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Facts
The assessee filed appeals against penalties levied by the Ld.CIT(A) for non-compliance with notices issued under sections 142(1)/143(2) of the Income Tax Act for assessment years 2015-16 to 2021-22. The assessee contended that he was in judicial custody in Central Jail, Hisar, from 28.03.2021 to 06.08.2022, making it impossible for him to receive or respond to the notices.
Held
The Tribunal, upon reviewing the custody certificate, confirmed that the assessee was indeed in judicial custody during the period the notices were issued. It held that the notices could not have been properly served, thus constituting a sufficient cause for non-compliance. Consequently, the Tribunal directed the Assessing Officer to delete the penalties levied under sections 271(1)(b)/272A(1)(d) of the Act.
Key Issues
Whether penalties for non-compliance with notices under sections 142(1)/143(2) are justified when the assessee was in judicial custody during the relevant period.
Sections Cited
271(1)(b), 272A(1)(d), 142(1), 143(2)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “SMC” NEW DELHI
Before: SHRI CHALLA NAGENDRA PRASAD
I.T.A.Nos.2971 to 2977/Del/2023
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC” NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER आ.अ.सं/.I.T.A Nos.2971 to 2977/Del/2023 िनधा�रणवष�/Assessment Years: 2015-16 to 2021-22
बनाम Salim SO Roshan Din, DCIT C/o Sh. Tejmohan Singh, Advocate Vs. Central Circle, #527, Sector 10-D, Chandigarh. Karnal, Haryana. PAN No.CYJPS4176A अपीलाथ� Appellant ��यथ�/Respondent
Shri Tej Mohan Singh, Adv. िनधा�रतीक�ओरसे /Assessee by Shri Om Prakash, Sr. DR राज�वक�ओरसे /Revenue by
सुनवाईक�तारीख/ Date of hearing: 25.01.2024 23.04.2024 उ�ोषणाक�तारीख/Pronouncement on आदेश /O R D E R
All these appeals are filed by the assessee against common order of the Ld.CIT(Appeals)-3, Gurgaon dated 29.08.2023 in sustaining the penalty levied u/s 271(1)(b)/272A(1)(d) of the Act for non-compliance of notice/notices issued u/s 142(1)/143(2) of the Act.
Ld. Counsel for the assessee, at the outset, submits that the Assessing Officer levied penalty u/s 271(1)(b)/272A(1)(d) of the Act for non-compliance of notices issued u/s 142/143(2) of the Act. The Ld. Counsel for the assessee, at the outset, submits that assessee
I.T.A.Nos.2971 to 2977/Del/2023
was under custody as under trial in Central Jail, Hisar during the
period from 28.03.2021 to 06.08.2022 and, therefore, the assessee
could not respond to the notices issued by the Assessing Officer.
Ld. Counsel submits that since the assessee is in Central Jail as
under trial the notices issued by the Assessing Officer could not
have been served and, therefore, there is no justification for
levying penalty for non-compliance.
Ld. DR supported the orders of the authorities below.
Heard rival submissions, perused the orders of the authorities
below.
On perusal of the custody certificate issued by the Deputy
Superintendent, Central Jail, Hisar it is very much clear that the
assessee was under custody as under trial for the period from
28.03.2021 to 06.08.2021. In the circumstances, the notices issued
by the AO u/s 142(1)/143(2) of the Act could not have been served
on the assessee. From the perusal of the penalty orders passed u/s
271(1)(b)/272A(1)(d) of the Act it is noticed that penalty was levied
for non-compliance of the statutory notice issued u/s 142(1) dated
25.02.2022 for the assessment years 2015-16 to 2021-22. The notice
dated 25.02.2022 issued u/s 142(1) could not have been served on
I.T.A.Nos.2971 to 2977/Del/2023
the assessee as he was under the custody from 28.03.2021 to
06.08.2022, therefore, the question of levy of penalty for non-
compliance does not arise. Even otherwise the assessee is
prevented from sufficient cause in not responding to the notice
issued u/s 142(1) dated 25.02.2022. Thus, the AO is directed to
delete the penalty levied u/s 271(1)(b)/272A(1)(d) of the Act for
the assessment years 2015-16 to 2021-22. The grounds raised by the
assessee are allowed.
In the result, all the appeals of the assessee are allowed.
Order pronounced in the open court on 23/04/2024
Sd/- (C.N. PRASAD) JUDICIAL MEMBER Dated: 23.04.2024 *Kavita Arora, Sr. P.S. Copy of order sent to- Assessee/AO/Pr. CIT/ CIT (A)/ ITAT (DR)/Guard file of ITAT. By order
Assistant Registrar, ITAT: Delhi Benches-Delhi