Shri Mahesh Damjibhai Khunt, Rajkot V. The Income Tax Officer, Ward-1 (2) (2), Rajkot

ITA 310/RJT/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 6384 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-09-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 30-12-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 147; 131; 144; 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT (Conducted Through Virtual Court) Before: Ms. Annapurna Gupta, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member Shri Mahesh Damjibhai Khunt Shri Somnath Co-op. Society, 150 ft Ring Road, Rajkot PAN No: ASYPK7314F (Appellant) Vs The I.T.O. Ward- 1(2)(2), Rajkot (Respondent) Appellant by : Written Submission Respondent by : Shri B.D. Gupta, Sr.D.R. Date of hearing : 12-09-2022 Date of pronouncement : 16-09-2022 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- The present appeal has been filed by the Assessee against the order dated 06.12.2019 passed by the Commissioner of Income Tax (Appeals)-1, Rajkot as against the confirmation of penalty levied u/s. 271(1)(b) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year (A.Y) 2010-11. ITA No. 310/Rjt/2019 Assessment Year 2010-11 I.T.A No. 310/Rjt/2019 A.Y. 2010-11 Page No Shri Mahesh Damjibhai Khunt vs. ITO 2 2. The brief facts of the case is that the assessee is an individual. For the Assessment Year 2010-11, the assessee has not filed Return of Income. The assessment was completed u/s. 147 of the Act, the assessee has not responded. Hence a notice u/s. 142(1) issued on 21.08.2017 served by RPAD calling upon the assessee to file the Return of Income within seven days of receipt of the said notice. However the assessee neither response to the notice nor filed the Return of Income. Therefore based on the materials available on record, assessment was finalized on best judgment assessment u/s. 144 r.w. 147 of the Act on 15.12.2017. 2.1. In view of the non-compliance to the notice issued to the assessee, penalty proceedings u/s. 271(1)(b) of the Act was issued and a show cause notice dated 11.06.2018 served on the assessee calling for its explanation. For this notice also, the assessee not responsed and not offered explanation. Therefore a penalty of Rs. 10,000/- is levied or non-compliance to the notice issued u/s. 142(1) of the Act. 3. Aggrieved against the same, assessee filed an appeal before the Ld. CIT(A)-1. The Ld. CIT(A) confirmed the penalty of Rs. 10,000/- on the ground that the assessee did not respond to the statutory notices both at the time of completion of assessment on 15.12.2017 and later on 11.06.2018. Therefore the assessing officer has imposed penalty for non-compliance of notice issued u/s. 142(1). The assessee’s contention of non-compliance notice within seven days’ time is untenable. Therefore the plea of the assessee was I.T.A No. 310/Rjt/2019 A.Y. 2010-11 Page No Shri Mahesh Damjibhai Khunt vs. ITO 3 rejected and confirmed the levy of penalty under section 271(1)(b) of the Act. 4. Aggrieved against the same, the assessee is in appeal before us raising as many as 11 grounds which are repetition in nature and no explanation offered for non-compliance of the notice u/s. 142(1). None appeared on behalf of the assessee and a written submission filed before us wherein it is stated that no sufficient time was given by the Ld. A.O. whereas only seven days’ time given to file the Return of Income. The case relating to nine years old and how the assessee could furnish the information within seven days. Therefore the penalty levied is to be deleted. 5. Per contra, the Ld. D.R. appearing for the Revenue submitted that the assessee has not filed the original Return of Income. After issuance of 148 notice, when the assessee has not filed the Return, the Ld. A.O. issued notice u/s. 142(1) on 29.05.2017 and 03.08.2017 & 21.08.2017 which were not responded by the assessee. Subsequently, the Ld. A.O. issued summons u/s. 131 of the Act which was returned with the remark “refused” to accept the summons. It was under these circumstances, the Ld. A.O. initiated penalty u/s. 271(1)(b) of the Act for non-compliance. However the Ld. A.O. has levied penalty of only Rs. 10,000/- which is confirmed by the Ld. CIT(A) which does not require any interference. 6. We have given our thoughtful consideration and perused the materials available on record including the written submission filed I.T.A No. 310/Rjt/2019 A.Y. 2010-11 Page No Shri Mahesh Damjibhai Khunt vs. ITO 4 by the assessee. When the assessee felt that seven days’ time is not sufficient enough to response to the notice, he could have very well informed the Assessing Officer by putting in writing asking for extended time to response to the notices issued by the Ld. A.O. However the assessee has not done so but also refused the summons issued u/s. 131 of the Act. Therefore the levy of penalty u/s. 271(1)(b) clearly attracted to this case. The assessee has not made out a case why, he has not responded to the hearing notices. Thus the grounds raised by the assessee are devoid of merits. Therefore the finding of the Lower Authorities does not require any interference. 7. In the result, appeal filed by the Assessee is hereby dismissed. Order pronounced in the open court on 16 -09-2022 Sd/- Sd/- (ANNAPURNA GUPTA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad : Dated 16/09/2022 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, राजकोट