9911796707
TMI Blog2022 (8) TMI 1187X X X X Extracts X X X X X X X X Extracts X X X X ..... manifest that there was a due compliance by the assessee to the notices issued under section 143(2)/142(1) of the Act and further the AO has also not recorded any satisfaction in the assessment order for initiating the penalty under section 271(1)(b) - Thus the penalty levied by the Assessing Officer under section 271(1)(b) for the assessment year 2015-16 is not justified and the same is deleted. AY - 2016-17 - AO levied the penalty for non compliance of the notice issued under section 143(2) and 143(1). The Assessing Officer has not specified in the order as against which notice, whether issued under section 143(2) or 143(1), the penalty was levied. We further note that in the assessment order, the Assessing Officer has recorded the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Respondent : Sh. A.K. Singh, Sr. DR ORDER PER VIJAY PAL RAO, J.M. These two appeals by the assessee are directed against the composite order dated 25.04.2019 arising from the penalty orders passed under section 271(1)(b) of the Income Tax Act for the assessment years 2015-16 and 2016-17, respectively. 2. The assessee has raised the common grounds in these appeals. The grounds raised for the assessment year 2015-16 are as under:- 1. Because on the facts and in the circumstances of the case the Ld. A.O. erred for confirming the penalty u/s. 271(1)(b) of the Income Tax Act, 1961 amounting to Rs. 10,000/- as imposed by the Ld. A.O. 2. Because on the facts and in circumstances of the case the order passed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tset, we note that the Assessing Officer in the assessment order passed under section 143(3) has recorded the facts of issuing the notice as well as response on behalf of the assessee at page no. 1 and 2 as under:- Return of income was filed on 22.09.2015 and declaring income of Rs. 5,72,390/-. The case was selected for scrutiny under limited category. Consequently, a notice u/s 143(2) of the Income Tax Act dated 07.04.2016 was issued and duly served on the assessee fixing the date of compliance for 25.04.2016. Further notices u/s 142(1) of the Income Tax Act, 1961 were issued on dated 10.02.2017, 28.04.2017, 15.06.2017 and 06.11.2017 duly served upon the assessee. In compliance to said notices u/s 143(2)/142(1) Shri Ajeet Kumar Sarraf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... return income and not made any addition. He has referred to the assessment order passed under section 143(3) on 29.11.2018 and submitted that the assessee complied with the notice issued by the Assessing Officer under section 142(1) and after considering the reply of the assessee, the Assessing Officer has framed the assessment on the returned income itself. Thus, when the Assessing Officer has accepted the reply of the assessee, then the penalty levied under section 271(1)(b) of the Act is not justified and the same may be deleted. 8. On the other hand, learned DR has submitted that the assessee has not complied with the notice issued under section 143(2) and consequently the Assessing Officer initiated the penalty proceedings under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry notices, a show cause notice u/s 271(1)(b) dated 04.10.2018 issued to the assessee fixing the date of compliance on 12.10.2018, requiring to explain as to why penalty u/s 271(1)(b) not imposed on him. But thereafter neither assessee attended nor any compliance to the statutory notices made. 2. From the above, it is clear that the assessee has nothing to say for the default of making non compliance of the above mentioned statutory notices. Since the assessee has not offered any explanation for his non cooperative attitude towards assessment proceedings as well as proceedings u/s 271(1)b) of the I.T. Act. I have no option but to complete the penalty proceedings treating the assessee being in willful default for non compliance of statu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon the assessee s e-mail address on 10/08/2017. Further notices u/s 142(1) of the I.T. Act 1961 were issued on 10/05/2018, 04/06/2018, 04/09/2018 respectively and no compliance were made. Further a show cause notice dated 04/09/2018 was issued and date fix for compliance on 12/10/2018 but no compliance has been made by the assessee. Therefore penalty of Rs. 10,000/- u/s 271(1)(b) has been imposed on 26.10.2018. In compliance to notices u/s 142(1) assessee furnished its reply online on 12/11/2018 alongwith Audited Report u/s 44AB, Computation of income, Balance-sheet, P L account and details of interest claimed during the year and ledger copy of interest paid interest received. Assessee also furnished details of monthly opening and clos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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