MUKESH KUMAR,AMBALA vs. INCOME TAX OFFICER, WARD 5-AMBALA, AMBALA

Aforesaid appeal by assessee for Assessment Year (AY) 2012- 13 arises out of an order of learned Commissioner of Income Tax (Appeals), National Fearless Appeal Center (NFAC), Delhi [CIT(A)] dated 13-12-2024 confirming penalty of Rs.10,000/- as levied by Ld. Assessing Officer [AO] u/s. 271(1)(b) vide order dated 17-01-2024. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under.

The assessee did not file his return of income. However, the case was reopened to examine the issue of purchase of debentures for Rs.5 Lacs by the assessee. The Ld. AO issued initial notice u/s 142(1) on 08-08-2019 followed by three other notices which were not responded to by the assessee and no return of income was filed by the assessee. Accordingly, the amount of Rs.5 Lacs was added to the income of the assessee. The Ld. AO initiated penalty u/s 271(1)(b) for failure to comply with hearing notice dated 08-08-2019 and levied impugned penalty of Rs.10,000/-. 3. During first appeal, the assessee drew attention to the fact that quantum appeal was restored back by Tribunal to the file of Ld. CIT(A) for fresh adjudication by observing that hearing notices were not received by the assessee. However, Ld. CIT(A) confirmed the penalty against which the assessee is in further appeal before us. 4. It emerges that the quantum appeal has already been restored back by Tribunal to the file of Ld. CIT(A) for fresh adjudication on the observation that hearing notices were not received by the assessee. On these facts, the assessee could not be penalized and therefore, it is not a fit case for levy of penalty. Accordingly, we delete the same. 5. The appeal stand allowed.