DEVENDER,ALWAR vs. INCOME TAX OFFICER, REWARI

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ITA 4540/DEL/2025Status: DisposedITAT Delhi18 December 2025AY 2015-2016Bench: SHRIMAHAVIR SINGH, HON’BLE VICE PRESIDENT AND SHRISANJAY AWASTHI (Accountant Member)3 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal accepted the assessee's plea of "reasonable cause" under Section 273B, finding that the circumstances prevented him from fulfilling his obligations regarding notices and filing of income tax returns. Consequently, the Tribunal directed the deletion of the penalties imposed on the assessee.

What were the facts?

The assessee filed two appeals against penalties levied under Section 271(1)(b) and Section 271F of the Income Tax Act, 1961, which were confirmed by the CIT(A). The assessee argued that notices were sent to an old address, he resided in a remote rural area with limited tax knowledge, and relied on a tax consultant due to infrequent taxable income, all constituting "reasonable cause" under Section 273B.

What were the issues?

Whether the assessee had "reasonable cause" under Section 273B of the Income Tax Act, 1961, for non-compliance with notices and failure to file income tax returns, thereby justifying the deletion of penalties levied under Sections 271(1)(b) and 271F.

Which sections of the Income-tax Act were involved?

Section 250,Section 271(1)(b),Section 271F,Section 273B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “B”NEW DELHI

Before: SHRIMAHAVIR SINGH, HON’BLE & SHRISANJAY AWASTHI

For Appellant: Shri Pradeep Dang, CA
For Respondent: Shri Sabyasachi Roy, Sr. DR
Hearing: 18.12.2025

सुनवाईक�तारीख/ Date of hearing: 18.12.2025 18.12.2025 उ�ोषणाक�तारीख/Pronouncement on आदेश /O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER:

1.

This is a batch of two appeals pertaining to the same assessee. For the sake of convenience these two appeals are being disposed of through a single order.

1.1 ITA 4539 arises from order u/s 250 of the Income Tax Act, 1961 (hereafter as “the Act”), dated 30.06.2025, passed by Ld. CIT(A), NFAC, Delhi. ITA 4540 arises from order u/s 250 of the Act, also dated 30.06.2025, passed by Ld. CIT(A), NFAC, Delhi. In ITA 4539 the point of contention is a penalty levied u/s 271(1)(b) of the Act and in ITA 4540 it is a penalty u/s 271F of the Act. Both these penalties have been confirmed at first appellate stage.

1.2 Further aggrieved, the assessee has approached the ITAT with grounds of appeal challenging both the penalties.

2. Before us, the Ld. AR argued that section 273B of the Act provided for relief from certain specified penalties, on account of “reasonable cause”. It was the submission that the assessee lives in Alwar but the notices were sent to an old address in Dharuhera. Furthermore, it was averred that the assessee stays in a remote, rural area and has no knowledge of tax procedures, nor is proper guidance available to him. It was the further submission that the assessee did not regularly have taxable income and hence he was entirely depended on his tax consultant for appropriately dealing with such matters. The Ld. AR ultimately pleaded that the assessee should not be penalized for ignorance of tax procedures.

2.1 The Ld. DR relied on the orders of authorities below.

3.

We have heard the Ld. AR/DR and gone through the records. It is evident, from an appraisal of the facts of this case, that the section 273B of the Act is meant for just these kinds of situations to mitigate hardship.

It deserves to be held that the assessee was prevented on account of “reasonable cause” in fulfilling his obligations under the Income Tax Act, both in terms of attending to notices as well as filing of a return of 2 income. Thus, considering the reasons advanced before us, we direct the deletion of impugned penalties.

4.

In the result, these two appeals are allowed.

Order pronounced in the open court on 18.12.2025

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