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Facts
The assessee, a senior citizen, failed to file her income tax return or register with the Income Tax portal. She sold an immovable property and reinvested the sale consideration into another property. Due to not providing a changed address to the department, notices were sent to her old address, and she was unaware of them.
Held
The Tribunal held that the assessee is a senior citizen and her bonafides for not responding to the notices are not in doubt as she did not receive them. The main appeal concerning Capital Gains is still pending adjudication.
Key Issues
Whether penalty under Section 271(1)(b) is sustainable when the assessee did not receive the notices due to an old address and the main appeal is still pending.
Sections Cited
271(1)(b), 143(3), 144, 143(2), 142(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “C” MUMBAI
Before: SHRI RAHUL CHAUDHARY & SHRI OMKARESHWAR CHIDARA
This appeal by the assessee is directed against order dated 18/09/2024 passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2011-12.
In the above captioned appeal, the appellant has filed an In the above captioned appeal, the appellant has filed an In the above captioned appeal, the appellant has filed an appeal for A.Y. 2011- -12 with the following Grounds of Appeal : 12 with the following Grounds of Appeal :
“1. The Learned CIT (A) erred in facts and circumstances and in law The Learned CIT (A) erred in facts and circumstances and in law The Learned CIT (A) erred in facts and circumstances and in law in confirming Penalty that AO had levied u ing Penalty that AO had levied u/s 271(1)(b), by refusing to by refusing to condone a delay which itself was non condone a delay which itself was non-existent, when computed from existent, when computed from service of notices.
2. The Learned CIT (A) err The Learned CIT (A) erred in facts and circumstances and in law ed in facts and circumstances and in law in confirming Penalty that AO had levied u/s 271(1)(b) ing Penalty that AO had levied u/s 271(1)(b) when the appellant served with any notice as the residence to which notices were with any notice as the residence to which notices were with any notice as the residence to which notices were served had been sold, served had been sold, precisely on receipt of information of which the precisely on receipt of information of which the assessment was framed. nt was framed. The Appellant craves leave to amend, alter, modify or omit any of the The Appellant craves leave to amend, alter, modify or omit any of the The Appellant craves leave to amend, alter, modify or omit any of the aforesaid grounds of Appeal
as occasion may arise or demand. aforesaid grounds of Appeal as occasion may arise or demand. aforesaid grounds of Appeal as occasion may arise or demand.”
3. The AR of appellant has submitted that the appellant is a The AR of appellant has submitted that the appellant is a The AR of appellant has submitted that the appellant is a senior citizen and she doesn’t know the intricacie senior citizen and she doesn’t know the intricacies of Income Tax s of Income Tax Act. She has never filed Return of Income nor she Act. She has never filed Return of Income nor she Act. She has never filed Return of Income nor she had registered with Income Tax portal. She sold an old immovable property and with Income Tax portal. She sold an old immovable property and with Income Tax portal. She sold an old immovable property and invested the entire sale consideration by acquiring another invested the entire sale consideration by acquiring another invested the entire sale consideration by acquiring another immovable property. As the appellant has not given h immovable property. As the appellant has not given h immovable property. As the appellant has not given her “changed address” to Income Tax Department, the notices were sent to that address” to Income Tax Department, the notices were sent to that address” to Income Tax Department, the notices were sent to that old address and she was never aware of these notices, consequently old address and she was never aware of these notices, consequently old address and she was never aware of these notices, consequently couldn’t respond to the same. As the main appeal u/s. 143(3) r.w.s. couldn’t respond to the same. As the main appeal u/s. 143(3) r.w.s. couldn’t respond to the same. As the main appeal u/s. 143(3) r.w.s. 144 is still pending, it was requested that 144 is still pending, it was requested that one more opportunity one more opportunity may be given to her may be given to her to substantiate her case. Per contra, Ld. DR substantiate her case. Per contra, Ld. DR has argued that in view of the detailed order of Ld. CIT(A) and also has argued that in view of the detailed order of Ld. CIT(A) and also has argued that in view of the detailed order of Ld. CIT(A) and also because of continuous non because of continuous non-compliance of assessee, the penalty compliance of assessee, the penalty shall be sustained.
4. After hearing the After hearing the rival submissions, it is decided the assessee rival submissions, it is decided the assessee is given one more opportunity is given one more opportunity to the appellant for the following to the appellant for the following reasons: a) The appellant is a senior citizen and her bonafides The appellant is a senior citizen and her bonafides The appellant is a senior citizen and her bonafides for not responding to the notices u/s. 143(2)/142(1) are not in doubt responding to the notices u/s. 143(2)/142(1) are not in doubt responding to the notices u/s. 143(2)/142(1) are not in doubt because she ha because she has not received any of these notices. Of course, s not received any of these notices. Of course, the Department could not the Department could not be found fault since the appellant found fault since the appellant has not furnished “new address”. has not furnished “new address”. b) The main appeal which deals with Capital Gains is still The main appeal which deals with Capital Gains is still The main appeal which deals with Capital Gains is still pending with Ld. CIT(A) for adjudication and thu pending with Ld. CIT(A) for adjudication and thu pending with Ld. CIT(A) for adjudication and thus penalty appeal may have some b ppeal may have some bearing on the main appeal in the earing on the main appeal in the sense, if it is held that these is no taxable income, then sense, if it is held that these is no taxable income, then sense, if it is held that these is no taxable income, then appellant would have better chance to substantiate her case. appellant would have better chance to substantiate her case. appellant would have better chance to substantiate her case.
5. Accordingly, the appellant is direct Accordingly, the appellant is directed to co d to co-operate with Department on the dispos Department on the disposal of main appeal and this penalty appeal. al of main appeal and this penalty appeal.
6. As it was held that appellant would be given one more chance, As it was held that appellant would be given one more chance, As it was held that appellant would be given one more chance, the case is remitted to Ld. CIT(A) and the Ld. CIT(A) is directed to the case is remitted to Ld. CIT(A) and the Ld. CIT(A) is directed to the case is remitted to Ld. CIT(A) and the Ld. CIT(A) is directed to dispose of the main appeal of leviability of Capital Gains and then dispose of the main appeal of leviability of Capital Gains and then dispose of the main appeal of leviability of Capital Gains and then decide this penalty appeal. nalty appeal.
7. The appeal of appellant is allowed for statistical purposes. The appeal of appellant is allowed for statistical purposes. The appeal of appellant is allowed for statistical purposes.
Order pronounced in the open Court on Order pronounced in the open Court on 21/ /01/2025.