RAMDAS CHABAJI DHANKUDE,PUNE vs. ACIT, CENTRAL CIRCLE 2(4), PUNE

आदेश / ORDER

PER R.S. SYAL, VP :

This batch of nine appeals has five appeals against the

confirmation of penalty u/s.271(1)(b) in relation to the A.Yrs.

2012-13 to 2016-17; and four appeals against the confirmation of

penalty u/s.271F for the A.Yrs. 2012-13, 2013-14, 2016-17 &

2017-18. For sake of convenience, we have clubbed all the

appeals for disposal by a consolidated order.

2 Ramdas Dhanaji Dhankude

u/s.271(1)(b) revolve around the facts that a search and seizure

action u/s.132 of the Act was carried out in the case of one Sh

Baburao D Chandere and others on 19-12-2017. Residence of the

assessee was also covered within this search. A common notice

u/s.142(1) was issued for all the years along with a detailed

questionnaire requiring the assessee to submit the necessary

details by 01-02-2021. The assessee filed a letter dated

09-02-2021 submitting that the information, documents and data

required for the submissions were under compilation and due to

Covid-19 pandemic, office of the assessee was not functioning at

full capacity. The AO imposed penalty of Rs.10,000/-

u/s.271(1)(b) for failure to comply with the notice issued

u/s.142(1) for each of the year under consideration. Such penalty

was affirmed in the first appeal, against which the assessee has

approached the Tribunal.

relevant material on record, it is seen as an admitted position that

the assessee did not comply with the notices issued u/s.142(1) of

the Act. However, the reason for such non-compliance, as put

forth before the AO, was the prevalence of Covid-19 pandemic

3 Ramdas Dhanaji Dhankude

and the resultant disturbance due to non-working of the assessee’s

office at full capacity. Section 271(1)(b) is subject to section

273B. The latter section provides that penalty under various

sections, including section 271(1)(b), may be deleted where a

‘reasonable cause’ is established for failure to comply. Adverting

to the facts of the extant case, we find that the assessee had a

‘reasonable cause’ of the prevalence of covid-19 pandemic for

not complying with the requirements of the AO called for by

means of notice u/s.142(1) of the Act. We, therefore, order to

delete the penalty imposed for all the years under consideration.

01 day each. The ld. AR submitted that the delay period pertains

to Covid-19 pandemic and hence, covered by the judgment of

Hon’ble Supreme Court in Cognizance for Extension of

Limitation, In re 438 ITR 296 (SC) read with judgment in

Cognizance for Extension of Limitation, In re 432 ITR 206 (SC)

dated 08-03-2021 and 421 ITR 314 where the Hon’ble Apex

Court took a suo motu cognizance of the situation arising out of

the challenges faced by the country on account of COVID-19

Virus and resultant difficulties that could be faced by the litigants

across the country and accordingly extended the time limit for

4 Ramdas Dhanaji Dhankude

filing of the appeals. We, therefore, condone the delay in filing

the instant appeals and admit them for disposal on merits.

that the assessee did not furnish his return for the relevant years

pursuant to notice u/s.153C. Penalty of Rs.5,000/- was imposed

for each of the year under consideration. The ld. CIT(A) affirmed

the penalty by observing that the assessee did not furnish any

return till the passing of the impugned order. On the contrary, the

ld. AR has brought to our notice, with relevant evidence, that all

the returns were filed on 09-02-2021 as against the impugned

order dated 30-07-2021. The assessee submitted similar reason

for non-compliance, being, the prevalence of Covid-19 pandemic

making it hard to file the returns in time. Following the view

taken hereinabove accepting the reasonableness of the cause, we

delete the instant penalties for the years under consideration.

Sd/- Sd/- (S.S. VISWANETHRA RAVI) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; िदनांक Dated : 19th October, 2022 सतीश

Ramdas Dhanaji Dhankude

आदेश की �ितिलिप अ�ेिषत/Copy of the Order is forwarded to: अपीलाथ� / The Appellant; 1. ��थ� / The Respondent 2. 3. The CIT(A)-12, Pune 4. The Pr. CIT, Central, Pune 5. DR, ITAT, ‘B’ Bench, Pune गाड� फाईल / Guard file. 6.

आदेशानुसार/ BY ORDER,

// True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune

Date 1. Draft dictated on 19-10-2022 Sr.PS 2. Draft placed before author 19-10-2022 Sr.PS 3. Draft proposed & placed before JM the second member 4. Draft discussed/approved by JM Second Member. 5. Approved Draft comes to the Sr.PS Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *