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Facts
The assessee, Jayasakthi Knit Wear, appealed against the order confirming a penalty of Rs.40,000/- for not responding to notices. The assessee claimed depression due to business losses as a reason for non-compliance.
Held
The Tribunal acknowledged the assessee's plea of depression and business losses. However, it directed the deletion of Rs.30,000/- from the penalty, confirming a penalty of Rs.10,000/- as sufficient.
Key Issues
Whether the penalty imposed for non-compliance with notices is justified given the assessee's plea of depression and business losses.
Sections Cited
271(1)(b)
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Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI AMITABH SHUKLA
आदेश / O R D E R
PER ABY T. VARKEY, JM:
This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), (hereinafter in short ‘the Ld.CIT(A)’), NFAC, Delhi, dated 19.04.2024 for the Assessment Year (hereinafter in short ‘AY’) 2016-17.
The main grievance of the assessee is against the order of the Ld.CIT(A) confirming penalty for violation of sec.271(1)(b) of the Income Tax Act, 1961 (hereinafter in short "the Act") thereby confirming levy of penalty of Rs.40,000/- for not responding to notices (four times). The only plea of the assessee is that the assessee got into depression since the assessee suffered huge loss in the business and therefore, couldn’t respond to the notices of the AO and has filed an affidavit pleading for leniency.
Having gone through the contents of the affidavit, we are of the view that penalty of Rs.10,000/- would suffice for not responding to the notices and therefore, we direct the Ld.CIT(A) to delete penalty of Rs.30,000/- and confirm penalty of Rs.10,000/-
In the result, appeal filed by the assessee is partly allowed.