2023 (8) TMI 676 - AT - Income Tax

Penalty u/s 271(1)(b) - assessee failed to comply with the notice issued u/s 142(1) - as contented that non-receipt of the notices was the reason for non-compliance - HELD THAT - Looking to the facts and contentions of the assessee that the notice was not received by the assessee. Therefore, assessee was having reasonable cause for non-compliance of the notice hence, the impugned penalty is hereby, deleted. Appeal of the assessee is allowed.

Summary

Issues involved:
The issues involved in this case are the imposition of penalty under section 271(1)(b) of the Income Tax Act, 1961 for alleged non-compliance with a notice issued under section 142(1) of the Act.

Imposition of Penalty u/s 271(1)(b):
The appeal was filed against the order passed by Ld.CIT(A) confirming the penalty imposed under section 271(1)(b) of the Income Tax Act, 1961. The appellant contended that the penalty was confirmed without appreciating that subsequent compliances were made after assessment under section 147 read with section 143(3) of the Act. The appellant argued that the alleged non-compliance of the notice issued under section 142(1) was not deliberate and had reasonable cause, invoking section 273B of the Act. The Assessing Officer had imposed a penalty of INR 10,000 on the assessee, which was sustained by Ld.CIT(A).

Reasonable Cause for Non-Compliance:
The Authorized Representative of the assessee submitted that the notice was not received, leading to non-compliance. It was argued that non-receipt of the notices was the reason for the non-compliance and that the assessee had a reasonable cause for the same. On the contrary, the Senior DR opposed these submissions, emphasizing that the assessee should have complied with the notice. However, after considering the facts and contentions, the Tribunal held that since the notice was not received by the assessee, there was a reasonable cause for non-compliance. Consequently, the impugned penalty under section 271(1)(b) was deleted, and the appeal of the assessee was allowed.

Separate Judgement by Judge:
No separate judgment was delivered by any specific judge in this case.

This summary provides a detailed overview of the issues involved in the legal judgment, the arguments presented by the parties, and the final decision of the Tribunal regarding the imposition of penalty under section 271(1)(b) of the Income Tax Act, 1961.