SUTANUTI MARKETING P.LTD,DELHI vs. DCIT, CENTRAL CIRCLE, GHAZIABAD

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ITA 6313/DEL/2017Status: DisposedITAT Delhi16 July 2021AY 2010-113 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the assessment order was passed under section 143(3) and not under section 144, the earlier non-compliance with the notice was considered adequately addressed. Therefore, the penalty was not justified.

What were the facts?

The assessee failed to comply with a notice issued under section 142(1) of the Income-tax Act. Consequently, a penalty of ₹10,000 was levied under section 271(1)(b) of the Act, which was upheld by the CIT(A).

What were the issues?

Whether penalty under section 271(1)(b) is leviable for non-compliance of notice under section 142(1) when the assessment order is passed under section 143(3) and not ex-parte under section 144.

Which sections of the Income-tax Act were involved?

Section 142(1),Section 271(1)(b),Section 143(3),Section 144

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, DELHI BENCH: ‘G’ NEW DELHI

Before: SHRI O.P. KANT & SHRI KULDIP SINGH

Hearing: 08.07.2021Pronounced: 16.07.2021

ORDER PER O.P. KANT, AM:

This appeal by the assessee is directed against order dated 14/08/2017 passed by the learned Commissioner of Income-tax (Appeals)-IV, Kanpur [in short ‘the Learned CIT(A)’] in respect of penalty of ₹ 10,000 levied under section 271(1)(b) of the Income- tax Act, 1961 (in short ‘the Act’) by the Assessing Officer for non- compliance of notice under section 142(1) of the Act.

2.

Briefly stated facts of the case are that during the proceeding under section 153 of the Act, the Assessing Officer issued notice under section 142(1) of the Act on 10/11/2016, which could not be complied by the assessee. The assessee also could not comply notice for levy of impugned penalty. The Assessing Officer levied penalty of ₹ 10,000 in his order dated 15/12/2016 under section 271(1)(b) of the Act. The Learned CIT(A) also upheld the penalty. Aggrieved, the assessee is before us.

3.

None appeared on behalf of the assessee. We have heard Learned Departmental Representative on the issue in dispute and perused the relevant material on record. Before the Ld. CIT(A), it was submitted by the assessee that in the group cases of 14 entity for seven years about 98 cases were pending before the Assessing Officer and learned Authorized Representative of the assessee was regularly appearing before the Learned Assessing Officer in one or other cases and, therefore, no attendance was recorded in this particular case. It is further submitted that written submission and supporting documents have been filed before the Assessing Officer and the assessment was completed under section 143(3) of the Act. We find that ITAT, Delhi Bench in the case of Akhil Bhartiya Prathmik Shikshak Sangh Bhawan Trust vs. ADIT reported in [2008] 115 TTJ 419 (Del.) has held that that where an assessee had not complied with notice issued u/s 142(1) of the Act but the assessment order was passed u/s 143(3) of the Act and not u/s 144, it meant that subsequent compliance in assessment proceedings was considered as good compliance and defaults committed earlier were ignored by the Assessing Officer and therefore, levy of penalty u/s 271(1) (b) of the Act was not justified. 3.1 Respectfully following the above finding, since final order has been passed under section 143(3) of the Act and not under section 144 of the Act, the penalty levied by the Assessing Officer is deleted. The grounds raised

by the assessee allowed

4. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 16th July, 2021.

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