Anurupa Pal
Published By: March 15, 2022 at 22:28 IST
The Delhi High Court has Upheld the Penalty issued under Income Tax Act, 1961.
The Assessee who had Failed to Fill the Consent-cum-Waiver Form to enable the Tax Authorities to obtain Information about the Alleged Swiss Bank Accounts held by it.
The Bench, consisting of Justices Manmohan and Sudhir Kumar Jain held that even if the Assessee had no connection with the Alleged Swiss Bank Accounts, no Prejudice would have been caused to her if she had complied with the Notice issued under Section 142(1) of the Income Tax Act and had filled the Consent Form.
The Counsel for the Assessee before the Delhi High Court had submitted that the Assessee Dalmia never held an Account in the Swiss Bank and that she was not Obliged to fill the said Consent Form as she had no connection with the said Bank Accounts.
The Counsel further submitted that asking the Assessee to Furnish a Consent Letter was Violation of Article 21 of the Constitution of India in view of the Judgement passed by the Supreme Court in Selvi & Ors. Vs. State of Karnataka (2010).
Section 142(1) of the Income Tax Act gives the Assessing Officer the power to Issue Notice to the Assessee to produce such Accounts or Documents as the Assessing Officer may require for the Purpose of Inquiry under the Act.
Section 271(1)(b) gives the Assessing Officer the power to Issue a Penalty on the Assessee who has failed to comply with the Notice Issued Under Section 142(1) of the Income Tax Act.
The Delhi High Court observed that in the Case of Sanjay Dalmia Vs. Principal Commissioners of Income Tax (2018), the Delhi High Court had Upheld the Penalty imposed Under Section 271(1)(b) of the Act which had arisen from the same search and Bank Account under consideration in the present Case and for the same reason of not having filled the Consent Form.
The High Court also observed that a Special Leave Petition against the said Order was Dismissed by the Supreme Court.
The High Court also observed that the Judgement passed by the Supreme Court in Selvi & Ors had no Application to the facts of the present case as the same had only Upheld the Principle of ‘Right of Silence’ in the context of Criminal Proceedings.
The High Court observed that even if the Assessee had no connection with the Swiss Bank Accounts, no Prejudice would have been caused to her if she had complied with the Notice Issued under Section 142(1) of the Act and had filled the Consent Form.
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