RAJKUMAR BRINDHA, MADURAI V. ITO, NON CORPORATE WARD 1(1), MADURAI

ITA 371/CHNY/2023

AI Insights

The case revolves around a penalty imposed on the assessee, Rajkumar Brindha, under section 271(1)(b) of the Income Tax Act for non-compliance with statutory notices during the assessment year 2014-15. The Income Tax Officer (ITO) had initially imposed a penalty of Rs. 30,000 for non-compliance with notices issued under sections 142(1) and 148. However, the Commissioner of Income Tax (Appeals) reduced this penalty to Rs. 10,000, citing only one instance of non-compliance. The assessee contested this penalty, arguing that the notice was unclear and the assessment itself was under challenge. The Tribunal, after considering the facts, including the relevance of the details requested in the notice, decided to delete the penalty entirely.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134254 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 05-07-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 21-03-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 142(1)

Judgement Text

आयकर अपीलीय अिधकरण “बी” ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय ी महावीर िसंह, उपा ! एवं माननीय ी मनोज कुमार अ&वाल ,लेखा सद) के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.371/Chny/2023 (िनधा*रण वष* / As sessment Year: 2014-15) Rajkumar Brindha 26/1, Dock Nagar, SBOA Colony 4 th Street, Madurai-625 010. बनाम / V s . ITO, Non-Corporate Ward-1(1) Madurai. थायीलेखासं./जीआइआरसं./PAN/GIR No. A ZVP B - 8620-M (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Shri P.M. Kathir (Advocate)-Ld.AR थ कीओरसे/Respondent by : Shri D. Hema Bhupal (JCIT)- Ld. DR सुनवाईकीतारीख/Date of Hearing : 06-07-2023 घोषणाकीतारीख /Date of Pronouncement : 06-07-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. The sole grievance of the assessee in the captioned appeal is confirmation of penalty u/s 271(1)(b) for Rs.10,000/-. From the case records, it emerges that an assessment was framed against the assessee u/s 147 r.w.s. 144 on 28.03.2022. During the course of assessment proceedings, various notices were issued u/s 148, 142(1) and 144 which have been tabulated on page no.2 of the assessment order. However, the assessee failed to respond to the same. Accordingly, the assessment was framed on best judgment basis and impugned penalty was initiated against the assessee. 2 ITA No.371/Chny/2023 2. The assessee did not comply with notices issued u/s 142(1) on 13.12.2021, 23.02.2022 and 07.03.2022 against which Ld. AO proposed penalty. The assessee submitted that the notice issued on 07.03.2022 was an unclear notice. The assessee also assailed impugned penalty on the ground that the assessment was under challenge. However, Ld. AO held that non-compliance of statutory notices on three occasions would invite penalty and accordingly, he imposed penalty of Rs.30000/-. 3. The Ld. CIT(A) concurred with assessee’s submissions that in the show-cause notice dated 28.03.2022, Ld. AO had mentioned only one default i.e., notice issued u/s 142(1) dated 07.03.2022. Accordingly, the impugned penalty was reduced to Rs.10000/- against which the assessee is in further appeal before us. 4. It could be seen that the assessee was required to file the reply in newly introduced electronic mode. It is also seen that in notice dated 07.03.2022, certain details have been called for by Ld. AO which are not relevant for the assessee. The assessee could not have otherwise reply to the said notice. Therefore, considering the facts of the case, we delete the impugned penalty. 5. The appeal stand allowed. Order pronounced on 06 th July, 2023. Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा34 / VICE PRESIDENT लेखा सद6 / ACCOUNTANT MEMBER चे8ई Chennai; िदनांक Dated : 06-07-2023 DS आदेश की Aितिलिप अ &ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आय ु त/CIT 4. वभागीय त न ध/DR 5. गाड फाईल/GF