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ITA Nos.3652 to 3654/Del/2017

4. As the assessee was using two PANs, one for the filing of return of income and other for operating Axis Bank purpose, therefore, penalty proceedings u/s 272B(2) were also initiated while passing the assessment order. In order to finalize the above penalty proceedings, show cause notice was issued to the assessee. The assessee's AR filed reply vide letter dated 07.05.2015 stating that the penalty proceedings may kindly be kept in abeyance till the disposal of appeal. Vide show cause notice dated 18.06.2015, the assessee was informed by the Assessing Officer that the penalty proceedings u/s 272B(2) were not being considered for stay till the decision of CIT(A)'s order. The assessee was asked to file the explanation by 28.06.2015. The assessee did not file any explanation with regard to penalty proceedings u/s 272B(2) of the I.T. Act and hence it was presumed that the assessee had nothing to say in the matter. Moreover, the assessee company had not requested to delete the second PAN. In view of the above, the Assessing Officer came to the conclusion that assessee by non-complying the notices issued and duly served upon it, attracted the provisions of the section 272B(2) of the IT. Act. He accordingly levied penalty of Rs.10,000/- for assessment years 2009-10 to 2011-12 by passing a combined order.

5. The assessee filed appeal against the order passed by the Assessing Officer levying penalty of Rs.10,000/- u/s 272B(2). The ld. CIT(A) noted that the appeals were fixed for hearing on several occasions right from January, ITA Nos.3652 to 3654/Del/2017 2016 and the AR was seeking repeated adjournments. In the meantime, the quantum appeals were decided wherein the facts relating to the use of two PANs by the assessee came to light. The CIT(A), therefore, issued an enhancement notice to the assessee asking as to why the penalty of Rs.10,000/- each for each assessment year should not be levied. The assessee in response to the same submitted that it was not using PAN AABCJ0858R and was using PAN AAACG4345G and filed the income-tax return with PAN AAACG4345G regularly. It was submitted that the Assessing Officer was requested to update the PAN record of the company and drop the income-tax proceedings of PAN AABCJ0858R. The assessee also filed a letter from the Axis Bank that it was using only PAN AAACG4345G. It was further stated that the assessee is bona- fide and has not concealed the income for the assessment year 2009-10 to 2011-12.

45,07,500/- had been made into this bank account in A.Ys 2010-11 & 2011-12 respectively. The assessee company was holding two PANs and had used different PANs for different purposes. For the purpose of aforesaid bank account, it had used the PAN AABCJ0858R, whereas for filing ITRs it had used the PAN AAACG4345G. The assessee had been asked to explain the source of cash deposit in the bank account in the reopened assessments pertaining to the above years. In spite of many opportunities provided to the assessee, it had not explained the source of cash deposited nor produced complete books of account. Neither had the assessee furnished any documentary evidences in this regard, leading the AO to complete the assessment u/s 144. During appellate proceedings, the appellant claimed that the bank has been informed and had updated the correct PAN of the appellant as AAACJ4345G as on 3.11.2016. However, it was found that the veracity of this claim was to be doubted as the said letter of the bank did not mention the name and designation of person issuing the letter or indicate whether he had signed as the authorized signatory of the bank.

9. Ld. DR on the other hand heavily relied on the order of the CIT(A). He submitted that the assessee without any valid reason was using two PAN Numbers and, therefore, the CIT(A) was fully justified in enhancing the penalty.

10. I have considered the rival arguments made by both the sides, perused the orders of the ld. Assessing Officer and the CIT(A) and Paper Book filed on behalf of the assessee. The provisions of section 272B(2) read as under :-

"Penalty for failure to comply with the provisions of section 139A.