MANJIBHAI MAGANBHAI ASODIYA,PATAN vs. INCOME TAX OFFICER WARD 1, PATAN

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ITA 1431/AHD/2026Status: DisposedITAT Ahmedabad22 June 2026AY 2018-194 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the penalty order and restored the issue to the Assessing Officer for fresh adjudication. This was to allow verification of assessment records and consideration of the assessee's contentions regarding notice issuance and service.

What were the facts?

The assessee's appeal against a penalty order for non-compliance with notices was dismissed by the CIT(A). The original assessment order, which included a significant addition, had been set aside by the CIT(A) for fresh assessment.

What were the issues?

Whether the penalty for non-compliance with notices is sustainable when the underlying assessment order has been set aside and the method of notice service is disputed.

Which sections of the Income-tax Act were involved?

Section 272A(1)(d),Section 142(1),Section 147,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, C” BENCH, AHMEDABAD

Per Rahul Chaudhary, Judicial Member:

1.

The present appeal has been preferred by the Assessee against the Order, dated 23/02/2026, passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the ‘CIT(A)’] whereby the Learned CIT(A) had dismissed the appeal against the Assessment Order, dated 23/03/2023, passed under Section 147 read with Section 144 of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’] for the Assessment year 2018-2019. 2. The Assessee has raised the following grounds: 1. “Hon. CIT(A), NFAC had erred in confirming Penalty of Rs.10,000 levied by Ld. A.O. u/s 272A(1)(d) of the Act, on the ground that assessee has not given reasons for non-compliance of Notices issued by Ld. A.O.In as much as, assessee has replied for two times to Hon. CIT(A), NFAC in appellate proceedings u/s 272A(1)(d) of the Act.

2.

Hon. CIT(A), NFAC had erred in confirming Penalty of Rs.10,000 u/s 272A(1)(d) of the Act. Assessment Year: 2018-2019

In as much as, Assessee is staying at remote village of Aritha, Sami of Patan District and he did not have computer and internet facility at his place. As per E-Portal, Notices were not issued by Ld. A.O. on any mail id because assessee did not file the return. When there is continuance non-compliance of Notices issued by Ld. A.O., he should have served the Notices to assessee either by post or through Notice server.

3.

Hon. CIT(A), NFAC had erred in confirming penalty whereas the quantum appeal against the order of A.O. u/s 144 r.w.s 147 of the Act, had been set-aside by Hon. CIT(A), NFAC to Ld. A.O. for fresh assessment. The Penalty u/s 272A(1)(d) of the Act do not survive.”

3.

We have heard both the sides; considered the rival contentions and have perused the material available on record.

4.

The Assessee is aggrieved order of the Learned CIT(A) confirming the levy of penalty of INR.10,000/- under Section 272A(1)(d) of the Act for non-compliance of notice issued under Section 142(1) of the Act during the assessment proceedings.

5.

Perusal of record shows that an ex-parte Assessment Order, dated 23/03/2023, was passed by the Assessing Officer in the case of the Assessee for the Assessment Year 2018-2019 under Section 144 read with Section 147 of the Act making addition of INR.13,00,78,759/-. Since the Assessee had not responded to notices issued under Section 142(1) of the Act during the assessment proceedings, penalty of INR.10,000/- was also levied upon the Assessee under Section 272A(1)(d) of the Act. The appeal preferred by the Assessee challenging the levy of the aforesaid penalty was dismissed. Hence the present appeal.

6.

The Assessee has filed paper-book to bring on record the Order, dated 12/02/2026, passed by the National Faceless Appeal Centre (NFAC) in the quantum proceedings where by the addition of INR13,00,78,759/- made vide Assessment Order, dated 23/03/2023, for the Assessment Year 2018-2019, has been set aside. Thus, the issue of quantum addition is pending before the Assessing Officer. During the hearing the Learned Authorised Representative for the Assessee had made limited

2 Assessment Year: 2018-2019 plea that the issue of levy of penalty under Section 272A(1)(d) of the Act may also be restored back to the file of the Assessing Officer. We note that the Assessee had taken a stand that the notices issued during the original assessment proceedings were not issued on any email address and has also placed copy of notices issued on record. The stand taken by the Assessee requires verification of the assessment records. Further, perusal of the Penalty Order, dated 23/09/2023, shows that the Assessee had, even otherwise, contended that the Authorised Representative of the Assessee had failed respond to notices and therefore, the Assessee was proceeded ex-parte. In our view, both the contentions raised by the Assessee require consideration and therefore, accepting the plea made by the Learned Authorized Representative of the Assessee, we set aside the penalty of INR.10,000/- levied upon the Assessee under Section 272A(1)(d) of the Act with the directions to the Assessing Officer adjudicate the issue of levy of penalty under Section 272A(1)(d) of the Act afresh after verifying the assessment records; on consideration of the contentions of the Assessee and by granting a reasonable opportunity of being heard to the Assessee. In terms of the aforesaid, Ground No. 1 to 3 raised by the Assessee are allowed for statistical purposes.

7.

In result, the present appeal preferred by the Assessee is allowed for statistical purposes. Order pronounced on 22.06.2026, (Dr. B.R.R. Kumar) Judicial Member िदनांक Dated :22.06.2026 अहमदाबाद Ahmedabad;H.C. PS

3 Assessment Year: 2018-2019

आदेशक""ितिलिपअ"ेिषत/Copy of the Order forwarded to : 1. अपीलाथ"/ The Appellant

2.

""यथ"/ The Respondent. 3. संबंिधतआयकरआयु"/ Concerned CIT 4. आयकरआयु"(अपील) / The CIT(A) 5. िवभागीय"ितिनिध, आयकरअपीलीयअिधकरण/ DR, ITAT, 6. गाड"फाईल /Guard file. आदेशानुसार/BY ORDER, उप/सहायकपंजीकार (Dy./Asstt.

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