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TMI Blog2023 (6) TMI 382X X X X Extracts X X X X X X X X Extracts X X X X ..... delete the penalty levied by the AO u/s 271 (1)(b). Assessee appeal allowed. - ITA Nos. 4433/Del/2014, 4434/Del/2014, 4435/Del/2014, 4436/Del/2014, 4437/Del/2014, 4438/Del/2014 and 4439/Del/2014 - - - Dated:- 12-5-2023 - Sh. C. M. Garg, Judicial Member And Dr. B. R. R. Kumar, Accountant Member For the Assessee : Sh. Rohit Jain, Adv. Ms. Deepanshree Rao, Adv. For the Revenue : Mohd. Gayasuddin Ansari, CIT DR ORDER Per Dr. B. R. R. Kumar, Accountant Member : The present appeals have been filed by the assessee against the orders of ld. CIT(A)- III, New Delhi dated 12.05.2014. 2. Since, the issue involved in all these appeals are similar, they were heard together and being adjudicated by a common order. 3. In ITA No. 4433/Del/2014, the assessee has raised the following grounds of appeal: 1. That the Commissioner of Income Tax (Appeals) erred on facts and in law in not holding that the impugned order dated 01 .10.2013, levying penalty under section 271 (1)(b) of the Income-tax Act, 1961 ( the Act ) is without jurisdiction, illegal and bad in law. 2. That the Commissioner of Income Tax (Appeals) erred on facts and in law in upholding the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n- taxable item is taxed or a permissible deduction is denied, we do not see any reason why the assessee should be prevented from raising that question before the tribunal for the first time, so long as the relevant facts are on record in respect of that item. We do not see any reason to restrict the power of the Tribunal under Section 254 only to decide the grounds which arise from the order of the Commissioner of Income- tax (Appeals). Both the assessee as well as the Department have a right to file an appeal/ cross- objections before the Tribunal. We fail to see why the Tribunal should be prevented from considering questions of law arising in assessment proceedings although not raised earlier. 6. In the case of Jute Corporation of India Ltd. v. C.I.T. this Court, while dealing with the powers of the Appellate Assistant Commissioner observed that an appellate authority has all the powers which the original authority may have in deciding the question before it subject to the restrictions or limitations, if any, prescribed by the statutory provisions. In the absence of any statutory provision, the appellate authority is vested with all the plenary powers which the subordinate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice. During the course of assessment proceedings, a notice u/s 142(1) was issued to the assessee on 15.07.2013 seeking certain information/ documents from the assessee relating to his foreign bank accounts and consequently the assessee did not file the requisite consent letter vide notice u/ s 142 (1). Consequently, a show- cause notice was issued to the assessee on 26.09.2013 for imposing penalty u/ s 271(1)(b). In response to the notice u/ s 142(1), the assessee vide his letter dated 30.09.2013 reiterated the same facts as were mentioned in his letter dated 24.07 .2013. Upon such failure, the AO imposed the penalty of Rs. 10,000/- u/s 271(1)(b) for non- compliance of information being sought u/s 142(1). 8. Aggrieved, the assessee filed appeal before the ld. CIT(A) who confirmed the penalty order of the Assessing Officer levying the penalty u/s 271(1)(b) and then the assessee filed appeal before ITAT. 9. The complete background of the issue is as under : 9.1. In April/ May, 2011 Government of India received information from a Foreign Government under the Double Taxation Avoidance Agreement (DTAA), that certain Indian passport holders have opened and had maintained bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... comply with notices under section 142 (1) or under section 143(2). The penal provisions contained in Chapter XXI relevant to enforcement of sections 142 /143 are Sections271 and 272A. The ld. CIT(A) held that in the facts of the present case there was a information the appellant is engaged in suspected tax evasion by transferring or keeping funds overseas in an illicit manner. The appellant is suspected of having opened and maintained undisclosed bank account overseas and was required to sign the consent form to verify the allegation. The ld. CIT(A) held that mere signing of the consent form does not cause any jeopardy to the appellant - if his denial of having opened any bank account is correct he has nothing to worry. But refusal to sign the consent form tantamounts to refusal to join the investigation. The ld. CIT(A) held that the purpose of the penal provision contained in section 271(1)(b) is to ensure compliance to tax investigations and since the assessee having failed to sign the consent form , and having no reasonable cause to do so, has violated the said provision. 10. Thus, the issue before us is, whether the revenue is correct in levying penalty u/ s 271(1)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 37, it was held that the has offered Rs.5 .8 Cr. to tax in the A.Y. 2012-13 and the same was treated to be taxed on substantial basis and the addition made in the earlier years on protective basis has been deleted. The additions made by the AO for the earlier years has been deleted. The Hon'ble High Court vide order dated 22 .02.2021 in ITA No. 48 to 54 /2021 has affirmed the above order of the Tribunal. Thus, the due taxes have been paid by the assessee and collected by the revenue. The similar issue of levy of penalty u/ s 271(1)(b) for not signing the concerned form has been deleted by the Co-ordinate Bench of Tribunal in the case of Shyam Sunder Jindal vide order dated 28.02 .2017 in ITA No. 6425 6426/Del/2015. Further, the Hon'ble High Court of Madras in case of CIT Vs. V. V. Venkatataramiah (11 ITR 308) held that the penalty cannot be levied if there is a reasonable cause. The Hon'ble Apex Court in the case of Hindustan Steel Ltd. (83 ITR 26) held 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 p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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