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Facts
The assessee is in appeal against the confirmation of penalty of Rs.50,000/- under Section 272A(1)(d) for AY 2018-19. The penalty was levied for non-compliance with hearing notices issued under Section 143(2) and Section 142(1). The assessee's AR submitted that non-appearance was due to the COVID-19 pandemic lockdown.
Held
The Tribunal noted that three out of four notices were issued during the COVID-19 lockdown. Considering the circumstances, the Tribunal decided to take a lenient view and delete the penalty.
Key Issues
Whether the penalty under Section 272A(1)(d) for non-compliance with notices is justified, considering the COVID-19 pandemic lockdown which prevented the assessee's appearance.
Sections Cited
272A(1)(d), 143(2), 142(1)
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Income Tax Appellate Tribunal, “C” BENCH, CHENNAI
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANU KUMAR GIRI, JM
(िनधा(रण वष( / Assessment Year: 2018-19) Smt. Umamaheswari ITO बनाम/ #3/2, Palavayal Salai, Non-Corporate Ward -10(3), Opp –M M Kalyanamandabam, Chennai. Vs. Agaram, Chennai-600 082. �थायीलेखासं./जीआइआरसं./PAN/TAN No. ABPPU-8639-K (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Shri D. Anand (Advocate) – Ld.AR ��थ�कीओरसे/Respondent by : Ms. Anitha (Addl.CIT) - Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 31-12-2024 घोषणाकीतारीख /Date of Pronouncement : 01-01-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aggrieved by confirmation of penalty u/s 272A(1)(d) of the Act for Rs.50,000/- for Assessment Year (AY) 2018-19, the assessee is in further appeal before us. The impugned order has been passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 30.08.2024 in the matter of impugned penalty levied by Ld. Assessing Officer [AO] u/s. 272A(1)(d) of the Act vide order dated 28.07.2021. The said penalty is levied for non- compliance of hearing notices issued u/s. 143(2) on 28.09.2019 and notices issued u/s 142(1) on 24.12.2019, 18.03.2020, 16.07.2020 and 26.08.2020. The penalty has been levied at the rate of Rs.10,000/- for each default. The Ld. AR has submitted that the appearances could not be made due to lockdown situation arising out of Covid-19 Pandemic. The Ld. Sr. DR stated that two notices were issued earlier to Covid-19 Pandemic.
It is clear that initially the case was subjected to scrutiny and notice u/s 143(2) was issued on 28-09-2019. Subsequently, notices u/s 142(1) were issued calling for various details from the assessee. It could be seen that 3 out of 4 notices fall within lockdown situation arising out of Covid-19 Pandemic which call for a lenient view in the matter of penalty. Therefore, we delete the impugned penalty of Rs.50,000/- and allow the appeal of the assessee.