GOPALAPILLAI SREEKUMAR,SOORANAD,KOLLAM V. INCOME TAX OFFICER,CENTRAL CIRCLE-2,BBN, CENTRAL CIRCLE-II,BBN

ITA 48/CTK/2025

AI Insights

The case involves appeals by Gopal Pillai Sreekumar against penalties levied by the Income Tax Officer, Central Circle-2, Bhubaneswar, under section 272A(1)(d) of the Income Tax Act for non-compliance with notices during the assessment proceedings for four consecutive assessment years. The penalties were imposed after the completion of the assessment orders, which the Tribunal noted indicated that the Assessing Officer had condoned the non-compliance at that time. The assessee argued that the non-compliance was due to his mother's severe health issues, which required his presence out of station, thus preventing him from responding to the notices. The Tribunal agreed with the assessee, noting the reasonable cause and the improper timing of the penalty imposition, leading to the deletion of the penalties.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25958 (ITAT-CUTTACK)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Laws Referred To: Section 272A(1)(d) of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S.C.MOHANTY
• Assessee Lawyers: SUBIT KUMAR SAHU
• Keywords: Reasonable cause

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE MANISH AGARWAL ITA No.48/CTK/2025: ITA No.4 ITA No.50 ITA No.5 Gopal Pillai Sreekumar, Sooranad, Kollam, Kerala 690522 PAN/GIR No. (Appellant Per Bench These are of the ld CIT(A), Bhubaneswar penalty levied u/s.272A(1)(d) of the Act of Rs.10,000/ assessment year 2. Shri Subit Kumar Sahu S.C.Mohanty, Sr. IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND MANISH AGARWAL, ACCOUNTANT MEMBER 48/CTK/2025: Assessment Year : ITA No.49/CTK/2025 : Assessment Year : 201 50/CTK/2025 : Assessment Year : 201 53/CTK/2025 : Assessment Year : 20 Gopal Pillai Sreekumar, Sooranad, Kollam, Kerala- Vs. Income Tax Officer, Central Circle-2, Bhubaneswar No.AKMPS 1435 P (Appellant) .. ( Respondent Assessee by : Shri Subit Kumar Sahu, Revenue by : Shri S.C.Mohanty, Sr DR Date of Hearing : 28/01/20 Date of Pronouncement : 28/01/20 O R D E R These are appeals filed by the assessee against the of the ld CIT(A), Bhubaneswar-2, all dated 13.11.2024 penalty levied u/s.272A(1)(d) of the Act of Rs.10,000/- essment years 2017-18, 2018-19, 2019-20 and 2020-21, respectively Subit Kumar Sahu, ld AR appeared for the assessee and Shri Sr. DR appeared for the revenue. P a g e 1 | 4 IN THE INCOME TAX APPELLATE TRIBUNAL, MEMBER , ACCOUNTANT MEMBER Assessment Year : 2017-18 /CTK/2025 : Assessment Year : 2018-19 /CTK/2025 : Assessment Year : 2019-20 /CTK/2025 : Assessment Year : 2020-21 Income Tax Officer, Central 2, Bhubaneswar Respondent) Adv : Shri S.C.Mohanty, Sr DR 2025 025 filed by the assessee against the separate orders 13.11.2024 confirming the each for the 21, respectively. the assessee and Shri ITA No.48/CTK/2025: Assessment Year : 2017-18 ITA No.49/CTK/2025 : Assessment Yea r : 2018-19 ITA No.50/CTK/2025 : Assessment Yea r : 2019-20 ITA No.53/CTK/2025 : Assessment Year : 2020-21 P a g e 2 | 4 3. Ld AR drew our attention to the respective assessment orders and penalty orders, which have been passed under: Asst.Year Assessment order dt. Penalty order dt. 2017-18 25.9.2021 17.3.2022 2018-19 25.9.2021 17.3.2022 2019-20 25.9.2021 17.3.2022 2020-21 29.9.2021 30.3.2022 It was the submission that the penalty orders have been passed by the Assessing Officer much after the assessment orders have been passed. It was the submission that penalty u/s.272A(1)(d) of the Act was to be levied for non-compliance of notices issued in the course of assessment proceedings and this penalty has been levied after the completion of the assessment proceedings. 4. In reply, ld Sr DR vehemently supported the levy of penalty. It was the submission that the penalty is levied due to non-compliance of notices and, therefore, the levy of penalty should be confirmed. 5. In reply, ld AR submitted that the assessee had filed written submissions explaining the reasons for non-compliance of the impugned notices during the assessment proceedings owing to illness of his aged mother suffering from mental retardation coupled with psychotic falsie for which, the assessee was compelled to stay out of station and could not ITA No.48/CTK/2025: Assessment Year : 2017-18 ITA No.49/CTK/2025 : Assessment Yea r : 2018-19 ITA No.50/CTK/2025 : Assessment Yea r : 2019-20 ITA No.53/CTK/2025 : Assessment Year : 2020-21 P a g e 3 | 4 comply with the notices issued by the Assessing Officer. It was the submission that the penalty may be cancelled. 6. We have considered the rival submissions. A perusal of the provisions of Section 272A(1)(d) of the Act shows that the penalty is to be levied for non-compliance of notices in the course of assessment proceedings. In the present case, the penalty admittedly is levied by the Assessing Officer after completion of the assessment proceedings. This clearly shows that the Assessing Officer on his own action had condoned the non-compliance of notices when he passed the assessment order. Even the assessee has shown reasonable cause for non-compliance of notices issued by the Assessing Officer owing to the illness of his mother. This being so, the penalty as levied by the Assessing Officer and confirmed by the ld CIT(A) u/s.272A(1)(d) of the Act stands deleted for the above four assessment years. 7. In the result, appeals of the assessee stand allowed. Order dictated and pronounced in the open court on 28/01/2025. Sd/- sd/- (George Mathan) (Manish Agarwal) JUDICIAL MEMBER ACCOUNTANT MEMBER Cuttack; Dated 28/01/2025 B.K.Parida, SPS (OS) ITA No.48/CTK/2025: Assessment Year : 2017-18 ITA No.49/CTK/2025 : Assessment Yea r : 2018-19 ITA No.50/CTK/2025 : Assessment Yea r : 2019-20 ITA No.53/CTK/2025 : Assessment Year : 2020-21 P a g e 4 | 4 Copy of the Order forwarded to : By order Sr.Pvt.Secretary ITAT, Cuttack 1. The Appellant : Gopal Pillai Sreekumar, Sooranad, Kollam, Kerala-690522 2. The Respondent: Income Tax Officer, Central Circle-2, Bhubaneswar 3. The CIT(A)- Bhubaneswar-2. 4. Pr.CIT, Bhub aneswar-2. 5. DR, ITAT, 6. Guard file. //True Copy// "