Case Law Details
Young Indian Vs ADIT (ITAT Delhi)
It is the submission of the ld. counsel for the assessee that the provisions of section 131(1) and provisions of section 131(1A) are different and since the provisions of section 272A(1)(c) prescribe levy of penalty for non-compliance to provisions of section 131(1) only and since there is no provision in the Income Tax Act for levy of penalty for non-compliance under the provisions of section 131(1A) of the I.T. Act, therefore, the ld. CIT(A) was not justified in confirming the penalty so levied by the ADIT (Investigation). It is also his submission that since all the details as called for by the ADIT (Investigation) are already available either in the records of the Income Tax Department or in the Website of the Ministry of Corporate Affairs, therefore, there was a reasonable cause on the part of the assessee for non-submissions of the same as those details would have gone to the hands of the political opponents for mis-utilize of the same.
We do not find any merit in the above arguments of the ld. counsel for the assessee. So far as argument of the ld. counsel for the assessee that provisions of section 131(1) and 131(1A) are different, there is no dispute to the same. However, as per the provisions of section 131(1A) for the purpose of making any enquiry or investigation relating thereto it shall be competent for the officer to exercise the powers conferred under sub-section (1) on the Income Tax Authorities referred to in that sub-section. Therefore, the provisions of section 131(1A) has to be read along with the provisions of section 131(1) of the I.T. Act. Therefore, the consequences for failure to furnish the requisite details will be the same as prescribed u/s 272A(1)(c) of the I.T. Act, 1961.
We find from the record that there was a deliberate defiance on the part of the assessee for non-submission of the same under the pretext that some of the details are available in the records of the Income Tax Department or some of the details are available in the Website of the Ministry of Corporate Affairs. In our opinion, no prejudice would have been caused to the assessee by submitting the details as called for by the ADIT (Investigation), as per the summons u/s 131(1A) if those details are already available in the records of the I.T. Department or in the website of the Ministry of Corporate Affairs. The conduct of the assessee in the instant case, in our opinion, is not at all bona-fide. We, therefore, do not find any merit in the argument of the ld. counsel for the assessee on this issue. In view of the above discussion, the order of the ld. CIT(A) in confirming the penalty of Rs.10,000/- levied u/s 272A(1)(c) is upheld.
FULL TEXT OF THE ITAT JUDGMENT
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