SATYWAN,PANIPAT vs. ITO WARD - 4, PANIPAT

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ITA 642/DEL/2021Status: DisposedITAT Delhi31 August 2023AY 2011-12Bench: Sh. C. M. Garg, Judicial Member Dr. B. R. R. Kumar (Accountant Member)2 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that non-receipt of the notice, even if received by parents, constitutes a reasonable cause for non-compliance under Section 273B. Therefore, the penalty levied was deleted.

What were the facts?

The assessee's appeal was against a penalty order under Section 271(1)(b) for non-compliance with a notice under Section 142(1). The assessee claimed non-receipt of the notice due to it being received by illiterate parents.

What were the issues?

Whether non-receipt of a notice by the assessee, due to it being received by illiterate parents, constitutes a reasonable cause for non-compliance with Section 142(1) to avoid penalty under Section 271(1)(b).

Which sections of the Income-tax Act were involved?

Section 271(1)(b),Section 142(1),Section 273B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘H’, NEW DELHI

Before: Sh. C. M. GargDr. B. R. R. Kumar

For Appellant: Adv. &
Hearing: 17.08.2023Pronounced: 31.08.2023

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI Before Sh. C. M. Garg, Judicial Member Dr. B. R. R. Kumar, Accountant Member Asstt. Year : 2011-12 Satywan, Vs Income Tax Officer, Prop. Raj Khad Bhandar Near Bus Ward-4, Stand Mandi Madlauda, Panipat, Panipat, Haryana-132113 Haryana-132103 (APPELLANT) (RESPONDENT) PAN No. EUHPS7375M Assessee by : Sh. Somil Agarwal, Adv. & Sh. Shrey Jain, Adv. Revenue by : Sh. Amit Katoch, Sr. DR Date of Hearing: 17.08.2023 Date of Pronouncement: 31.08.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member:

The present appeal has been filed by the assessee against the order of National Faceless Appeal Centre (NFAC), Delhi dated 06.03.2021.

2.

Following grounds have been raised by the assessee:

“1. That the order of ld. CIT(A) in upholding the penalty order u/s 271(1)(b) of the Assessing Officer is against the principals of natural justice, illegal, void & uncalled for.” 3. Heard the arguments of both the parties and perused the material available on record.

4.

The AO levied penalty u/s 271(1)(b) of the Income Tax Act, 1961 for non-compliance of notice u/s 142(1) of the Act dated 22.11.2018. The assessment in this case has been 2 Satywan completed u/s 147 r.w.s. 144 of the Income Tax Act, 1961. It was submitted that the notices have been received by the parents of the assessee and the same have not been given to the assessee as the parents are illiterate.

5.

Section 273B of the Act provides that penalty u/s 271(1)(b) need not be imposed, if it is proved that there was a reasonable cause for the said failure of the assessee to comply with the provisions of Section 271(1)(b). In this case, we find that non-appearance of the assessee before the AO was caused by non-receipt of the notice. This in our considered opinion can be construed as reasonable cause u/s 273B for non-compliance by the assessee. Hence, the penalty levied is hereby deleted.

6.

In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 31/08/2023.

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