The appellant could have escaped from the rigours of penalty, had the statutory notice been acknowledged and adjournment requested timely. However, the appellant chose to completely ignore the statutory notices, and therefore in the absence of a reasonable cause, became liable for penalty u/s 271(1)(b). 7. Before us, the ld. Counsel submitted that in response to the show cause notice u/s 271(1)(b), the assessee has filed very exhaustive reply before the Assessing Officer. The copy of which are appearing at pages 7 to 13 of the paper book and also pointed out that during the course of the assessment proceedings various submissions were filed which have not been properly considered. The detail of replies filed on various cases including that of assessee sent through registered post or dak has been illustrated at pages 14 to 16of the paper book. Apart from that, he submitted that in the first appeal the relief has already been granted to the assessee and income has been computed at nil and such appellate orders have attained finality. The copy of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Counsel before us. Ostensibly there may be a case of delay in compliance or filing of replies before AO and not personally appearing before the Assessing Officer on a particular date, but compliances in form of replies do have been filed in the course of assessment proceedings and all the necessary details required for the purpose of assessment has been provided. What are required to be seen while levying penalty for non-compliance of statutory notices, is the facts and circumstances for non-appearance on the specified date, that is, whether there was any reasonable cause and the overall conduct of the assessee. The main planks for reasonable cause pleaded by the assessee has been that, firstly, the key person/group head, Shri Gopal Kumar Goyal who was entrusted with 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; secondly, more than 300 group assessments were initiated in the wake of search proceedings which were simul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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