SHRI SHANKAR ISPAT PRIVATE LIMITED,ALIGARH vs. COMMISSIONER OF INCOME-TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE (NFAC)
Facts
The assessee's appeal for assessment year 2012-13 arose against a penalty imposed under section 271(1)(b) for failure to comply with a section 142(1) notice. The assessee did not appear before the tribunal when the case was called.
Held
The tribunal held that a single default of non-compliance with the notice could not be considered a willful non-compliance. Therefore, the penalty was not leviable in this case.
Key Issues
Whether the penalty imposed under section 271(1)(b) for a single instance of non-compliance is justified.
Sections Cited
271(1)(b), 142(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, AGRA
Before: SHRI SATBEER SINGH GODARA & SHRI MANOJ KUMAR AGGARWALShri Shankar Ispat Pvt.
IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AGRA BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER & SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER ITA No. 262/Agr/2024 (Assessment Year 2012-13) Shri Shankar Ispat Pvt. Vs. CIT(A)/NFAC/ITO Ltd., Near Stha Sugar, Ward-4(1)(1) Mills Kasimpur Road, Aligarh-110001 Aligarh, U.P.-202001 �ायीलेखासं./जीआइआरसं./PAN/GIR No: AANCS6930P Appellant .. Respondent
Appellant by : None Respondent by : Sh. Shalendra Shrivastava, Sr. DR Date of Hearing 10.02.2025 Date of Pronouncement 10.02.2025
O R D E R PER SATBEER SINGH GODARA, JUDICIAL MEMBER:
This assessee’s appeal for assessment year 2012-13 arises against Commissioner of Income Tax(Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and Order No. ITBA/NFAC/S/250/2024-25/1065081908(1) dated 22.05.2024, involving proceedings u/s 271(1)(b) of the Income-tax Act, 1961, [hereinafter referred to as the ‘Act’]. 2. Case called twice. None appears at the assessee’s behest. It is accordingly proceeded ex-parte.
P a g e | 2 ITA No. 262/agr/2024 Shri Shankar Ispat Pvt.Ltd. 3. Learned DR vehemently argues that both the lower authorities herein have rightly imposed section 271(1)(b) penalty of Rs.10,000/- since the assessee failed to comply with his section 142(1) notice issued during scrutiny proceedings. And that he has further filed any cogent explanation all along explaining his non-cooperation during the course of reassessment. However, we opine that a single default could not be taken as an instant willful non-compliance in the given facts and therefore, this is not a fit case for levying of impugned penalty. 4. Accordingly, we delete Section 271(1)(b) penalty in above terms. 5. This assessee’s appeal is allowed. Order pronounced in the open court on 10.02.2025
Sd/- Sd/- (Manoj Kumar Aggarwal) (Satbeer Singh Godara ) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 10.02.2025 PS: Rohit/Subodh, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT
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