9911796707
TMI Blog2022 (12) TMI 1223X X X X Extracts X X X X X X X X Extracts X X X X ..... 0.03.2019. Since all the appeals relate to assessee belonging to one group called Rich Udyog Network and facts are identical, arising out of common order of Ld. CIT(A), we dispose of all the appeals by this consolidated order for the sake of convenience, taking ITA No. 292/LKW/2020 as the lead case and the result of which will be applied mutatis mutandis in all the remaining appeals. 2. Assessee has taken as many as nine grounds in the appeal challenging the levy of penalty of Rs. 10,000/- u/s. 271(1)(b) of the Act for each of the seven years involved, respectively. 3. Brief facts of the case are that a survey u/s. 133A was carried out on 28.04.2015 at the office of Rich Udyog Network Ltd. and other concerns belonging to Rich Udyog Networ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2018. Ld. AO passed the assessment order on 24.08.2018 u/s. 144 r.w.s. 153A of the Act by making various additions. Thereafter, Ld. AO issued notice u/s. 271(1)(b) of the Act to show cause as to why a penalty should not be levied against which assessee filed its submission dated 26.09.2018 requesting the Ld. AO to keep the penalty proceeding in abeyance until the disposal of appeal filed before the Ld. CIT(A)-IV, Kanpur against the assessment order. Ld. AO without taking into cognizance of the request of keeping the penalty proceeding in abeyance, proceeded to complete the penalty proceeding by levying a penalty of Rs. 10,000/- u/s. 271(1)(b) of the Act. Aggrieved, assessee went in appeal before the Ld. CIT(A), who confirmed the action of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of statutory requirements u/s. 142(2A) of the Act. Ld. CIT(A) also noted that imposition of penalty u/s. 271(1)(b) of the Act is not qua assessment and is not dependent upon the outcome of the assessment. He is of the view that the conduct of assessee shows that he is non-cooperative to the authorities and thus, dismissed the appeal of the assessee. Aggrieved, the assessee is in appeal before the Tribunal. 5. Before us Shri Rakesh Garg, Advocate represented the assessee and Shri Amit Nigam, CIT, DR represented the revenue. 6. Ld. Counsel for the assessee, at the outset, placed on record, copies of order sheet of the assessment proceeding to demonstrate the existence of reasonable cause which prevented the assessee in complying with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us. Before adverting on the issue, we appraise ourselves with the relevant provisions of law which are reproduced hereunder: "271(1) If the Assessing officer or the Commissioner (Appeals) or the Principal Commissioner or Commissioner in the course of any proceedings under this Act, is satisfied that any person - (a)..... (b) has failed to comply with a notice (under sub-section (2) of section 115WD or under sub-section (2) of section 115WE or) under sub-section (1) of section 142 or sub-section (2) of section 143 (or fails to comply with a direction issued under sub-section (2A) of section 142) or..." he may direct that such person shall pay by way of penalty (i)..... (ii) In the cases referred to in clause (b), in addition to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s. 142A of the Act completed. We also note that the Ld. CIT(A) himself while noting down various principles relating to penalty imposition has stated in one of the points that onus was on the assessee to answer the charge of having failed to comply with the direction (extracted supra). 9.1. Ld. CI(A) also observed in para 9.2 that wordings of section 273B are explicit that a person who has failed to comply with the notice/direction must show reasonable cause for which onus is upon the assessee. We also take note of the observation made by the Ld. CIT(A) in respect of "reasonable cause" as mentioned in section 273B that "reasonable cause" as in law, prima facie meaning of reasonable with regards to those circumstances of which the actor, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal without getting ourselves influenced of the quantum proceedings pending before the Appellate Authority. The reason we assign for adopting such a course of action is the fact that order sheets of assessment proceedings placed before us evidently demonstrates existence of reasonable cause at the end of the assessee in terms of section 273B. 11. Considering the facts on record and entry in the order sheets of the assessment proceedings furnished by the Ld. Counsel, it is evidently demonstrated that there exists a reasonable cause within the meaning of section 273B of the Act which prevented the assessee in meeting the compliance requirement in respect of special audit u/s. 142(2A) of the Act. Assessee has discharged its onus to explai ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
