BALAKUMAR ANUSIA,SIVAGANGA V. ASSISTANT COMMISSIONER OF INCOME TAX, MADURAI

ITA 1641/CHNY/2025

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The case involves Balakumar Anusia, the appellant, who appealed against the penalty imposed by the Assistant Commissioner of Income Tax, International Taxation Circle, Madurai. The penalty was levied for non-compliance with notices issued during the assessment proceedings for the year 2018-19. The Assessing Officer had reopened the case and issued notices under sections 142(1) and 143(2) of the Income Tax Act, 1961, which the assessee failed to comply with. The Tribunal dismissed the appeal, confirming the penalty as justified.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772724 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N. RAJA KUMAR
• Section: 147; 148; 142(1); 131

Judgement Text

"आयकर अपीलीय अिधकरण, ’ए’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी एस.आर. रगुनाथॎ, लेखा सद˟ क े समƗ Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri S.R. Raghunatha, Accountant Member आयकर अपील सं./I.T.A. No.1641/Chny/2025 िनधाŊरण वषŊ/Assessment Year: 2018-19 Balakumar Anusia, 239, Aralikottai PO, Tiruppathur Taluk, Sivagangai District, Tamil Nadu 630 210. [PAN:CFCPA9319H] Vs. The Assistant Commissioner of Income Tax, International Taxation Circle Madurai, Madurai. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : None ŮȑथŎ की ओर से/Respondent by : Shri N. Rajakumar, Addl. CIT सुनवाई की तारीख/ Date of hearing : 25.08.2025 घोषणा की तारीख /Date of Pronouncement : 26.08.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 29.05.2025 passed by the ld. Commissioner of Income Tax (Appeals), national Faceless Appeal Centre (NFAC), Delhi for the assessment year 2018-19. 2. The assessee raised 6 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is Printed from counselvise.com I.T.A. No.1641/Chny/25 2 justified in confirming imposition of penalty under section 272A(1)(d) of the Income Tax Act, 1961 [“Act” in short]. 3. When the appeal was taken up for hearing, none appeared on behalf of the assessee nor filed any adjournment petition. On perusal of the records, we note that the assessee has also not filed Vakkalath/power of Attorney authorising any Advocate/ C.A to represent the case. Hence, we proceed to decide the appeal on merits after hearing the ld. DR. 4. We have heard the ld. DR and perused the material available on record. We note that during the course of assessment proceedings, the Assessing Officer reopened the case under section 147 of the Act after following the due procedure as envisaged under section 148A of the Act and issued notice under section 148 of the Act on 16.04.2022. The assessee has filed the return of income in compliance of notice under section 148 of the Act. The Assessing Officer issued notice under section 143(2) of the Act to the assessee on 30.06.2023 to call for information, but, however, there was no response from the assessee. Subsequently, the Assessing Officer issued notice under section 142(1) of the Act on 19.03.2024 to call for details. Again, the assessee has not responded. Since there was no compliance of the notice issued under section 143(2) of the Act dated 30.06.2023 and notice under section 142(1) of the Act Printed from counselvise.com I.T.A. No.1641/Chny/25 3 dated 19.03.2024, the Assessing Officer initiated penalty proceedings under section 272A(1)(d) of the Act and issued penalty notice on 24.05.2024. Further, the Assessing Officer issued a show-cause letter to the assessee dated 26.08.2024 by giving opportunity to file the response on or before 06.09.2024 and the assessee filed the reply on 22.10.2024. The content in the reply of the assessee is reproduced at page 2 of the penalty order. After considering the submission of the assessee and by noting that as per section 272A(1)(d) of the Act, since the assessee failed to comply with a notice under section 142(1) of the Act and section 143(2) of the Act levied penalty of ₹.20,000/- under section 272A(1)(d) of the Act for each default @ ₹.10,000/-. On appeal, the ld. CIT(A) confirmed the penalty levied under section 272A(1)(d) of the Act. 5. We have perused relevant provisions of section 272A(1) of the Act and reproduced the same for ready reference: 272A(1) If any person,- (a) being legally bound to state the truth of any matter touching the subject of his assessment, refuses to answer any question put to him by an income-tax authority in the exercise of its powers under this Act; or (b) refuses to sign any statement made by him in the course of any proceedings under this Act, which an income-tax authority may legally require him to sign; or (c) to whom a summons is issued under sub-section (1) of section 131 either to attend to give evidence or produce books of account or Printed from counselvise.com I.T.A. No.1641/Chny/25 4 other documents at a certain place and time omits to attend or produce books of account or documents at the place or time; or (d) fails to comply with a notice under sub-section (1) of section 142 or sub-section (2) of section 143 or fails to comply with a direction issued under sub-section (2A) of section 142 he shall pay, by way of penalty, [a sum of ten thousand rupees] for each such default or failure. 6. In this case, we note that the Assessing Officer issued notice under section 143(2) of the Act to the assessee on 30.06.2023 for furnishing details. Similarly, the Assessing Officer issued notice under section 142(1) of the Act to the assessee on 19.03.2024 requiring the assessee to furnish the details on or before 23.03.2024. However, we note that the assessee has not complied with the above notices issued by the Assessing Officer. In view of the provisions of section 272A(1)(d) of the Act, as reproduced herein above, the Assessing Officer levied penalty of ₹.20,000/-. We note that as a direct consequence of the assessee’s failure to comply with statutory notices, the Assessing Officer levied penalty under section 272A(1)(d) of the Act. The ld. CIT(A) has observed that the assessee’s failure to comply with statutory notices and lack of satisfactory response to show cause notice, collectively indicate clear non-compliance and accordingly upheld the penalty levied under section 272A(1)(d) of the Act, in our opinion, the Assessing Officer has rightly levied penalty under section 272A(1)(d) of the Act and confirmed by the Printed from counselvise.com I.T.A. No.1641/Chny/25 5 ld. CIT(A), is justified. We find no reason to interfere with the order passed by the ld. CIT(A) and thus, the ground raised by the assessee is dismissed. 7. In the result, the appeal filed by the assessee is dismissed. Order pronounced on 26th August, 2025 at Chennai. Sd/- Sd/- (S.R. RAGHUNATHA) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 26.08.2025 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. Printed from counselvise.com "