9911796707
TMI Blog2023 (7) TMI 556X X X X Extracts X X X X X X X X Extracts X X X X ..... inafter referred to as "the Act" for short] for the Assessment Year (AY) 2014-15. 2. The grounds raised by the assessee are as under:- "1. Ld. CIT(A) erred in law as well as on facts in confirming the penalty u/s 271(1)(b) of the Income-tax Act, 1961 of Rs. 50,000/-. 2. Ld. CIT(A) erred in law as well as on facts in passing the appellate order u/s 250 of the Act without considering submission made by the appellant during the physical hearing before local jurisdictional CIT(A). 3. Ld. CIT(A) erred in law as well as on facts in contending that the appellant had not made any submission. 4. Ld. CIT(A) erred in law as well as on facts in passing the appellate order in haste." 3. Penalty under Section 271(1)(b) of the Act was levied for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed submissions in writing and, referring to the same, he pointed out that the ld. CIT(A) had wrongly noted that the assessee had not co-operated in the appellate proceedings. His contention was that, earlier, the hearing before the ld. CIT(A) was being done in physical manner and was thereafter transferred to the faceless regime with the National Faceless Appeal Centre (NFAC) finally passing the order under Section 250 of the Act. His contention was that during the course of physical hearing before the ld. CIT(A), the assessee had complied to the notices and had filed submissions also before him; but they were not considered by the order passed by the NFAC. As evidence, the copies of the reply filed to the ld. CIT(A) was filed before us and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... started to experience critical liquidity crunch since F. Y. 2014-15. 1.3.2 The appellant-company, therefore, closed down the business in F.Y. 2014-15 1.3.3 Since, the salary was also not possible to pay, all the staff have left the appellant-company. 1.3.4 The accounting data was also erased by the accounting staff of the appellant-company while leaving the job, as the salary was unpaid for long time. 1.3.5 The cheques issued by the appellant-company were also returned by the banker for want of sufficient fund. 1.3.6 The creditors were also .remained overdue and the payment was also not being made to them and hence they have also initiated legal proceedings against the directors of the appellant-company. 1.3.7 Several complains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the above that right from 03/08/2015 the appellant has been facing lot of pressure of criminal proceedings. The ultimate bail was granted on 23/12/2016. It may please be appreciated that the dates of default also fall in the said tenure only. 1.5 During the course of the assessment proceedings the AR of the appellant has furnished details on more than one occasion viz. vide letter dated 22/07/2015, 11/01/2016 and again on 04/03/2016. The appellant has filed various details through these letters viz. shareholding details, return of income of all sister concerns, bank statements, fixed assets details, TDS details and returns, GP details, expenditure ledgers etc. Thus, the appellant made level best efforts to comply to the notices and sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer for which the penalty was levied amounting to Rs. 50,000/- and taking note of the evidences also filed by the assessee, we find that there were sufficient reasons with the assessee for non-compliance with the notices. The notices, which were listed by the Assessing Officer as remaining uncomplied with by the assessee, pertained to the period June 2016 to November 2016. The assessee has adduced evidences before us showing that during this period there were FIRs lodged against the Directors of the company and they had moved anticipatory bail application before the Sessions Court which was rejected and the assessee had moved to the High Court - both Hon'ble Bombay High Court and Hon'ble High Court of Gujarat. The assessee sur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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