DEVNADI AVISORY PVT. LTD., HOWRAH V. INCOME TAX OFFICER, WARD-13(1), KOLKATA, KOLKATA

ITA 226/KOL/2023

AI Insights

Devnadi Advisory Pvt. Limited appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, which confirmed a penalty of Rs. 20,000 imposed by the Assessing Officer for non-compliance with two notices. The Tribunal examined the circumstances of the notices and found that the first notice was not served, and the second was complied with, leading to the conclusion that there was no intentional non-compliance by the assessee.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129054 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 07-05-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 19-03-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271B

Judgement Text

ITA No. 226/KOL/2023 A.Y. 2013-2014 Devnadi Advisory Pvt. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘A’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President & Dr. Manish Borad, Accountant Member I.T.A. No. 226/KOL/2023 Assessment Year: 2013-2014 Devnadi Advisory Pvt. Limited,..................Appellant 13, Becharam Choudhary Lane, Howrah-711101 [PAN: AACCD2753N] -Vs.- Income Tax Officer,................................Respondent Ward-13(1), Kolkata, Aayakar Bhawan Poorva, 110, Shanti Pally, Kolkata-700107 Appearances by: Shri Miraj D. Shah, A.R., appeared on behalf of the assesseee Smt. Ranu Biswas, Addl. CIT, D.R., appeared on behalf of the Revenue Date of concluding the hearing : May 08, 2023 Date of pronouncing the order : May 11, 2023 O R D E R Per Shri Rajpal Yadav, Vice-President (KZ):- The assessee is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi ITA No. 226/KOL/2023 A.Y. 2013-2014 Devnadi Advisory Pvt. Limited 2 dated 24 th February, 2023 passed for assessment year 2013-14. 2. The grounds of appeal taken by the assessee are argumentative in nature and not in consonance with Rule 8 of ITAT Rules. 3. In brief, its grievance is that the ld. CIT(Appeals) has erred in confirming the penalty of Rs.20,000/- imposed by the ld. Assessing Officer under section 271B of the Income Tax Act. 4. With the assistance of ld. Representatives, we have gone through the record carefully. According to the ld. Assessing Officer, he has issued notices dated 14.03.2022 and 19.02.2022 to the assessee. These notices were not complied with by the assessee. Therefore, a penalty under section 271B has been imposed. In this section, it has been provided that if an assessee failed to comply with the notice issued by the ld. Assessing Officer, the penalty of Rs.10,000/- would be imposed on single failure. In the present case, the assessee has imposed a penalty of Rs.20,000/- on account of failure of the assessee for not comply with two notices. ITA No. 226/KOL/2023 A.Y. 2013-2014 Devnadi Advisory Pvt. Limited 3 5. Appeal to the ld. CIT(Appeals) did not bring any relief to the assessee. 6. It has been brought to our notice that the first notice was not served upon the assessee and the second notice was complied with by the assessee. A plea to this effect has specifically been raised by the assessee before the ld. CIT(Appeals), but the ld. 1 st Appellate Authority has dismissed the appeal for want of prosecution without taking cognizance of this fact. Considering the above facts and circumstances, we are of the view that the assessee has not knowingly violated the notices issued by the ld. Assessing Officer. There was a reasonable cause for its non-appearance on the first notice, as it was not served upon the assessee. Similarly, the assessee has submitted reply to the second notice, therefore, it cannot be construed that the assessee failed to comply with the notices. Accordingly, we allow the appeal of the assessee and delete the penalty. 7. In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on May 11 th , 2023. Sd/- Sd/- (Manish Borad) (Rajpal Yadav) Accountant Member Vice-President(KZ) Kolkata, the 11 th day of May, 2023 ITA No. 226/KOL/2023 A.Y. 2013-2014 Devnadi Advisory Pvt. Limited 4 Copies to : (1) Devnadi Advisory Pvt. Limited, 13, Becharam Choudhary Lane, Howrah-711101 (2) Income Tax Officer, Ward-13(1), Kolkata, Aayakar Bhawan Poorva, 110, Shanti Pally, Kolkata-700107 (3) Commissioner of Income Tax (Appeals), Income Tax Department, National Faceless Appeal Centre (NFAC), Delhi (4) Commissioner of Income Tax , (5) The Departmental Representative (6) Guard File TRUE COPY By order Assistant Registrar Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.