AMAR LIQUORS,LUCKNOW vs. DCIT/ACIT-3, LUCKNOW

ITA 741/LKW/2025Status: DisposedITAT Lucknow30 June 2026AY 2022-2317 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that penalty provisions are not meant to punish every technical breach. Since the assessee showed reasonable cause for non-compliance and the Revenue failed to prove willful default, the penalty was deleted. The Tribunal also noted procedural defects regarding the notice under section 143(2).

What were the facts?

The assessee failed to comply with statutory notices issued under sections 143(2) and 142(1) during assessment proceedings. Consequently, a penalty was levied under section 272A(1)(d). The assessee argued that the notices were not duly served and the non-compliance was not deliberate.

What were the issues?

Whether penalty under Section 272A(1)(d) is sustainable for non-compliance of notices when reasonable cause is shown and whether there were procedural defects in levying the penalty.

Which sections of the Income-tax Act were involved?

Section 272A(1)(d),Section 143(2),Section 142(1),Section 273B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH “A”, LUCKNOW

Before: SHRI KUL BHARAT & SHRI ANADEE NATH MISSHRA

For Appellant: Shri P. K. Kapoor, C.A
For Respondent: Dr. Preeti Singh, Addl CIT(DR)

PER KUL BHARAT, VICE PRESIDENT.:

This appeal, by the assessee, is directed against the order of the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi dated 12.08.2025, pertaining to the assessment year 2022-23. The assessee has raised the following grounds of appeal: -

“1. BECAUSE on the facts and in the circumstances of the case, the Id. "CIT(A)" was not justified in confirming the penalty of Rs. 40,000/- levied by the Assessment Unit, Income-tax Department, Delhi, u/s 272A(l)(d) of the Act for alleged non-compliance of notice u/s 143(2) and notices u/s 142(1) of the Act.

2.

BECAUSE while confirming the levy of penalty, the Id. "CIT(A)" failed to appreciate the submiss

The order continues below.

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