SATISH ANANT BHADRI, MUMBAI V. CIT (A), DELHI

ITA 914/MUM/2023

AI Insights

The case involves two appeals by Satish Anant Bhadri against the orders of the Commissioner of Income Tax (Appeals), which upheld penalties imposed by the Assessing Officer for alleged non-compliance with notices under Section 142(1) of the Income Tax Act, 1961. The penalties were initially levied for the Assessment Years 2014-15 and 2016-17, claiming that the appellant failed to respond to a notice dated 20/11/2019. The appellant contested that he had indeed complied by responding online. The Tribunal, after reviewing the evidence presented, including compliance screenshots verified by the Departmental Representative, ruled in favor of the appellant, thereby deleting the penalties.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113509 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 25-06-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 22-03-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: FILING ONLINE REPLY DATED
• Section: 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL "G" BENCH, MUMBAI SHRI B.R. BASKARAN, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No. 915/MUM/2023 (Assessment Year: 2014-15) & ITA No. 914/MUM/2023 (Assessment Year: 2016-17) Satish Anant Bhadri, 221, Unique Industrial Estate, Off V.S. Marg, Prabhadevi [PAN: AADPB8461D] Commissioner of Income Tax (Appeals)- Delhi, Room No. 245-A, North Block, New Delhi - 110001 ............. Vs ............. Appellant Respondent Appearance For the Appellant/Assessee For the Respondent/Department : : Shri Kishore Chaudhari Shri Paresh Deshpande Date Conclusion of hearing Pronouncement of order : : 26.06.2023 28.06.2023 O R D E R Per Rahul Chaudhary, Judicial Member: 1. These are 2 appeals pertaining to Assessment Years 2014-15 and 2016-17 preferred by the Appellant against the orders passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter referred to as ‘the CIT(A)’]. Since the appeals involve identical issues the same were heard together and are being disposed by way of a common order. ITA No.915//Mum/2023 (Assessment Year 2014-15) ITA No.914/Mum/2023 (Assessment Year: 2016-17) 2 ITA No. 915/MUM/2023 (Assessment Year: 2014-15) 2. We would first take up appeal for the Assessment Year 2014-15 which has been preferred by the Appellant challenging the order, dated 09/02/2023, passed by the CIT(A) for the Assessment Year 2014-15, whereby the Ld. CIT(A) had dismissed the appeal of the Assessee against the Penalty Order, dated 16/03/2021, passed under Section 271(1)(b) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). 3. The relevant facts in brief are that the vide order dated 16/03/2022 the Assessing Officer levied penalty of INR 10,000/- under Section 271(1)(b) of the Act holding that the Appellant failed to comply with notice dated 20/11/2019 during the assessment proceedings. 4. In appeal before CIT(A), the Appellant submitted that the Appellant had complied with the notice dated 20/11/2019 issued under Section 142(1) of the Act by filing online reply on 26/11/2019. However, the CIT(A) dismissed the appeal preferred by the Appellant against levy of the aforesaid penalty holding that the Appellant failed to provide proof of compliance of notice dated 20/11/2019. The relevant extract of the decision of CIT(A) order reads as under: “6.5 Here in this case, the appellant submitted that he had complied with the impugned notice u/s 142(1) through ITBA during the scrutiny proceedings. In support of his argument, the screen shots from e-filing portal of the Income Tax showing the compliances made to prior notices issued in the month of September, 2019 were submitted. It is pertinent to note here is that the penalty proceedings are initiated against the non-compliance of notice issued u/s 142(1) dated 20.11.2019. Multiple notices u/s 142(1) were issued prior to the issuance of the impugned notice u/s. 142(1) ITA No.915//Mum/2023 (Assessment Year 2014-15) ITA No.914/Mum/2023 (Assessment Year: 2016-17) 3 dated 20.1.2019. No penalty was imposed against the non- compliance to the notices issued u/s 142(1) which are issued prior to the impugned notice u/s 142(1) dated 20.11.2019. As seen from the assessment order for the impugned assessment year, there is a clear finding of AO stating that the appellant did not respond to the Show Cause Notice (SCN) dated 20.11.2019. In this SCN, the AO called for the information specified in the notice issued dated on 10.09.2019. The appellant states that he had complied with the notice dated 10.09.2019 and also notice dated 20.11.2019. But, no evidences are brought on record by the appellant. 6.6 It is not understood why the appellant could not able to furnish the compliance screen shot dated 26.11.2019 from the e-filing portal of the Department when he was able to produce the same for earlier compliances.” (Emphasis Supplied) 5. Being aggrieved the Appellant has preferred appeal before us. 6. Learned Authorised Representative for Appellant at the outset invited out attention to page 5 of the paper-book, being compliance screen-shot showing that the Appellant had filed reply online on 29/11/2019 in response to the notice dated 20/11/2019 issued under Section 142(1) of the Act. A copy of the paper-book was provided to the Learned Departmental Representative who verified the same. Accordingly, we hold that notice dated 20/11/2019 was complied with by the Appellant by filing online reply dated 26/11/2019 and therefore, penalty of INR 10,000/- levied under Section 271(1)(b) of the Act is deleted. Ground No.1 is allowed. ITA No. 914/MUM/2023 (Assessment Year: 2016-17) 7. We would now take up appeal for the Assessment Year 2016-17 which has been preferred by the Appellant challenging the order, dated 09/02/2023, passed by the CIT(A) for the Assessment Year ITA No.915//Mum/2023 (Assessment Year 2014-15) ITA No.914/Mum/2023 (Assessment Year: 2016-17) 4 2016-17, whereby the Ld. CIT(A) had dismissed the appeal of the Assessee against the Penalty Order, dated 14/01/2022, passed under Section 271(1)(b) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). 8. Both the sides agreed for the Assessment Year 2016-17 penalty was levied by the Assessing Officer under Section 271(1)(b) of the Act for non-compliance of notice dated 20/11/2019, issued under Section 142(1) of the Act in facts and circumstances identical to Assessment Year 2014-15. The CIT(A) dismissed the appeal of the Appellant giving the same reasoning as given in Assessment Year 2014-15. Therefore, being aggrieved, the Appellant preferred appeal before us. The Appellant has placed before us compliance screen-shot showing that the Appellant had filed reply online on 26/11/2019 in response to the notice dated 20/11/2019 issued under Section 142(1) of the Act (placed at page 4 of the paper- book) which has also been verified by the Ld. Departmental Representative. Therefore, we hold that notice dated 20/11/2019 was complied with by the Appellant by filing online reply dated 26/11/2019 and therefore, penalty of INR 10,000/- levied under Section 271(1)(b) of the Act vide order, dated 14/01/2022 is deleted. Ground No.1 is allowed. 9. In result, both the appeals preferred by the Assessee are allowed. Order pronounced on 28.06.2023. Sd/- Sd/- (B.R. Baskaran) Accountant Member (Rahul Chaudhary) Judicial Member म ुंबई Mumbai; दिन ुंक Dated : 28.06.2023 Alindra, PS ITA No.915//Mum/2023 (Assessment Year 2014-15) ITA No.914/Mum/2023 (Assessment Year: 2016-17) 5 आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : 1. अपील र्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आय क्त/ The CIT 4. प्रध न आयकर आय क्त / Pr.CIT 5. दिभ गीय प्रदिदनदध, आयकर अपीलीय अदधकरण, म ुंबई / DR, ITAT, Mumbai 6. ग र्ड फ ईल / Guard file. आिेश न स र/ BY ORDER, सत्य दपि प्रदि //True Copy// उप/सह यक पुंजीक र /(Dy./Asstt. Registrar) आयकर अपीलीय अदधकरण, म ुंबई / ITAT, Mumbai