9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (1) TMI 618 - AT - Income TaxLevy of penalty u/s 271(1)(b) - non-compliance of hearing notices - assessee has not submitted any explanation regarding non-compliance of the notices issued u/s. 142(1) of the Act, neither by filing reply nor seeking time to file Reply - HELD THAT - The case is adjourned to 09/01/2023, however none appeared on behalf of the assessee and no authorization given to Advocate or Chartered Accountant and no Paper Books is filed before us. Thus it clearly shows that the assessee is not interested in pursuing the appeal both before this Appellate Forum as well as before the Lower Authorities. We find from the Ld. CIT(A) s order that the assessee has not justified for non-compliance to the 142(1) notices issued by the Assessing Officer. We further find from ground no. 3 copy of the adjournment letters said to be enclosed with the appeal papers, but we do not find any such adjournment letters filed before us. Further the assessee has not justified why he has not complied to the notices issued u/s. 142(1) by the Assessing Officer. Thus, we do not find any merits in the grounds raised by the assessee.
Issues:
- Levy of penalty under section 271(1)(b) of the Income Tax Act, 1961 for Assessment Year 2011-12. - Non-compliance of hearing notices and subsequent penalty imposition. - Dismissal of appeal by National Faceless Appeal Centre due to lack of response from the assessee. - Grounds of appeal challenging the penalty imposition and dismissal of appeal. Levy of Penalty under Section 271(1)(b): The case involved an appeal by the Assessee against the penalty order confirming the levy under section 271(1)(b) of the Income Tax Act, 1961. The Assessing Officer believed that an income of Rs. 28,03,775/- had escaped assessment for the Assessment Year 2011-12 due to non-filing of the Income Tax Return. Despite multiple notices and opportunities provided to the assessee, including a show cause notice, the assessee failed to respond adequately, leading to the imposition of a penalty of Rs. 10,000 under section 271(1)(b) of the Act. The penalty was upheld by the Appellate Tribunal due to the assessee's persistent non-compliance with hearing notices and failure to provide satisfactory explanations. Dismissal of Appeal by National Faceless Appeal Centre: The assessee filed an appeal against the penalty order before the National Faceless Appeal Centre. However, the appeal hearings scheduled on various dates were not responded to by the assessee, who also did not submit any written representations. Consequently, the appeal was dismissed by the NFAC based on the principle that not only should an appeal be filed, but it should also be actively pursued for prosecution. The dismissal was supported by various legal precedents emphasizing the importance of effective prosecution of appeals and the consequences of non-appearance or non-compliance by the appellant. Grounds of Appeal and Tribunal's Decision: In the subsequent appeal before the Tribunal, the assessee raised grounds challenging the penalty imposition and the dismissal of the appeal. Despite multiple adjournments sought by the assessee and opportunities provided for representation, the Tribunal observed a lack of interest and effort on the part of the assessee in pursuing the appeal. The Tribunal noted the absence of justifications for non-compliance with notices issued by the Assessing Officer and the failure to provide necessary documentation or explanations. Consequently, the Tribunal dismissed the appeal, emphasizing the lack of merit in the grounds raised by the assessee and the overall disinterest displayed in pursuing the case effectively. In conclusion, the judgment highlighted the importance of compliance with legal procedures, active participation in appeal proceedings, and the necessity of providing adequate justifications and representations to support one's case in tax matters.
|
