Sanjay Dalmia Vs DCIT (ITAT Delhi)
Income Tax Appellate Tribunal (ITAT) Delhi, in its order dated October 5, 2017, for the case of Sanjay Dalmia (ITAs No. 3795 to 3801/Del/2014), confirmed the imposition of penalty under Section 271(1)(b) of the Income Tax Act. The penalty arose from the assessee’s failure to sign a consent waiver form sent with a notice under Section 142(1). The Assessing Officer (AO) had requested details of a specific bank account linked to the HSBC, alleging the account was associated with the assessee. The AO further asked for either the account details or a signed consent letter to obtain bank records. The tribunal noted that the Revenue had established a connection between the bank account and the assessee, including the involvement of family members as attorneys or account holders. However, the case raised some ambiguity as it remained unclear whether the document in question referred to an account with LGT Bank or HSBC Geneva. Despite these uncertainties, the tribunal held that the assessee’s non-cooperation justified the penalty. This case highlights the legal obligations of taxpayers to provide requested information during assessment proceedings, particularly when specific evidence points to potential undisclosed foreign assets.
FULL TEXT OF THE ORDER OF ITAT DELHI
