TABREJ ALAM,RANCHI vs. ITO, WARD-3(1), RANCHI

ITA 464/RAN/2024Status: DisposedITAT Ranchi28 July 2026AY 2016-173 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee had a reasonable cause for non-compliance due to the subsequent acceptance of returned income with no additions. Therefore, the penalty levied for non-cooperation during the original assessment proceedings was deleted.

What were the facts?

The assessee did not cooperate with the Assessing Officer (AO) during the original assessment proceedings, leading to an addition of long-term capital gains. Subsequently, the CIT(A) set aside the assessment, and the AO passed a revised order accepting the returned income with no additions. The assessee had also not filed a return of income initially.

What were the issues?

Whether penalty under Section 271(1)(b) for non-cooperation is sustainable when the subsequent set-aside assessment results in no addition and the assessee demonstrates reasonable cause.

Which sections of the Income-tax Act were involved?

Section 271(1)(b),Section 273

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI

Before: S/SHRI GEORGE MATHAN & RATNESH NANDAN SAHAY

For Appellant: Shri Debesh Poddar/M.K. Chowdhury, Advs
For Respondent: Shri Sandipan Khan, Sr. DR
Hearing: 28/07/2026Pronounced: 28/07/2026

Per Bench This is an appeal filed by the assessee against the order of the ld CIT(A), NFAC, Delhi dated 8.11.2024 in Appeal No.NFAC/2015-16/10307303 for the assessment year 2016-17 confirming the levy of penalty u/s.271(1)(b) of the Act.

2.

Shri Devesh Poddar and Shri M.K.Chowdhary,ld Ars appeared for the assessee and Shri Sandipan Khan, ld Sr DR appeared for the revenue.

3.

It was submitted by ld AR that in the quantum proceedings, ld CIT(A) has set aside the issue to the file of the Assessing Officer for readjudication and consequently the assessment order has also been passed on 29.1.2026, wherein,

P a g e 1 | 3 Assessment Year:2016-17

the Assessing Officer has accepted the returned inc

The order continues below.

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