DURGESH VANIJYA PVT. LTD.,KOLKATA vs. I.T.O., WARD - 3(1), KOLKATA, KOLKATA

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ITA 71/KOL/2023Status: HeardITAT Kolkata13 March 2023AY 2013-20144 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal decided to delete the penalty imposed under Section 271(1)(b). This was due to the introduction of the National Faceless e-Assessment, which might have caused procedural difficulties for the assessee in understanding and complying with the notices.

What were the facts?

The assessee company failed to comply with statutory notices issued under Section 142(1) by the Assessing Officer for Assessment Year 2013-14. Consequently, a penalty was imposed under Section 271(1)(b) for non-compliance.

What were the issues?

Whether the penalty under Section 271(1)(b) for non-compliance with statutory notices is justified, considering the introduction of the faceless assessment regime and potential procedural challenges for the assessee.

Which sections of the Income-tax Act were involved?

Section 142(1),Section 271(1)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, KOLKATA

Before: Shri Rajpal Yadav, Vice-(KZ) & Shri Girish Agrawal

Per Rajpal Yadav, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 29.11.2022 passed for A.Y. 2013-14.

1.

Assessment Year: 2013-2014 Durgesh Vanijya Pvt. Limited 2. The solitary grievance of the assessee is that the ld. CIT(Appeals) has erred in confirming the penalty of Rs.30,000/- imposed by the ld. Assessing Officer under section 271(1)(b) of the Income Tax Act on account of non-compliance of the assessee of statutory notices dated 09.02.2021, 19.02.2021 and 17.08.2021.

3.

In response to the notice of hearing, a Clerk from the Office of the Tax Consultant appeared for seeking adjournment. However, we do not find any reason to grant an adjournment and proceed to decide the appeal of the assessee.

4.

With the assistance of ld. D.R., we have gone through the record carefully. A perusal of the assessment order would reveal that ld. Assessing Officer has reproduced the details of notices and their non-compliance. Such details reflected as under:- “Further, the case was transferred to the National e- Assessment Center under FAS and thereafter, various notices were issued to the assessee from time to time which are listed as under:- Sr. No. Notice Details Date of issue Due Date of compliance 1. Notice u/s 19.02.2021 23.02.2021 142(1) 2. Notice u/s 09.02.2021 12.02.2021 142(1) 3. Notice u/s 17.08.2021 23.08.2021 142(1) Assessment Year: 2013-2014 Durgesh Vanijya Pvt. Limited However, the assessee company has not made compliance any of the above notices. In view of this, penalty proceedings u/s 271(1)(b) of the I.T. Act, 1961 are being initiated separately for non- compliance to the statutory notice as listed above”.

5.

The assessee thereafter submitted necessary details in reply to notice dated 12.09.2021. It is pertinent to observe that National Faceless e-Assessment was introduced for the first time and in the case of this assessee must be the first assessment. Therefore, there may be certain issues for service of notice upon the assessee, difficulty in submission of the replies and understanding of the assessee of the procedure required to be followed by it.

6.

Considering the above, we deem it appropriate to delete the penalty imposed upon the assessee under section 271(1)(b) of the Income Tax Act.

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