PALLATHOOR KUMARAN BINU,KUNNAMKULAM vs. INCOMETAX OFFICER, W-1 & TPS GVR, GURUVAYOOR

Brief facts of the case are that the appellant is an individual. No return of income was filed for AY 2019-20. Subsequently the appellant filed return of income in response to notice u/s. 148 of the Act dated 21.03.2023 disclosing income of Rs. 2,45,080/-. However, Pallathoor Kumaran Binu the AO issued show cause notice u/s. 274 r.w.s. 271B initiating penalty proceedings. In response to the show cause notice, the appellant filed explanation stating that the delay in submitting the Tax Audit Report was not intentional. The same was because of lack of knowledge, etc. However, the AO had proceeded with levy of penalty of Rs. 1,50,000/- vide order dated 03.09.2024 passed u/s. 271B of the Act.

Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO.

Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal.

When the appeal was called on nobody appeared on behalf of the assessee despite due service of notice of hearing. Therefore, we proceeded to dispose of the appeal after hearing the learned Sr. DR.

At the outset, we find that the NFAC had discussed the levy of penalty u/s. 272(1)(d) of the Act without discussing the facts of the present case. Therefore, we are of the considered opinion that the matter requires remand to the file of NFAC for fresh disposal in accordance with law after affording reasonable opportunity of hearing to the appellant.

In the result, the appeal filed by the assessee stands partly allowed for statistical purposes.