2024 (9) TMI 79 - AT - Income Tax

Penalty u/s. 271B - delay of 171 days in filing of the appeal by the assessee - assessee has failed to get its accounts audited as per the provisions of section 44AB - HELD THAT - Since in the instant case the order u/s. 271B was passed on 05.07.2021 and the assessee filed the appeal before the CIT(A) / NFAC on 22.01.2022, therefore, respectfully following the order of the Tribunal in assessee s own case in quantum proceedings 2024 (5) TMI 1462 - ITAT PUNE for assessment year 2017-18, we restore the issue to the file of the CIT(A) / NFAC with a direction to condone the delay in filing of the appeal and decide the issue on merit after giving one opportunity of being heard to the assessee. The grounds raised by the assessee are accordingly allowed for statistical purposes.

Summary

Issues:
1. Condonation of delay in filing appeal against penalty under section 271B of the Income Tax Act, 1961.
2. Condonation of delay in filing appeal against penalty under section 271AAC(1) of the Income Tax Act, 1961.

Issue 1: Condonation of delay in filing appeal against penalty under section 271B of the Income Tax Act, 1961:
The assessee, a trading firm, had its appeal against a penalty of Rs. 55,574 under section 271B dismissed by the CIT(A) due to a delay of 171 days in filing the appeal. The delay was attributed to negligence by the Tax Consultant. The Tribunal noted that in a previous quantum appeal by the same assessee, a delay of 727 days was condoned due to the Covid-19 pandemic period. Consequently, the Tribunal directed the CIT(A) to condone the delay in this case as well and decide the appeal on merit after providing an opportunity for the assessee to be heard. The grounds raised by the assessee were allowed for statistical purposes.

Issue 2: Condonation of delay in filing appeal against penalty under section 271AAC(1) of the Income Tax Act, 1961:
In this issue, the assessee challenged a penalty of Rs. 61,413 under section 271AAC(1) of the Act, which was confirmed by the CIT(A). The delay in filing the appeal was 232 days, and the CIT(A) did not condone the delay due to unsatisfactory reasons provided by the assessee. The Tribunal, after considering the similar issue in the first appeal, directed the CIT(A) to condone the delay in this case as well and decide the appeal on merit after giving the assessee an opportunity to be heard. The appeal was allowed for statistical purposes.

In conclusion, both appeals by the assessee were allowed for statistical purposes, and the Tribunal directed the CIT(A) to condone the delays in filing the appeals against the penalties under sections 271B and 271AAC(1) of the Income Tax Act, 1961, and decide the appeals on merit after providing an opportunity for the assessee to be heard.