HIMANSHU SINGHAL,NEW DELHI vs. DCIT, CENTRAL CIRCLE-03, NEW DELHI

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ITA 2468/DEL/2023Status: DisposedITAT Delhi18 December 2023AY 2014-15Bench: SHRI CHALLA NAGENDRA PRASAD (Judicial 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 held that since the assessee subsequently complied with the notice and questionnaire, and the assessment was completed accepting the returned income, the penalty for non-compliance was not justified.

What were the facts?

The assessee filed an appeal against a penalty of Rs. 10,000 levied under Section 271(1)(b) for non-compliance with a notice. Although the assessee did not appear, the Tribunal reviewed the assessment order.

What were the issues?

Whether a penalty under Section 271(1)(b) can be levied for non-compliance with a notice when there was subsequent compliance and the assessment was completed accepting the returned income.

Which sections of the Income-tax Act were involved?

Section 271(1)(b),Section 142(1),Section 143(3)

AI-generated summary — verify with the full judgment below

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

Before: SHRI CHALLA NAGENDRA PRASAD

Hearing: 12.10.2023

आदेश /O R D E R

1.

This appeal is filed by the Assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-23, New Delhi dated 27.06.2023 in sustaining the penalty of Rs.10,000/- levied u/s 271(1)(b) of the Act. In spite of issue of notice, none appeared on behalf of the Assessee, nor any adjournment was moved.

2.

The appeal is disposed of by hearing the Ld. DR.

3.

Perusal of the penalty order dated 22.09.2022 shows that the assessee did not respond to the notice dated 30.11.2021 issued u/s 1

I.T.A.No.2468/Del/2023 142(1) of the Act for which the penalty of Rs.10,000/- was levied for non-compliance of the said notice.

4.

Perusal of the assessment order passed u/s 143(3) r.w.s. 147 shows that the income of Rs.1,20,69,520/- returned by the assessee was accepted and no addition has been made. It is also observed from the assessment order that a detailed questionnaire along with notice u/s 142(1) dated 01.12.2021 was called for and the assessee has complied with filing necessary evidences required in the notice and questionnaire. The assessment was completed by accepting the income returned. However, the penalty was levied for non- compliance of notice dated 30.11.2021. It is observed that the assessee has responded to subsequent notice as well as detailed questionnaire and furnished the information based on which assessment was completed accepting the income returned. In the case of Hemand Kumar Soni Vs. DCIT (2017) [49 CCH 350] the Indore Bench of the Tribunal held that no penalty can be levied, if assessment has been completed u/s 143(3) of the Act and there is subsequent compliance in assessment proceedings which was considered to be a good compliance. Similar view has been taken in the case of Mano Rani Vs. DCIT (2020) [82 ITR 22] (Trib.).

I.T.A.No.2468/Del/2023

5.

In view of the above decisions, the penalty levied u/s 271(1)(b) is deleted.

6.

In the result, appeal of the assessee is allowed.

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