JASMINE CONTRACTORS P.LTD,NEW DELHI vs. ITO, WARD 1(3), FARIDABAD

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ITA 776/DEL/2023Status: DisposedITAT Delhi04 August 2023AY 2016-172 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 the penalty under Section 271(1)(b) was wrongly imposed as the assessee had complied with the notice before the due date. Therefore, the penalty was directed to be deleted.

What were the facts?

The assessee was issued a notice under Section 271(1)(b) for non-compliance with a notice dated 24.09.2018, which fixed a hearing for 08.10.2018. However, the assessee had already filed the required documents on 04.10.2018, four days before the scheduled hearing.

What were the issues?

Whether a penalty under Section 271(1)(b) is leviable when the assessee has complied with the notice before the specified date.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: C: NEW DELHI

Before: SHRI CHANDRA MOHAN GARG & SHRI PRADIP KUMAR KEDIA

Hearing: 01.08.2023Pronounced: 04.08.2023

Date of Hearing : 01.08.2023 Date of Pronouncement : 04.08.2023 ORDER PER CHANDRA MOHAN GARG, J.M. This appeal has been filed against the order of Ld. NFAC, Delhi dated 28.01.2023 for AY 2016-17.

2.

We have heard arguments of both the sides from the penalty order we note that the Assessing Officer imposed penalty u/s. 271(1)(b) of the I.T Act 1961 (for short the ‘ Act’) of Rs. 10,000/- on account of non compliance of notice dated 24.09.2018 wherein the assessee was called to appear on 08.10.2018. From top para at page 2 of assessment order dated 06.12.2018 u/s. 143(3) of the Act for AY 2016-17 we note that the Assessing Officer mentioned about the issuance of said notice dated 24.09.2018 wherein date of hearing was fixed on 08.10.2018 and in the same para Assessing Officer noted that on 04.10.2018 the assessee company has filed copies of the bank book along with names of the share holder to whom shares were allotted during the year. In this back drop we are unable to agree with the conclusion of authorities below imposing and upholding penalty u/s. 271(1)(b) of the Act on the assessee for non compliance of notice dated 24.09.2018 which in fact was replied by the assessee four days before the fix date on 04.10.2018. Accordingly, sole grievance of assessee is allowed and the Assessing Officer is directed to delete the impugned penalty.

3.

In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 04.08.2023.

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