INCOME TAX ACT, 1961

Section 272A(2)(c)

Penalty under section 272A(2)(c) - Non-furnishing of information - Whether ITO (TDS) eligible for issuing notice under section 133(6) -

ITO (TDS) issued notice under section 133(6) to assessee seeking for details of persons to whom interest payment exceeding Rs. 10,000 was made by assessee for the specified period. Assessee submitted that ITO (TDS) was not an authority to call for information under section 133(6). Revenue levied penalty under section 272A(2)(c). Assessee challenged this. Held: Powers under section 133(6) are in the nature of survey and a general enquiry to identify persons who are likely to have taxable income and whether they are in compliance with provisions of the Act. It would not fall under restricted domains of being 'area specific' or 'case specific'. Section 133(6) does not refer to any enquiry about any particular person or assessee, but pertains to information in relation to 'such points or matters' which the assessing authority issuing notices requires. This clearly illustrates that information of general nature can be called for. In the instant case, by impugned notice ITO (TDS) seeking for details of persons to whom interest payment exceeding Rs. 10,000 was made by assessee for the specified period, without reference to any proceeding or enquiry pending before any authority under the Act. Admittedly, notice was issued only after obtaining approval of CIT and in the light of this ITO (TDS) had not erred in issuing notice to assessee. Admittedly, assessee had been absolutely non-co-operative in any of the proceedings. it had not shown as to whether even after proceedings had been initiated, the information had been submitted or whether TDS had been deducted subsequently. Other than filing appeals and not representing the same, nor giving explanation in respect of the grounds raised only delay tactics were being adopted. No reasonable cause had also been shown. This being so penalty levied was justified.

Followed:Kathiroor Service Co- Operative Bank (2014) 360 ITR 243 (SC) : 2014 TaxPub(DT) 176 (SC).

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2015-16

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