T.R. Senthil Kumar ORDER
T.R. Senthil Kumar, Member (J)
1. The present appeal has been filed by the Revenue against the order dated 17.10.2018 passed by the Commissioner of Income Tax (Appeals)-11, Ahmedabad quashing the penalty levied u/s. 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year (A.Y) 2010-11.
2. The brief facts of the case is that the assessee is a Limited Company engaged in Trading in Agro - Commodities. The department was in possession that During the previous year relevant to the Assessment Year 2010-11, the assessee received interest income of Rs. 7,58,122/- on which TDS of Rs. 1,16,814/- was deducted. However the assessee has not offered this income and not even filed the Return of Income for the relevant Assessment Year 2010-11. Therefore the case was reopened by issuing a notice u/s. 148 of the Act on 29.11.2013 which was duly served on the assessee. However the assessee did not file the Return of Income in response to the 148 notice. The assessee was issued with 142(1) notice and other notices, summons for 14th times between 17.07.2013 to 10.02.2015, in spite of proper service of notices, the assessee has not attended the hearing.
2.1. Only in the 15th hearing namely 12.03.2015 the Authorized Representative submitted the computation of total income for the Assessment Year 2010-11, along with the copy of balance sheet and Form No. 3CA and 3CD however Return of Income was not filed. After perusal of Balance Sheet, Tax Audit Report a show cause notice was issued on 12.03.2015, why the assessment proceedings not be completed invoking the provisions of Section 144 of the Act. The Assessee Representative submitted that due to financial difficulties and non-payment of self assessment tax, the company failed to file Return of Income.
2.2. Further one of the Director of the company was under judicial custody so that they failed to arrange the funds and Return of Income was not filed. On perusal of the Statement of Income and Tax Audit Report revealed during the assessment year, the assessee company has shown turnover of Rs. 62,19,74,159/- and other income of Rs. 1,29,97,313/- and profit of Rs. 1,59,18,716/- is derived before tax. The Assessing Officer made a disallowance of Rs. 1,86,710/- on account of Section 40(a)(ia) of the Act. Thus determined the assessed income as Rs. 1,68,10,620/- u/s. 144 r.w.s. 147 of the Act and also charged interest of u/s. 234A, 234B, 234C and 234D of the Act. The Assessing Officer also initiated penalty proceedings u/s. 271(1)(c) as the assessee company has concealed its income and has not offered the same for taxation and issued penalty notice u/s. 271B of the Act for not getting audited its books of account. The A.O. also issued penalty notice under 271F of the Act for not filing the Return of Income for the Assessment Year 2012-13 within the prescribed time limit u/s. 139(1) of the Act. The Ld. A.O. also levied minimum penalty u/s. 271(1)(c) of Rs. 57,13,930/- for the assessee willfully and deliberately concealed the income by not filing the Return of Income. Following th........