Loading judgment…
Facts
The assessee filed appeals against penalties levied under Section 271(1)(b) for non-compliance with notices during assessment proceedings. The assessee argued that notices were sent to an old address and, consequently, not received, leading to ex-parte assessment orders under Section 147 read with Section 144. The non-compliance was thus contended to be unintentional.
Held
The Tribunal found that the non-compliance was indeed not intentional because the assessee was unaware of the notices due to their dispatch to an outdated address. Therefore, the Tribunal concluded that it was not a suitable case for imposing penalties under Section 271(1)(b) and proceeded to set aside the impugned penalties.
Key Issues
Whether penalties levied under Section 271(1)(b) for non-compliance with assessment notices are justified when the notices were sent to an old address, resulting in the assessee's non-receipt and ex-parte assessments.
Sections Cited
271(1)(b), 147, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “ B ” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Shri Narendra Prasad Sinha
"ी संजय गग", "ाियक सद" एवं "ी नरे !साद िस"ा, लेखा सद" के सम%। ] ] Before Shri Sanjay Garg, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member आयकर अपील सं / 1391/Ahd/2024 & 1392/Ahd/2024 िनधा"रण वष" /Assessment Years : 2014-15, 2015-16 & 2016-17 respectively Gopalbhai Chelaji Prajapati The ITO बनाम/ A-401, Sarvopari Elegance Ward-2(1)(1) v/s. Opp.Satya Apartment Ahmedabad-380 015 Akash Residency Cross Road New Ranip Ahmedabad – 382 470 "थायी लेखा सं./PAN: AGAPP 3191 P (अपीलाथ'/ Appellant) (!( यथ'/ Respondent) Assessee by : Shri P.F. Jain, AR Revenue by : Shri Kavan Limbasiya, Sr.DR सुनवाई की तारीख/Date of Hearing : 15/07/2025 घोषणा की तारीख /Date of Pronouncement: 29/07/2025 आदेश/O R D E R Per Sanjay Garg, Judicial Member:
The captioned appeals have been preferred by the assessee for different assessment years against the separate orders of the National Faceless Appeal Centre [hereinafter referred to as “the CIT(A)] of even date 18/06/2024 agitating the confirmation of penalty levied by the Assessing Officer (AO) u/s.271(1)(b) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for non-compliances of the notices issued during the assessment proceedings. , 1391 & 1392/Ahd/2024 Gopalbhai Chelaji Prajapati vs,. ITO Asst. Years : 2014-15, 2015-16 & 2016-17 respectively 2 2. At the outset, the Ld.Counsel for the assessee has invited our attention to various documents placed in the paper-book to show that the notices issued by the AO were sent at old address of the assessee and, hence, the same were not received by the assessee resulting into ex-parte assessment orders of the AO passed u/s.147 r.w.s.144 of the Act. The Ld.Counsel has further demonstrated that even the assessee was not served with the assessment orders. It has, therefore, been contended that the non- compliances of the notices issued during the assessment proceedings were not intentional, rather due to the aforesaid reasons.
The Ld.DR could not controvert the aforesaid factual position on the file.
Considering the rival submissions, we are of the view that non- compliances of the notices by the assessee, in these cases, was not intentional, rather it was due to the fact that the assessee was not aware of the said notices issued by the AO. Therefore, in our view, these are not fit cases for levying penalty u/s.271(1)(b) of the Act. The impugned penalty levied u/s.271(1)(b) of the Act in all these appeals is hereby set aside.