KARTIKAY NAYYAR,NEW DELHI vs. ACIT CENTRAL CIRCLE - 20, NEW DELHI
In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal found that the assessee had indeed replied to the AO on the specified date, explaining non-receipt of a notice. Therefore, the AO's observation of non-compliance was contrary to the record.
What were the facts?
The Assessing Officer (AO) levied penalty under Section 271(1)(b) for non-compliance with notices. The assessee claimed they did not receive a crucial notice, and had submitted a reply explaining this. The AO's order stated no compliance was made.
What were the issues?
Whether the penalty levied under Section 271(1)(b) for non-compliance with notices was justified when the assessee claimed non-receipt of a notice and had provided a reply.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC-2’, NEW DELHI
Before: Sh. BHAVNESH SAINIDr. B. R. R. Kumar
Heard together (9 matters)
Read from the judgment's own cause title. This page is filed under one of them.
Since, the identical issues are involved and the grounds of appeal being common for all the above six years i.e. from assessment years 2012-13 to 2016-17, for the sake of convenience, they are herewith addressed in a common order.
A notice u/s 153A of the Act was issued on 22.09.2017. A show cause notice was issued on 22.03.2018 fixing the case for 28.03.2018. Another notice u/s 153A was issued on 02.08.2018. Further, on 07.09.2018, a show cause notice was issued to the assessee and the case was fixed for hearing on 14.09.2018. On 05.10.2018, notice u/s 142(1) along with questionnaire were issued to the assessee and fixing the case for 25.10.2018. In compliance to the said notice, the assessee has not filed any reply except copy of ITR which has been already on record.
Since, there was no compliance to the notices issued, a penalty notice u/s 274 was issued on 09.11.2018 fixing the case for 19.11.2018. Since there was no compliance on 19.11.2018 the AO levied penalty u/s 271(1)(b) of Rs.10,000/-.
ITA Nos. 6410 to 6414/Del/2019 & 3 to 6208/Del/2019 Kartikay Nayyar and Shiv Kumar Nayyar 5. During the hearing before us, the assessee has referred the letter dated 19.11.2018 filed before the Assessing Officer wherein the assessee explained that the notice fixing the hearing on 25.10.2018 has not been received. There has been a noting of the Assessing Officer on this letter as to why the notice was not received. Thus, the ld. AR explained that there has been compliance to the notice issued.
The ld. DR argued that there has been a spate on non- compliances before the AO and hence the penalty has been rightly levied.
Heard the arguments of both the parties and perused the material available on record.
The rationale of the AO to levy the penalty vide order dated 06.12.2018 was that nobody attended on 19.11.2018 in response to the show cause issued u/s 274, the facts on record prove that the assessee has indeed replied on 19.11.2018 and explained that the notice dated 05.10.2018 has not been received by them and there was a noting of the Assessing Officer on the letter. Thus, the observation of the Assessing Officer that there was no compliance to the show cause was contrary to the findings on the record. Hence, the penalty levied is liable to be obliterated.
ITA Nos. 6410 to 6414/Del/2019 & 4 to 6208/Del/2019 Kartikay Nayyar and Shiv Kumar Nayyar 9. In the result, all the appeals of the assessees are allowed. Order Pronounced in the Open Court on 08/03/2021.
More judgments on Section 271(1)(b)
- Navanitbhai Gordhanbhai Bhuva, Surat vs ITO, Ward 3(3)(1), SuratITA 1195/SRT/2025[2014-15]Status: Disposed14 Oct 2026AY 2014-15
- Navanitbhai Gordhanbhai Bhuva, Surat vs ITO, Ward 3(3)(1), SuratITA 1194/SRT/2025[2014-15]Status: Disposed1 Oct 2026AY 2014-15
- Navanitbhai Gordhanbhai Bhuva, Surat vs ITO, Ward 3(3)(1), SuratITA 1193/SRT/2025[2014-15]Status: Disposed1 Oct 2026AY 2014-15
- Laxmi Narain Kesarwani, Delhi vs DCIT, Central Circle-20, New DelhiITA 4432/DEL/2026[2020-21]Status: Disposed1 Oct 2026AY 2020-21
- Laxminarain Kesarwani, Delhi vs DCIT, Central Circel-20, New DelhiITA 4431/DEL/2026[2019-20]Status: Disposed1 Oct 2026AY 2019-20
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