VISWANATH GUPTA,KOLKATA vs. I.T.O.,WARD-5(2), KOLKATA

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ITA 1597/KOL/2019Status: DisposedITAT Kolkata09 July 2020AY 2016-172 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that a penalty under Section 271(1)(b) is not sustainable in cases of regular assessment under Section 143(3) as it does not involve non-compliance with scrutiny notices. The penalty was deleted based on a co-ordinate bench's decision.

What were the facts?

The assessee's appeal pertains to a penalty imposed under Section 271(1)(b) for non-compliance with scrutiny notices during assessment. The assessment was framed under Section 143(3) of the Income Tax Act.

What were the issues?

Whether a penalty under Section 271(1)(b) is leviable for non-compliance with scrutiny notices when the assessment is completed under Section 143(3).

Which sections of the Income-tax Act were involved?

Section 271(1)(b),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA BENCH “D” KOLKATA

Before: Shri J.Sudhakar Reddy & Shri S.S.Godara

Shri Manish Tiwari, CA अपीलाथ� क� ओर से/By Appellant Shri Dhruba Jyoti Roy, JCIT-SR-DR ��यथ� क� ओर से/By Respondent 18-06-2020 सुनवाई क� तार�ख/Date of Hearing 09-07-2020 घोषणा क� तार�ख/Date of Pronouncement आदेश /O R D E R PER S.S.Godara, Judicial Member:- This assessee’s appeal for assessment year 2016-17 arises against the Commissioner of Income Tax (Appeals)-2, Kolkata’s order dated 07.06.2019 passed in case No.10174/CIT(A)-2/2018-19 involving penalty proceedings 271(1)(b) of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file(s) perused.

2.

It transpires during the course of hearing both the learned authorities’ have imposed sec. 271(1)(b) penalty amounting to ₹10,000/- on account of non-compliance to scrutiny notices issued during the course of assessment(s). Learned DR fails to dispute the clinching fact that the Assessing Officer had framed sec. 143(3)

Assessment Year 2016-17 Vishwanath Gupta Vs ITO Wd-5(2), Kol. Page 2 assessments in all these assessment year(s). This tribunal’s co-ordinate bench’s decision in Angsuman Daskar vs. ITO in decided on 22.06.2018 holds that the impugned penalty in case of a regular assessment u/s. 143(3) of the Act is not sustainable as such an instance does not involve non compliance of the scrutiny notices. We adopt the very reasoning to delete the impugned identical penalty.

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