2017 (9) TMI 1922 - AT - Income Tax

Levy of penalty u/s 271(1)(b) - non-compliance of certain notices issued to the assessee by the Assessing Officer from time to time - assessment has been completed u/s 143(3), wherein the revised return filed by the assessee declaring loss has been accepted by the Assessing Officer after calling for various records from the assessee - HELD THAT - Though there may have been non-compliance on certain dates/notices, but ultimately all the due compliance and replies have been filed by the assessee and had participated in the proceedings through its authorised representatives before the AO. Before the ld. CIT (A), assessee had contended that the time allowed for compliance of notice dated 30/9/2014 was not sufficient and questionnaire also were not specific, therefore, assessee could not make proper compliance. However, later on assessee had filed all the details, which have been duly examined and accepted by the AO. Penalty under section 271(1)(b) for non-compliance of particular notice is merely technical and venial in nature, and therefore, we do not find that it fit to be case for levy of penalty u/s 271(1)(b). Accordingly, penalty levied by the Assessing Officer and as confirmed by the ld. CIT (A) is deleted. - Appeal of the assessee is allowed.

Summary

Issues:
Penalty under section 271(1)(b) for non-compliance of notices issued by the Assessing Officer.

Analysis:
The appeal was filed against the penalty order under section 271(1)(b) for the assessment year 2012-13. The Assessing Officer had levied a penalty of &8377; 10,000 for non-compliance with notices issued to the assessee. The ld. CIT (A) upheld the penalty order citing non-cooperation by the assessee due to non-compliance with the notices. The assessment was completed under section 143(3) with the revised return of loss being accepted after various interactions with the assessee's representatives. The Assessing Officer acknowledged the submission of necessary details and the acceptance of the revised loss amount. The assessee contended that the time provided for compliance was insufficient and the questionnaire was not specific, leading to delayed compliance. However, all required details were eventually submitted and accepted by the Assessing Officer. The tribunal observed that although there were instances of non-compliance, the overall participation and submission of details by the assessee indicated a cooperative approach. Therefore, the tribunal deemed the penalty for non-compliance as technical and venial, leading to the deletion of the penalty imposed by the Assessing Officer and confirmed by the ld. CIT (A).

In conclusion, the tribunal allowed the appeal of the assessee, emphasizing that the penalty under section 271(1)(b) for non-compliance with a specific notice was unwarranted given the subsequent submission and acceptance of all required details by the assessee. The tribunal considered the overall conduct of the assessee in participating in the proceedings and providing necessary information, leading to the deletion of the penalty.