Penalty u/s 271(1)(b) not imposable as reasonable cause shown

Sh. Krishan Kumar Modi Vs ACIT (ITAT Delhi)

ITAT Delhi held that penalty u/s 271(1)(b) of the Income Tax Act not imposable as reasonable cause shown for non-furnishing of consent form sought by AO.

Facts- A search & seizure operation u/s 132 of the Income Tax Act, 1961 was carried out in the case of the assessee on 09.11.2011. Subsequently, notice u/s 153A of the Act was issued on 02.11.2012 to file return of income within 19 days from the service of notice.

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).

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). Being aggrieved, the present appeal is filed.

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