AJANTA EDUCATIONAL CENTRE,AMRITSAR vs. INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI

ITA 1007/CHANDI/2026Status: DisposedITAT Chandigarh09 September 2026AY 2016-20175 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that while there was a technical default, the subsequent compliance and completion of assessment under Section 143(3) established reasonable cause. Therefore, the penalty was not sustainable.

What were the facts?

During assessment proceedings, the assessee failed to comply with a notice under Section 142(1) within the stipulated time. However, the assessee subsequently participated in the proceedings, and the assessment was completed under Section 143(3).

What were the issues?

Whether a penalty under Section 271(1)(b) can be sustained despite subsequent compliance and completion of assessment under Section 143(3), and if reasonable cause existed for the initial default.

Which sections of the Income-tax Act were involved?

Section 142(1),Section 271(1)(b),Section 273B,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, =

Before: SHRI LALIET KUMAR

For Respondent: Shri Vivek Vardhan, Addl. CIT, Sr.DR
Hearing: 08.09.2026Pronounced: 09.09.2026

This appeal is directed against the order of the learned CIT(A), NFAC, dated 02.04.2026 passed for assessment year 2016- 17 whereby the learned CIT(A) confirmed the penalty of Rs.10,000/- levied by the Assessing Officer under section 271(1)(b) of the Income-tax Act, 1961. 2. The assessee has challenged the levy of penalty under section 271(1)(b), contending that the penalty order was contrary to the facts and circumstances of the case and that the assessee had duly complied with the statutory notices issued during the assessment A.Y.2016-17 2 proceedings. The assessee also pleaded that there was reasonable cause for the alleged default.

3.

The facts of the case

The order continues below.

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