Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT
Before: Ms. Annapurna Gupta & Shri T.R. Senthil Kumar
आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-
This appeal is filed by the Assessee against the order dated 23.07.2021 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “NFAC”), as against confirming of penalty levied under section Page No Shri Mitul Vinodkumar Shah vs. ITO 271(1)(b) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year (A.Y) 2011-12.
The brief facts of the case is that the assessee is an individual. For the Assessment Year 2011-12, the assessee has not filed its original Return of Income. The Assessing Officer has reason to believe that the assessee has carried on transaction in shares of M/s. Swarnasarita Gems Ltd. (Formerly known as Shyam Star Gems Ltd.) to the tune of Rs. 1,49,489/-. However, the assessee has not filed the Return of Income disclosing the above transaction and the same is treated as undisclosed investment under section 69A of the Act. Therefore the assessment was reopened by issuing a notice u/s. 148 on 30/03/2018. In response the assessee did not file the Return of Income. Therefore the Assessing Officer issued notices u/s. 142 on 11/10/2018. The assessee neither attended in person nor submitted any evidence in support of transactions of shares. Further the assessee failed to comply with the notices issued on 13/07/2018, 16/08/2018, 06/09/2018 and 05/10/2018. Therefore with the available materials on record ex parte assessment was passed determining the total income as Rs. 03,09,489/- and also initiated penalty proceeding under section 271(1)(b) for non-compliance of the notices. The Penalty notice was duly served on the assessee and the assessee was requested to furnish its reply within 20 days of receipt of the notice. The assessee neither attended personally or through A.R. nor filed any Written Submission on the penalty notice. Therefore the Assessing
Page No Shri Mitul Vinodkumar Shah vs. ITO Officer levied a penalty of Rs. 10,000/- for not responding to the hearing notices.
3. Aggrieved against the same, the assessee filed an appeal before the NFAC. The assessee submitted that the details required by the Assessing Officer could not be filed within time as prescribed by the A.O., since the details were with part time Accountant who used to write the accounts from his home and he was out of station, therefore the assessee could not respond to the A.O. After considering the above explanation, the Ld. CIT(A) held that the negligence and shifting of responsibility on Accountant cannot be accepted as the hearing date was fixed for hearing on 22/08/2018 and the ex parte assessment order was made on 15/10/2018. Thus the part time Accountant will remain out of station for a very long period, the assessee cannot do away with his statutory duty to respond to the notices and ought to have cooperate in the assessment proceedings. Further the A.O. issued notice on 13/07/2018 fixing the case for hearing on 20/07/2018 which also remained unattended by the assessee. Thus the A.O. passed ex parte assessment u/s. 144 r.w.s. 147 so there is no justification or reasonable cause by the assessee in not responding to the notices issued by the A.O. Therefore the Ld. CIT(A) confirmed the levy of penalty of Rs. 10,000/- and dismissed the appeal.
4. Aggrieved against the same, the assessee is in appeal before us raising the following Grounds of Appeal: 1. The grounds raised in this appeal are without prejudice to one another.
Page No Shri Mitul Vinodkumar Shah vs. ITO
2. The Learned Income Tax Officer erred in law and on facts in levying the penalty u/s. 271(1)(b) of Rs. 10,000/- and the learned CIT (Appeals) erred in retaining the same. On the facts and circumstances of the case it is contended that the penalty levied deserves to be deleted.
It is respectfully submitted that assessee had applied for adjournment of the hearing of the present appeal fixing the hearing of the present appeal on 23/07/2021 through internet as the necessary details were to be collected and complied ; however for some reason the same has not been considered by the learned CIT (Appeals). In view of that the additional evidence as may be filed in the course of the hearing of this appeal before the Honourable bench may kindly be admitted as the same are of material and substance in deciding the issue under appeal.
As there was a reasonable cause as a result of which the details could not be filed, the penalty levied may kindly ordered be deleted.
4.1. None appeared on behalf of the assessee. When the case was listed for hearing on 27/09/2022 and 10/10/2022, assessee filed a letter stating certain details have to be collected and complied and requested for one month adjournment. The same were being granted, however none appeared on behalf of the assessee even today. As pleaded in the Grounds of Appeal, the assessee has not filed any new materials before us.
4.2. In the absence of the same and the assessee being a chronicle defaulter from the assessment stage by passing an ex parte order at Assessment state, Penalty stage and even before the Ld. CIT(A). None appeared on behalf of the assessee or any Authorized Representative on behalf of the assessee before us. Though the assessee pleaded in its Grounds to file additional evidences, in spite of 2 opportunities the same is not filed by the assessee. In the Page No Shri Mitul Vinodkumar Shah vs. ITO above circumstances, we have no hesitation in confirming the penalty levied under section 271(1)(b) for non-compliance of notices before the Assessing Officer. Thus the Grounds raised by the assessee does not hold merits and the same is dismissed.
In the result, the appeal filed by the Assessee is dismissed.
Order pronounced in the open court on 23-11-2022 Sd/- Sd/- (ANNAPURNA GUPTA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 23/11/2022 TRUE COPY आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,
उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, राजकोट