VANDANA ANIL BALADAHRE,GONDIA vs. THE INCOME TAX OFFICER, PANVEL

When the case called for none appeared on behalf of the assessee. On the previous date of hearing fixed on 23.07.2025 assessee failed to appear. We therefore proceed to adjudicate the appeal with the assistance of Ld. Departmental Representative (DR) and available records.

We have heard Ld. DR and perused the record placed before us. Ld. DR had relied on the finding of Ld. CIT(A). We note that during the course of assessment proceedings for A.Y. 2013-14 carried out in the case of the present assessee who is an individual, assessee failed to respond to the notices issued u/s 142(1) of the Act dated 14.07.2021, 20.07.2021 & 02.08.2021. For this non compliance Ld. Assessing Officer (AO) invoked section 271(1)(b) of the Act and levied penalty of Rs.30,000/- @ Rs. 10,000/- for each non compliance. In the appeal filed before Ld. CIT(A) assessee failed to succeed.

We observe that when the notice u/s 142(1) of the Act were issued to the assessee on three occasions, the Country was facing the Covid-19 Pandemic and apart from restriction on movement various other problems were faced by the citizens of this Country. Even the Hon’ble Supreme Court in the case of “Cognizance for extension of limitation, (2022) 441 ITR 722 (SC) dated 10.01.2022” has extended the limitation period upto May, 2022. Considering the facts and circumstances and also considering the provisions of section 273B of the Act which provides that for the penalties referred in section 273B of the Act which includes the penalty levied u/s 271(1)(b) of the Act, no penalty shall be imposable on the the assessee as if he proves that there was reasonable cause for the said failure. We find that the case of the present assessee falls under the provisions of section 273B of the Act as the assessee had reasonable cause for not responding to the notices issued u/s 142(1) of the Act. We are therefore of the considered view that no penalty should have been levied by the AO u/s 271(1)(b) of the Act. Finding of the Ld. CIT(A) is reversed and penalty levied u/s 271(1)(b) of the Act at Rs. 30,000/- is deleted. Grounds of appeal raised by the assessee are allowed.