MAHESH RATILAL GANATRA,UNITED KINDDOM V. THE DCIT, CIRCLE INTERNATIONAL TAXATION-1(3)(1), DELHI, DELHI

ITA 2125/DEL/2025

AI Insights

The case involves Mahesh Ratilal Ganatra, a non-resident Indian residing in the UK, who appealed against a penalty of Rs. 10,000 levied by the Assessing Officer under section 272A(1)(d) of the Income Tax Act for non-compliance with a notice under section 142(1). The notice was issued on 06.01.2023, but the assessee, having no income source in India and not being served any notice, was unaware of the proceedings. The Commissioner of Income Tax (Appeals) upheld the penalty, leading to the appeal in the Tribunal. The Tribunal found that the notice was not served as required by law, leading to the decision to delete the penalty.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 786363 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2018-2019
• Appeal Filed On: 31-03-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIKRAM SINGH SHARMA
• Keywords: Set aside; Non compliance
• Section: 144

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “डी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं ŵी नवीन चंū, लेखाकार सद˟ क े समƗ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER आअसं.2125/िदʟी/2025(िन.व. 2018-19) ITA No. 2125/Del/2025(A.Y 2018-19) Mahesh Ratilal Ganatra, Warwick Avenue, Edgware, UK PAN: BYTPG-3848-Q ...... अपीलाथᱮ/Appellant बनाम Vs. Deputy Commissioner of Income Tax, International Taxation, 1(3)(1) Delhi ..... ᮧितवादी/Respondent अपीलाथᱮ Ȫारा/ Appellant by : None ŮितवादीȪारा/Respondent by : Shri Vikram Singh Sharma, SR.DR सुनवाई कᳱ ितिथ/ Date of hearing : 16/10/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : : 28/10/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), Delhi-42 [in short ‘the CIT(A)’] dated 03.01.2025, for Assessment Year 2018-19 confirming levy of penalty u/s.272A(1)(d) of the Income Tax Act,1961(hereinafter referred to as ‘the Act’). 2. A penalty of Rs.10,000/- has been levied by the Assessing Officer (AO) u/s. 272A(1)(d) of the Act for non compliance of notice u/s.142(1) of the Act issued on 06.01.2023. The assessee filed appeal against the penalty order dated 22.11.2023 before the CIT(A) citing reasons for not responding to the notice u/s.142(1) of the Printed from counselvise.com 2 ITA No 2125/Del/2025 (AY 2018-19) Act. The assessee is a Non-Resident and is residing in United Kingdom. Since, the assessee has no source of income in India therefore no return of income was filed by the assessee for the impugned assessment year u/s.139 of the Act. The assessee was not aware of any assessment proceedings against the asseesee for AY 2018-19 being undertaken as no notice was ever served on the assessee. Even, the assessment was framed u/s.147 r.w.s 144 r.w.s. 144C(iii) of the Act vide assessment order dated 30.05.2023. The CIT(A) rejected submissions of the assessee and confirmed levy of penalty u/s. 272A(1)(d) of the Act. 3. Shri Vikram Singh Sharma, representing the department vehemently defended the impugned order and prayed for upholding penalty levied by the AO u/s. 272A(1)(d) of the Act. The ld. DR submitted that the assessee is recalcitrant, the assessee not only responded to notice u/s.142(1) of the Act but has failed to participate in the assessment proceedings. 4. We have heard the submissions made by ld. DR and have examined the orders of authorities below. It is an un-denying fact that the assessee is a resident of United Kingdom and is a Non-Resident Indian. The assessment has been framed in name of the assesee in the status of Non-Resident. The address mentioned in the order is of United Kingdom. A penalty u/s. 272A(1)(d) of the Act has been levied by the Assessing Officer for non compliance of the notice u/s.142(1) of the Act dated 06.01.2023. It is not emanating from records as to whether the said notice was ever served on the assessee? The section mandates service of notice and not issuance of notice alone. In the absence of service of notice, it is not possible for the assessee to know about any proceedings being initiated against him. The fact that the assessment has been framed in an ex-parte proceedings, further strengthens the claim of assessee that he was unaware of any Income Tax Printed from counselvise.com 3 ITA No 2125/Del/2025 (AY 2018-19) proceedings against him for the impugned assessment year. Considering entire facts of the case and the reason furnished by the assessee for non-compliance of the notice u/s.142(1)of the Act, the penalty levied u/s. 272A(1)(d) of the Act is directed to be deleted. 5. In the result, impugned order is set aside and appeal of the assessee is allowed. Order pronounced in the open court on Tuesday the 28th day of October, 2025. Sd/- Sd/- (NAVEEN CHANDRA) (VIKAS AWASTHY) लेखाकार सद᭭य/ACCOUNTANT MEMBER ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 28.10.2025 NV/- ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT/CIT(A) 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar) ITAT, DELHI Printed from counselvise.com "