SMT KANTA RANI W/O SHRI MADAN LAL,SHAHKOT vs. JOINT COMMISSIONER OF INCOME TAX CENTRAL RANGE, JALANDHAR

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ITA 38/ASR/2023Status: DisposedITAT Amritsar07 June 2023AY 2013-144 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The tribunal found that the notice was factually served on the assessee, but agreed that the penalty quantum should be restricted by excluding the Covid period as per the Supreme Court's directions. The AO was directed to recompute the penalty.

What were the facts?

The assessee challenged a penalty levied under Section 272A(2)(c) for non-compliance with a notice issued under Section 133(6). The assessee argued that the Covid period should be exempted and that notice was not properly served.

What were the issues?

Whether penalty under Section 272A(2)(c) is leviable for non-compliance with Section 133(6) notice, and whether the Covid period should be excluded from the penalty computation.

Which sections of the Income-tax Act were involved?

Section 272A(2)(c),Section 133(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR

Before: DR. M. L. MEENA & SH. ANIKESH BANERJEE

For Respondent: Dr. Vedanshu Tripathi, Sr. DR
Hearing: 25.05.2023Pronounced: 07.06.2023

The captioned appeal has been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-5, Ludhiana dated 25.11.2022 in respect of AY 2013-14 challenging therein levy of penalty of Kanta Rani v. Jt. CIT Rs.27,400/- u/s 272A(2)(c) for non-compliance of notice issued u/s 133(6) of the Act.

2.

At the outset, the ld. counsel for the assessee has submitted that the ld. CIT(A) has erred in confirming the penalty u/s 272A(2)(c) by restricting to Rs.27,400/- out of Rs.59,100/- in non-compliance to the notice issued u/s 133(6) of the Act without taking into consideration the Covid period being exempted by the Hon’ble Apex Court. The counsel has also contended that assessee was sent notice on e-mail but was not served any notice by the post. He pleaded that the penalty confirmed may be deleted or modify by excluding exempted Covid period.

3.

Per contra, the ld. DR stands by the impugned order.

4.

We have heard both the sides and perusal of records, impugned order and the written submissions. We find that the ld. CIT(A) had noted that the show cause notice could only be sent through e-mail. However, there was non-compliance to the notice issued u/s 133(6) of the Income Tax Act, in spite of the fact that the notice having been served on the assessee. The ld. AR argued that the appellant assessee has updated his e-mail on the Income-Tax Portal on 29.03.2019. However, he has not Kanta Rani v. Jt. CIT informed the AO regarding this change of e-mail address of the appellant.

We understand that if an e-mail address is updated on the Income Tax Portal on 29.03.2019, then the subsequent communications by the Income Tax Authorities would automatically uploaded on the system and send to the updated new e-mail address of the appellant assessee. It is further, seen from pg. no. 36 of the paper book, that the assessee had done last login on 12th April, 2023 at 11.58 AM on the updated e-mail address which shows that he has not done any communication of the Income Tax proceedings taken by the Income Tax Department against him by way of notice issued u/s 133(6) of the Act. Thus, the contention of the assessee, that assessee has not been served the notice u/s 133(6) is factually incorrect.

5.

However, the assessee’s request that the quantum appeal of penalty u/s 272A(2)(c) may be limited to the period excluding the Covid period exempted by the Apex Court is justified. Accordingly, AO is directed to levy of penalty u/s 272A(2)(c) for the period of 30.07.2019 to 14.04.2020, in the light of the Hon’ble Apex Court judgment delivered on miscellaneous application No. 665 of 2021 in SMW(C) No. 3 of 2020 whereby their

Kanta Rani v. Jt. CIT Lordship has extended period of limitation for any such appeal application or proceedings from 15.03.2020 till 14.03.2021.

6.

In the above view, penalty levied u/s 272A(2)(c) is restricted for the period from 30.07.2019 to 14.03.2020. According, the AO is directed to re- compute the penalty amount for the period restricted as above.

7.

In the backdrop of the above discussion, the appeal of the assessee stand allowed in the terms indicated as above.

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