9911796707
TMI Blog2019 (10) TMI 729X X X X Extracts X X X X X X X X Extracts X X X X ..... ful perusal of the orders of authorities below, specifically the assessment order, we find that the assessee has been given ample opportunities of hearing and the AO has mentioned the dates with regard to opportunity given to the assessee to represent his case, however, the assessee has not complied the notice issued by the AO even after issuance of reminders by the AO to the assessee, the assessee has not bothered to comply the same, which enabling the assessee to frame the assessment u/s.144 of the Act. Accordingly, the above contention of the ld. AR of the assessee that the assessee gets immunity from the provisions of Section 273B of the Act, is rejected. - Decided against assessee. - ITA No.29 & 30/CTK/2014 And ITA Nos.575 & 576/CTK/2013 And ITA Nos.577 &578/CTK/2013 And ITA No.15/CTK/2014 And ITA No.16 & 17/CTK/2014 - - - Dated:- 14-10-2019 - Shri C.M. Garg, JM And Shri L.P. Sahu, AM For the Assessee : Shri Suni Mishra, Advocate For the Revenue : Shri S.M.Keshkamat, CIT DR ORDER PER BENCH : These are the appeals filed by different assessees, as mentioned above, against t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 29.12.2010 30.06.2011 25.10.2013 7. 15/CTK/14 Aliza International (P) Ltd. 2009-2010 29.12.2010 30.06.2011 07.11.2013 8. 16/CTK/14 Yazdani International (P) Ltd. 2008-2009 29.12.2010 30.06.2011 05.11.2013 9. 17/CTK/14 Yazdani International (P) Ltd. 2008-2009 29.12.2010 30.06.2011 05.11.2013 3. Since the issues involved in all the appeals are identical to each other, except different in figure, therefore, with the consent of both the parties, all the appeals are heard analog ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax Department on 28.05.2008 in the office premises and residential premises of the M/s Serajuddin Co. Groups along with in the case of the assessee. The assessee is the one of the principal assessees of the group. During the course of search operation, various documents, books of account etc. were found and seized. Accordingly, notice u/s.153A(a) of the I T Act, 1961 was issued on 05/03/10 through RPAD, which was duly served upon the assessee but the assessee did not file his return of income for the assessment year 2008-2009 in compliance with the notice. The findings recorded by the AO in the quantum order are as under :- On 10/03/10 assessee asked for extracts of the seized material and same was provided to the assessee. Further assessee was requested on 29/06/10 to file his return of income, assessee did not turned up. A notice U/s 142(1) alongwith detail questionnaire was send to the assessee on 28/07/10 and date of compliance was fixed on 12/08/10. On said date assessee did not comply with the questionnaire rather he challenged the authority of Joint Director of Income Tax to issue the warrant. Assessee was informed that Joint Di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee on dtd. 13/10/10. To make a fair, reasonable and justified calculation of the income of the assessee, information were called for from various departments and authorities, such as, TDS returns filed by the concern in which assessee is a director/member/partner, Bank Statements, information from various Mutual funds and Insurance policies. Along with that the seized/impounded documents were also used for the assessment. During the course of search and seizure action, ₹ 6.50 crores worth of bank fixed deposits and other investment papers have been seized from the residence of the assessee as they were found not accounted for. The deposits had been made in the name of the assessee and several family members who had no sources of income to speak of. Thus, the entire amount of the investments are sourced from the assessee and hence, the source of the same being unexplained the same are treated as unexplained and concealed income in the hands of the assessee. Addition : ₹ 6,50,00,000/- During the course of search operation it is found that assessee was maintaining a bank account in Bank of India, Jhumpura Bra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee nor the A.R. of the assessee appeared. Another opportunity was also given to assessee on 02.06.2011 fixing the date for hearing on 13.06.2011. On 13.06.2011 assessee submitted a written submission that as the assessee has gone for an appeal before the CIT(A)-I, Bhubaneswar therefore all the penalty proceedings may be kept in abeyance. When calling for a return u/s.153A(a) of the Act in a search case, the provision of this act shall so far as apply , as if it required under subsection (1) of Section 139 of the I. T.Act, 1961. As the assessee failed to furnish a return, he is liable to penalty of ₹ 5,000/- u/s.271F and accordingly, an amount of ₹ 5,000/- is imposed as penalty u/s.271F of the I.T.Act,1961. Issue copy of the order and Demand Notice to the assessee. Sd/- (Tarun Jarwal) Asst. Commissioner of Income-tax, Circle.-1(2), Bhubaneswar. 6. Feeling aggrieved from the penalty order, the assessee appealed before the CIT(A) taking various grounds and the CIT(A) dismissed the appeal of the assessee for assessment year 2008-2009 after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act does not empower to the AO for imposing penalty u/s.271F of the Act, therefore, penalty is illegal. Ld. AR further submitted that penalty is not a mandatory; however, it is a directory. He further submitted that there was a reasonable cause u/s.273B of the Act for immunity provided u/s.273B of the Act containing reasonable cause in which penalty cannot be imposed. Ld. AR also placed reliance on the decision of Hon ble Patna High Court in the case of Lal Saraf Vs. State of Bihar Anr., [1999] 235 ITR 116(Patna), copy of which is placed on record. 9. On the other hand, ld. DR relied on the order of AO and he submitted that the lower authorities were justified to impose the penalty u/s.271F of the Act. He further submitted that the assessee has never filed return of income till the completion of assessment. It is clear from the order of assessment that the assessee was provided sufficient opportunities to comply the notice issued by the AO and all the documents were also provided to the assessee which was impounded during the course of search and seizure operations, therefore, the assessee cannot take the shelter of the letters produced before the Bench on 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of authorized person and again on 31.08.2010 a letter was also written to the assessee and belonging to the search group stating that if any document is left out please do intimate to the office and take the extract but no any letter was received from the assessee s side except in case of Aliza International Pvt. Ltd. The AO again fixed the case on 11.10.2010 for taking extract of the seized CDs/hard discs but no one was turned up on the said date for taking the extracts. The AO completed the assessment u/s.144 of the Act after calling information from the various related transactions/parties and it was also noticed that in the name of assessee the bank had paid interest to the tune of ₹ 4,77,141/- on fixed deposits. We also perused the letters produced before us by the ld. AR of the assessee dated 02.08.2010 which has been given in case of M/s Seirajuddin Co. bearing PAN ABIFS 3758 G. The letter has not been furnished by the assessee in the individual capacity and we also noticed difference in dates mentioned in the letter submitted before us regarding notice u/s.142(1) of the Act. The AO has mentioned the date in his order as 28.07.2010 whereas the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 132 or books of account, other documents or any assets are requisitioned under section 132A after the 31st day of May, 2003, the Assessing Officer shall- (a) issue notice to such person requiring him to furnish within such period, as may be specified in the notice, the return of income in respect of each assessment year falling within six assessment years [and for the relevant assessment year or years] referred to in clause (b), in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139; 11. Further Section 271F of the Act empowers the AO to levy penalty for a sum of ₹ 5000/- if a person fails to file his return of income within the stipulated time. For more clarity, we would like to reproduce the provisions of Section 271F of the Act, which read as under :- [Penalty for failure to furnish return of income. 271F. If a person who is required to furnish a return of his income, as required ..... X X X X Extracts X X X X X X X X Extracts X X X X
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