MRS BALBIR KAUR BIRDIE ,MADHYA PRADESH vs. ITO 11(3), PUNE

Facts of the case, in brief, are that assessee had originally filed his return of income on 30.03.2018 declaring total income of Rs.75,55,050/-. The Assessing Officer passed the order u/sec.143(3) on 25.10.2018 accepting the returned income. Subsequently, on realizing that certain errors have crept in the return filed while computing the capital gain, the assessee filed a revision petition u/sec.264 of the Act before the PCIT. The PCIT considered the said petition of the assessee and set aside the order passed u/sec.143(3) of the Act to the file of Assessing Officer to compute the income as per the provisions of law. Subsequently, the Assessing Officer issued two notices u/sec.142(1) on 07.03.2021 and 17.03.2021 respectively. Since the assessee did not make any compliance, the Assessing Officer, in the order passed u/sec.144 r.w.s.264 of the Act, determined the total income of the assessee at Rs.75,55,050/-.

1. In the meantime, due to non-compliance to the notice issued u/sec.142(1), the Assessing Officer initiated penalty proceedings u/sec.271(1)(b) of the Act. In absence of any compliance from the side of the assessee to the notices issued, the Assessing Officer levied penalty of Rs.20,000/- being penalty of Rs.10,000/- for each default for two defaults.

2. Since the assessee did not respond to the notice issued by the Ld. CIT(A) during appellate proceedings, the Ld.

Aggrieved with such order of the Ld. CIT(A), the assessee is in appeal before the Tribunal.

We have heard the rival arguments made by both the sides and perused the material on record. We find it is an admitted fact that the Assessing Officer passed the original assessment order u/sec.143(3) on 25.10.2018 determining the total income of the assessee at Rs.75,55,050/- which was the returned income. We find a revision petition was filed by the assessee u/sec.264 of the Act. The PCIT restored the issue to the file of Assessing Officer for afresh adjudication and the Assessing Officer in the order passed u/sec.144 r.w.s.264 of the Act determined the same income i.e., Rs.75,55,050/-. It is also an admitted fact that the two statutory notices u/sec.142(1) of the Act were issued by the Assessing Officer on 07.03.2021 and 17.03.2021 respectively, which were during the Covid period, for which, the assessee has a ‘reasonable cause’ for not appearing before the Assessing Officer. We find due to non submission to the statutory notice issued by the Ld. CIT(A), he passed an ex-parte order sustaining the addition made by the Assessing Officer. It is the submission of the Learned Counsel for the Assessee that adequate opportunity of hearing was not granted by the Ld. CIT(A) and since the e-

1. We find some force in the above arguments of the Learned Counsel for the Assessee. It is an admitted fact that Mr. Sandeep Singh Birdie was a Major General in the Indian Army serving for 34 years. It is also an admitted fact that the assessee has participated in the original assessment proceedings and the Assessing Officer has passed the order u/sec.143(3). It is also an admitted fact the order u/sec.144 r.w.s.264 of the Act was passed assessing the same income which was determined by the Assessing Officer in the order passed u/sec.143(3) of the Act. Since the two statutory notices u/sec.142(1) were issued during the Covid period and since the assessee was posted in a far-off place and such area was not having proper telephone and internet facility, therefore, under these circumstances, we are of the considered opinion that there was a ‘reasonable cause’ on the part of the assessee for such non-compliance to the statutory notices issued by the Assessing Officer.

2. We find the provisions of sec.273B reads as under :

3. Considering the totality of the facts and peculiar circumstances of the case and considering the fact that assessee was a Major General in Indian Army serving the Nation for 34 years, we are of the considered opinion that the 6 ITA.No.1466/PUN./2024

In the result, the appeal of the Assessee is allowed.