NAYNA MAHESHCHANDRA MODI, BHARUCH V. THE INCOMETAX OFFICER WARD 1(1) BHARUCH, , BHARUCH

ITA 140/SRT/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 7484 (ITAT-SURAT)
• Duration Of Justice: 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 23-04-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 07-02-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 142(1); 274

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI BIJAYANAND PURUSETH ACCOUNTANT MEMBER ITA No. 140/Srt/2024 (Assessment Year 2020-21) (Physical hearing) Nayana Maheshchandra Modi, A/19, Hitesh Nagar Society, New Civil Road, Bharuch-392001 PAN No. ADEPM 4031 P Vs. I.T.O., Ward (1), Bharuch. Appellant/ assessee Respondent/ revenue Assessee represented by Ms. Himali Mistry , C.A. Department represented by Shri Vinod Kumar, Sr. DR Date of Institution of Appeal 09/02/2024 Date of hearing 24/04/2024 Date of pronouncement 30/04/2024 Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of learned National Faceless Appeal Centre, Delhi (NFAC)/Commissioner of Income Tax (Appeals) (in short, the ld. CIT(A)) dated 19/013/2024 for the Assessment Year (AY) 2020-21. The assessee has raised following grounds of appeal: “1. On the facts and circumstances of the case the ld. CIT(A) was not justified in confirming penalty u/s 272A(1)(d) of the I.T. Act, 1961. 2. with the subsequent submissions by the appellant not having come in the way of assessing the income or hampering the assessment, penalty levied u/s 272A(1)(d) of the act is required to be deleted. 4. Appellant craves leave to add, alter or vary any grounds of appeal” 2. Rival submissions of the parties heard and record perused. The learned Authorised Representative (ld. AR) of the assessee submits that the assessment was completed under Section 143(3) rws 144B of the Income Tax Act, 1961 (in short, the Act) on 26/09/2022 by making addition of Rs. 55,96,780/- under section 56(2)(x) of Income Tax Act. The assessment was completed on Nayana Maheshchandra Modi, ITA No. 140/Srt/2024 2 furnishing complete information in response to various notices issued by the Assessing Officer. The Assessing Officer levied penalty under Section 272A(1)(d) of Rs. 30,000/- for non-compliance of three notices issued under Section 142(1) of the Act as recorded in para 3 of his order dated 21/09/2022. On appeal before the ld. CIT(A), the action of Assessing Officer was upheld. The ld. AR of the assessee submits that the Coordinate Benches of the Tribunal in a number of decisions held that subsequent compliance of notices under section 142(1) is a sufficient compliance and penalty for non-compliance not leviable. The ld. AR of the assessee also furnished screen shot of various responses made during assessment in respect of various notices issued by the Assessing Officer. To support her submission, the ld. AR of the assessee relied upon the decision of Delhi Tribunal in Akhil Bhartiya Prathmik Samshak Sangh Bhawan Trust Vs ADIT, 5 DTR 0429 (Delhi Trib) and Jayesh Kumar G. Macwan Vs Vs DCIT in ITA No. 392/Srt/2022 and 21 to 25 Srt/2023, copies of the decisions are filed on record. 3. On the other hand, the learned Senior Departmental Representative (Sr. DR) for the revenue supported the orders of the lower authorities. 4. We have considered the submissions of both the parties and perused the record carefully. There is no dispute that during the assessment, the Assessing Officer fixed the date of hearing on several occasions and ultimately assessment was completed under Section 143(3) rws 144B of the Act on the basis of information provided by the Assessee. The Assessing Officer issued show cause notice under section 274 read with section 272(A)(1)(d) dated 05.08.2022 for levying of penalty for non-compliance of various notices under Section 142(1). The Nayana Maheshchandra Modi, ITA No. 140/Srt/2024 3 Assessing Officer recorded that the assessee filed her reply but the same was not found acceptable. The Assessing officer has not recorded the contents of reply filed by the assessee. The Assessing Officer accordingly levied penalty of Rs. 30,000/- vide order dated 21/09/2022. On further appeal before the ld. CIT(A), penalty was confirmed by taking view that the assessee in his submissions has accepted that all the notices were compiled by the assessee, although delayed. 5. We find that in Akhil Bhartiya Prathmik Samshak Sangh Bhawan Trust Vs ADIT (supra), the Coordinate Bench of Delhi Tribunal held that when assessment having been made under Section 143(3) and not under Section 144, it means that subsequent compliance in the assessment proceedings was considered as good compliance and the defaults committed earlier were ignored by the A.O., hence, penalty under Section 271(1)(b) could not be levied. Further, the division bench of this Tribunal in Ramesh Bhai Kanjibhai Patel Vs DCIT in ITA no. 106 to 110/Srt/2023 held that no penalty under Section 271(1)(b) of the Act could be levied when an assessment has been completed under Section 143(3) of the Act, wherein the Assessing Officer is deemed to have condoned the absence of the assessee or his authorised representative on earlier occasions when subsequently, the details were furnished by him and the assessment were ultimately completed under Section 143(3) of the Act. Considering the aforesaid factual and legal position, we are of the view that this is not a fit case for levy of penalty under Section 272A(1)(d) of the Act. Therefore, we direct the Assessing Officer to delete the entire penalty levied Nayana Maheshchandra Modi, ITA No. 140/Srt/2024 4 vide order dated 21/09/2022. In the result, grounds of appeal raised by the assessee are allowed. 6. In the result, this appeal of assessee is allowed. Order announced in open court on 30 th April, 2024. Sd/- Sd/- (BIJAYANAND PURUSETH) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Surat, Dated: 30/04/2024 *Ranjan Copy to: 1. Assessee – 2. Revenue – 3. CIT 4. DR By order 5. Guard File Sr. Private Secretary, ITAT, Surat