GULSHANBANU SABIRBHAI SHAIKH,AHMEDABAD vs. ITO, WARD-3(2)(7), AHMEDABAD

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ITA 1377/AHD/2018Status: DisposedITAT Ahmedabad20 January 2020AY 2013-143 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the AO was justified in invoking Section 271(1)(b) due to the assessee's chronic non-compliance and failure to provide any reasonable cause. No interference with the CIT(A)'s order was warranted.

What were the facts?

The assessee failed to comply with multiple notices issued by the Assessing Officer (AO) during assessment proceedings. Consequently, the AO passed a summary assessment under Section 144 and imposed a penalty under Section 271(1)(b) for non-compliance.

What were the issues?

Whether the penalty imposed under Section 271(1)(b) for non-compliance with statutory notices is justified when the assessee fails to provide a reasonable cause.

Which sections of the Income-tax Act were involved?

Section 144,Section 271(1)(b),Section 142(1),Section 143(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: SHRI PRADIP KUMAR KEDIA & SHRI MAHAVIR PRASAD

For Appellant: Shri Varis Isani, A.R, Shri Vidhyut Trivedi, Sr. D.R

आदेश/O R D E R

PER PRADIP KUMAR KEDIA - AM:

1.

The captioned appeal has been filed at the instance of the assessee against the order of the Commissioner of Income Tax (Appeals)-3, Ahmedabad (CIT(A)’ in short), dated 16.03.2018 arising in the penalty order dated 13.10.2016 passed by the Assessing Officer (AO) under s. 271(1)(b) of the Income Tax Act, 1961 (the Act) concerning AY 2013-14.

2.

As per the captioned appeal, the assessee has challenged imposition of penalty of Rs.10,000/- under s. 271(1)(b) of the Act on account of alleged noncompliance of notices issued by the AO in the course of assessment proceedings.

3.

It is noticed from the assessment records that assessee was a chronic defaulter before the AO and never attended before the AO despite several six notices issued from time-to-time. The AO accordingly passed summary assessment under s.144 of the Act and also invoked the provisions of Section 271(1)(b) of the Act for noncompliance of statutory notices issued under s.142(1)/143(2) of the Act. The penalty was imposed at Rs.10,000/- for one instance of such failure. The assessee could not furnish any satisfactory answer for such gross act of noncompliance. No reasonable cause has been shown either before the AO or before the CIT(A) for such continue default and more particularly in response to notice issued under s.142(1) of the Act dated 26th June, 2016 served upon the assessee.

The AO, in our view, cannot be faulted to invoke the provisions of Section 271(1)(b) of the Act in respect of such recalcitrant assessee.

In the absence of any cause shown before us which prevented the assessee from comply with the statutory notices, we do not see any perceptible reason to interfere with the order of the CIT(A).

4.

In the result, the appeal filed by the assessee is dismissed.

This Order pronounced in Open Court on 20/01/2020

Sd/- Sd/- (MAHAVIR PRASAD) (PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad: Dated 20/01/2020 True Copy S. K. SINHA आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाइल / Guard file. By order/आदेश से,

उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद ।

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