JAYASAKTHI KNIT WEAR,TIRUPPUR vs. ITO, WARD-1(4), TIRUPPUR

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’) 2017-18 confirming the penalty levied by the AO u/s.272A(1)(d) of the Income Tax Act, 1961 (hereinafter in short "the Act").

The main grievance of the assessee is against the order of the AO confirming penalty for violation of sec.272A(1)(d) of the Act levying penalty of Rs.40,000/- for not responding to notices (four times) other than levying penalty of Rs.10,000/- for non-compliance. 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 sworn 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 AO 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 for statistical purposes.