Ratakonda Ravi, Madanapalli V. ITO, Ward-1, Madanapalli

ITA 203/Hyd/2023

AI Insights

The case involves Ratakonda Ravi, the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals) - National Faceless Appeal Centre, Delhi, which had imposed penalties under section 271(1)(b) of the Income Tax Act, 1961, for non-compliance with notices under section 142(1) on four occasions during the assessment year 2015-16. The appellant's representative argued that the assessee had cooperated with the assessment proceedings, evidenced by the completion of the assessment order under section 143(3) of the Act, and that the non-compliance was due to medical reasons. The Departmental Representative opposed the appeal, emphasizing the importance of strict compliance to maintain the integrity of the assessment process. The Tribunal's decision reflected a compromise, imposing a penalty for one instance of non-compliance while dismissing the others.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133235 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-05-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: DB-B
• Next Hearing Date: 16-05-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 05-04-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 142(1)

Judgement Text

आयकर अपीलीय अधिकरण, हैदराबाद पीठ में IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “B”, HYDERABAD BEFORE SHRI RAMA KANTA PANDA, ACCOUNTANT MEMBER & SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER आ.अपी.सं / ITA No. 203/Hyd/2023 (निर्धारण वर्ा / Assessment Year: 2015-16) Ratakonda Ravi, Madanapalli [PAN No. AAGHR2421E] Vs. Income Tax Officer, Ward-1, Madanapalli (अपीलधर्थी / Appellant) (प्रत्‍यर्थी / Respondent) निर्धाररती द्वधरध/Assessee by: Shri Kiran Manohar, AR रधजस्‍व द्वधरध/Revenue by: Shri Kumar Aditya, DR सुिवधई की तधरीख/Date of hearing: 17/05/2023 घोर्णध की तधरीख/Pronouncement on: 19/05/2023 आदेश / ORDER PER K. NARASIMHA CHARY, JM: Aggrieved by the order dated 09/02/2023 passed by the learned Commissioner of Income Tax (Appeals)- National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), in the case of Ratakonda Ravi (“the assessee”) for the assessment year 2015-16, assessee preferred this appeal. 2. Penalty under section 271(1)(b) of the Income Tax Act, 1961 (for short “the Act”) was levied for non-compliance of notice under section 142(1) of the Act on four occasions, namely, 22/12/2020, 10/02/2021, 05/07/2021 and 15/07/2021. Learned AR submits that the learned Assessing Officer passed assessment order under section 143(3) of the Act on 21/09/2021 and that itself shows that the assessee co-operated with ITA No. 203/Hyd/2023 Page 2 of 3 the assessment proceedings and the assessee was prevented on such occasions due to medical reasons. Learned AR, therefore, prayed that inasmuch as the assessee co-operated with the assessment proceedings, assessment order was passed after hearing the assessee only, the levy of penalty is not invited and the same may be deleted. 3. Per contra, learned DR submitted that if this sort of lapse on the part of the assessee is allowed, it would create a lot of problem to the authorities because the assessees may appear before the learned Assessing Officer in the last minute and say that ultimately they complied with the notices. He vehemently opposed the contentions of assessee. 4. We have gone through the record in the light of the submissions made on either side. It could be seen from the order under section 271(1)(b) of the Act that the assessee failed to comply with the notice under section 142(1) of the Act on four occasions, stated supra, which resulted in levy of penalty at Rs. 10,000/- for each occasion. Having regard to the fact that ultimately the assessment proceedings could be completed with the co-operation of the assessee, but at the same time, to strike a balance between the conduct of the assessee and need to take a lenient view, we sustain the penalty for one occasion at Rs. 10,000/- and delete the balance. 5. In the result, appeal of assessee is treated as partly allowed. Order pronounced in the open court on this the 19 th day of May, 2023. Sd/- Sd/- (RAMA KANTA PANDA) (K. NARASIMHA CHARY) ACCOUNTANT MEMBER JUDICIAL MEMBER Hyderabad, Dated: 19/05/2023 TNMM ITA No. 203/Hyd/2023 Page 3 of 3 Copy forwarded to: 1. Sri Ratakonda Ravi, 15-15, C.T.M. Road, Madanapalli. 2. Income Tax Officer, Ward-1, Madanapalli. 3. DR, ITAT, Hyderabad. 4. GUARD FILE TRUE COPY ASSISTANT REGISTRAR ITAT, HYDERABAD