2018 (1) TMI 1425 - AT - Income Tax

Levy of penalty u/s 271(1)(b) - assessee failed to comply with notice under section 142(1) of the Act on six occasions except partial compliance of notice dated 2.3.2016 - Held that - we are of the view that there is no plausible reason which prevented the assessee from compliance of the notice issued by the AO, therefore, penalty under section 271(1)(b) of the Act has rightly been imposed. - decided against assessee.

Summary

Issues: Appeal against levy of penalty under section 271(1)(b) of the Income Tax Act, 1961 for non-compliance with notices under section 142(1) of the Act.

Analysis:
1. The appeal before the Tribunal was against the order of the ld.CIT(A)-5, Ahmedabad dated 2.2.2018 for the Assessment Year 2014-15.
2. The sole grievance of the assessee was the confirmation of a penalty amounting to ?10,000 under section 271(1)(b) of the Income Tax Act, 1961.
3. The assessee submitted a one-line response contending that the appeal be decided on merit.
4. The ld.AO imposed the penalty as the assessee failed to comply with notices under section 142(1) of the Act on six occasions, except for partial compliance on one occasion. The assessee did not provide any reasonable cause for its non-compliance.
5. The assessee's submission before the ld.CIT(A) included a plea of nonservice of notice, but no evidence was provided to support this claim. The assessee did not explain the non-compliance before the AO or the ld.CIT(A) when asked to do so.
6. After reviewing the facts, the Tribunal concluded that there was no valid reason for the assessee's non-compliance with the notices, leading to the rightful imposition of the penalty under section 271(1)(b) of the Act.
7. The Tribunal found no merit in the appeal and dismissed it, upholding the penalty imposed.
8. The appeal of the assessee was ultimately dismissed, and the order was pronounced in court on 9th January 2019 at Ahmedabad.