2015 (10) TMI 2435 - AT - Income Tax

Penalty under S.271(1)(b) - non-compliance on the part of the assessee to the notices issued under section 153A, 142(1) and 143(2) - Held that - Facts and circumstances of the case of Shri Upendra Kumar(HUF), Hyderabad, for the years under consideration being similar, and the order of the learned CIT(A) impugned in these appeals being common as the one considered as the one already considered by the Tribunal in the case of the connected assessee, viz. Shri Upendra Kumar(Ind) 2015 (10) TMI 1308 - ITAT HYDERABAD following the above order of the Tribunal, the impugned order of the learned CIT(A) confirming the penalties imposed by the Assessing Officer under section 271(1)(b) for the years under consideration is set aside and the matter is remitted back to him for disposing of the appeals of the assessee on merits, after giving proper and sufficient opportunity of being heard. As directed in the above order of this Tribunal, assessee shall directed comply with the notices issued by the learned CIT(A) and extend full cooperation in order to enable the learned CIT(A) to dispose of the matter expeditiously. - Decided in favour of assessee for statistical purposes.

Summary

Issues:
Assessment of penalties under section 271(1)(b) for non-compliance with notices under sections 142(1) and 143(2) of the Income Tax Act, 1961.

Analysis:

1. The appeals were filed by the assessee against the penalties imposed by the Assessing Officer under section 271(1)(b) for the assessment years 2003-04 to 2009-10. The penalties were confirmed by the Commissioner of Income-tax (Appeals) due to the non-compliance of the assessee with notices issued under sections 142(1) and 143(2) of the Act. The assessee, being an HUF, failed to furnish returns of income within the stipulated time, leading to the completion of assessments by the Assessing Officer under section 144 read with section 153C.

2. The non-compliance by the assessee with the notices issued by the Assessing Officer under sections 142(1) and 143(2) resulted in the initiation of penalty proceedings under section 271(1)(b) of the Act. The assessee did not offer any explanation during the penalty proceedings, leading to the imposition of penalties of Rs. 10,000 per year for each of the assessment years under consideration.

3. The appeals filed by the assessee before the Commissioner of Income-tax (Appeals) were disposed of ex-parte due to the non-compliance of the assessee with the notices issued by the Commissioner. The penalties imposed by the Assessing Officer were confirmed in the ex-parte order by the Commissioner. Aggrieved by this decision, the assessee preferred appeals before the Tribunal.

4. The Tribunal, after considering the submissions made by the counsel for the assessee, set aside the orders of the Commissioner confirming the penalties. The Tribunal found it fair to give the assessee another opportunity to offer explanations for the non-compliance with the notices under sections 153C, 142(1), and 143(2). The matter was remitted back to the Commissioner for disposal after providing proper and sufficient opportunity for the assessee to be heard.

5. Following the decision in a similar case, the Tribunal allowed the appeals of the assessee for statistical purposes. The order pronounced on 4.9.2015 directed the assessee to comply with the notices issued by the Commissioner and extend full cooperation for the expeditious disposal of the matter.

This detailed analysis highlights the issues related to the assessment of penalties under section 271(1)(b) for non-compliance with statutory notices and the subsequent legal proceedings leading to the remittance of the matter for proper adjudication.