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2024 (8) TMI 930 - AT - Income Tax


Issues:
Penalty u/s 272A(1)(d) for non-compliance of notices u/s 142(1)

Detailed Analysis:
The appeal was filed against the penalty imposed on the assessee for non-compliance of notices issued under section 142(1) of the Income Tax Act. The assessee had responded to subsequent notices during the assessment proceedings, leading to the completion of assessment under section 143(3) of the Act. The Assessing Officer (AO) initiated penalty proceedings under section 272A(1)(d) due to the assessee's failure to respond to specific notices. The AO imposed a penalty of Rs. 20,000 for two defaults related to non-compliance with notices issued under sections 143(2) and 142(1). The assessee contended that the penalty was unjustified, citing relevant case laws that emphasized the completion of assessment under section 143(3) as condoning earlier non-compliances. The assessee requested the deletion of the penalty based on these arguments.

The assessee relied on judgments such as Rambhai Kanjibhai Patel vs. The DCIT and Saleem Ahmed Khan vs. Income Tax Officer to support their contention that penalty under section 272A(1)(d) was not warranted when the assessment had been completed under section 143(3). These cases highlighted that the AO is deemed to have condoned earlier non-compliances when subsequent details are furnished leading to the completion of assessment. The assessee argued that the penalty for non-compliance should be deleted based on these legal principles.

The Appellate Tribunal considered the submissions of both parties and reviewed the case laws cited by the assessee. The Tribunal found that since the assessee had responded to subsequent notices and the assessment was completed under section 143(3), the penalty under section 272A(1)(d) was not justifiable. The Tribunal concluded that the AO had condoned the earlier non-compliances by accepting the subsequent information provided by the assessee. Therefore, the Tribunal set aside the order of the Commissioner of Income Tax (Appeals) and directed the AO to delete the penalty imposed under section 272A(1)(d).

In conclusion, the Tribunal allowed the appeal of the assessee, ruling in favor of deleting the penalty imposed for non-compliance with notices under section 142(1) based on the completion of assessment under section 143(3) and relevant legal precedents.

 

 

 

 

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