SANJAY VASANTRAO WANI,NASHIK vs. INCOME-TAX OFFICER, WARD - 1(4), NASHIK

The assessee has raised the following ground of appeal:- 1. On the basis of facts and the circumstances of the case and as per law, the Commissioner of Income Tax (Appeal)-I, Nashik, is not justified in confirming the levy of penalty of Rs.10,000/- u/s. 271(1)(b) of the Act.

The issue raised in the present appeal is against levy of penalty under section 271(1)(b) of the Act at ₹ 10,000/-.

Briefly, in the facts of the case, case of assessee was taken up for scrutiny. The Assessing Officer issued notice under section 142(1) of the Act, dated 10.09.2014 along with questionnaire. The assessee vide letter dated 20.09.2014 requested for more time. The hearing of case was adjourned to 08.10.2014. The assessee did not put in appearance on 08.10.2014. Hence, notice under section 142(1) of the Act was issued on 09.10.2014. The assessee again did not file any submissions in response to the said notice and the Assessing Officer issued notice under section 271(1)(b) of the Act, dated 09.10.2014. In response to final opportunity, the assessee filed its submissions and pointed out that because of change in Authorized Representative, information could not be filed in time. The assessment was completed under section 143(3) of the Act vide order dated 18.03.2015. The Assessing Officer also initiated penalty proceedings under section 271(1)(b) of the Act. The Assessing Officer levied penalty under section 271(1)(b) of the Act for default of non-attendance on 08.10.2014. The levy of penalty was upheld by the CIT(A), against which the assessee is in appeal.

It may be pointed out that levy of penalty has been levied for non- attendance on 08.10.2014 i.e. the date on which the matter was adjourned after issue of notice under section 142(1) of the Act for appearance on 25.09.2014. After perusing the written submissions filed by assessee and arguments of the learned Departmental Representative for the Revenue, we find no merit in the aforesaid levy of penalty under section 271(1)(b) of the Act as the said penalty is leviable for default in non-attendance to the notice under section 142(1) of

In the result, the appeal of assessee is allowed.