PARESH HASMUKH PATEL,AHMEDABAD, GUJARAT vs. INCOME TAX OFFICER, WARD 7(2)(1), AHMEDABAD, AHMEDABAD, GUJARAT

ITA 2535/AHD/2026Status: DisposedITAT Ahmedabad10 September 2026AY 2016-174 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee's response to multiple notices and appearance in hearings indicated substantial compliance. Failure to respond to only two notices, especially when the assessee claimed to be out of town, did not warrant the penalty, and Section 273B could be applied.

What were the facts?

The assessee failed to respond to two statutory notices issued under Section 142(1) during assessment proceedings. The CIT(A) confirmed the penalty under Section 271(1)(b) because the assessment was completed under Section 147/144/144B, and the assessee's explanation of being out of town lacked supporting evidence.

What were the issues?

Whether penalty under Section 271(1)(b) is leviable for non-compliance with a few statutory notices when there was substantial compliance overall. Whether the assessee had reasonable cause under Section 273B for non-compliance.

Which sections of the Income-tax Act were involved?

Section 271(1)(b),Section 142(1),Section 273B,Section 147,Section 144,Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “A” BENCH

Before: Shri Tapas Ram Misra & Shri Gangadhar Panda

For Appellant: Shri Chetan Agarwal, A.R
For Respondent: Shri Amit Pratap Singh, Sr. DR

PER TAPAS RAM MISRA, JUDICIAL MEMBER:

The present appeal has been filed by the Assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (hereinafter referred to as “NFAC”), Delhi (hereinafter referred to as “CIT(A)”), dated 29.06.2026 passed under Section 250 of the Income Tax Act, confirming the levy of penalty under section 271(1)(b) of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) and relates to Assessment Year (A.Y.) 2016-17. I.T.A No. 2535/Ahd/2026 A.Y. 2016-17

2.

The decision of the Ld. CIT(A) is reproduced below: “5.1 Ground of appeal no. 1: In this sole ground of appeal the a

The order continues below.

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