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Facts
The assessee was penalized Rs. 10,000/- under Section 271(1)(b) for failing to furnish income tax returns for A.Y. 2016-17 and A.Y. 2015-16. The notices were issued in March 2020 and February 2021 respectively, during the Covid-19 pandemic. The assessee appealed against the penalty order and the order of the CIT(A) which confirmed the penalty.
Held
The Tribunal held that the period for compliance with the notices fell within the Covid-19 lockdown period, making it impossible for the assessee to comply due to extraordinary circumstances. Therefore, the penalty imposed was set aside.
Key Issues
Whether the penalty for non-compliance with tax notices is justified when the compliance period falls within the Covid-19 pandemic and lockdown restrictions.
Sections Cited
253, 271(1)(b), 148, 246A, 147, 144, 142(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: DR. MANISH BORAD & SHRI PARESH M JOSHI
In the result “Impugned Order” is set aside and penalty at Rs.10,000/- u/s 271(1)(b) upheld in the impugned order is deleted.
Both the parties fairly submitted that the facts and circumstances of other one appeal i.e. ITANo.213/Ind/2025 are exactly identical to the Appeal in ITANo.212/Ind/2025 and similar contentions raised therein may be considered, therefore & 213/Ind/2025 A.Y. 2015-16 & 2018-19 our findings and directions given in ITANo.212/Ind/2025 shall apply mutatis mutandis to this appeal which is accordingly allowed .
5.2 In view of the aforesaid both the appeals of the assessee are allowed.
Order pronounced by putting on notice board in terms of Rule 34 of ITAT, Rules, 1963, on 30.10.2025.