VARAHALA SOBHA RANI,HYDERABAD V. ITO., WARD-1, SANGAREDDY

ITA 789/HYD/2025

AI Insights

Ms. Varahala Sobha Rani, the appellant, did not file a return of income for the assessment year 2015-16, leading to a reassessment under section 147 of the Income Tax Act, 1961. The assessee failed to respond to statutory notices during the reassessment and subsequent penalty proceedings, resulting in a penalty of Rs.20,000 imposed by the Income Tax Officer (ITO). The penalty was contested before the Commissioner of Income Tax (Appeals) but was upheld. The case was then brought before the Income Tax Appellate Tribunal, which also upheld the penalty due to the assessee's persistent non-compliance.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 777211 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2025
• Order Result: Dismissed
• Bench Allotted: DB-B
• Assessment Year: 2015-2016
• Appeal Filed On: 06-05-2025
• Laws Referred To: Income Tax Act, 1961
• Court: TRIBUNAL
• Department Lawyers: SACHIN KUMAR
• Keywords: Reassessment proceedings
• Section: 147; 142(1)

Judgement Text

" आयकर अपीलीय अधिकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘B’ Bench, Hyderabad श्री विजय पाल राि, उपाध् यक्ष एिं श्री मिुसूदन सािडिया, लेखा सदस् य क े समक्ष । BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER आ.अपी.सं /ITA No.789/Hyd/2025 (निर्धारण वर्ा/Assessment Year:2015-16) Ms. Varahala Sobha Rani, Medak, Telangana. PAN:ADYPV1792M Vs. Income Tax Officer, Ward-1, Sangareddy, Telangna. (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: None. रधजस् व द्वधरध/Revenue by: Dr. Sachin Kumar, SR-DR सुिवधई की तधरीख/Date of hearing: 11/09/2025 घोर्णध की तधरीख/Pronouncement: 19/09/2025 आदेश/ORDER PER MADHUSUDAN SAWDIA, A.M. : This appeal is filed by Ms. Varahala Sobha Rani (“the assessee”), feeling aggrieved by the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), dated 07.04.2025 for the A.Y. 2015-16. 2. The assessee has raised the following grounds of appeal : Printed from counselvise.com ITA No.789/Hyd/2025 2 3. The brief facts of the case are that, the assessee did not file any return of income for the year under consideration. Consequently, the case was reopened under section 147 of the Income Tax Act, 1961 (“the Act”). During the reassessment proceedings, the assessee did not respond to the statutory notices issued by the Learned Assessing Officer (“Ld. AO”) under section 142(1) dated 12.07.2023 and 08.11.2023. On account of such non-compliance, the Ld. AO initiated penalty proceedings under section 271(1)(b) of the Act. Even during the penalty proceedings, the assessee failed to respond to the show cause notices. Accordingly, the Ld. AO levied penalty of Rs.20,000/- Printed from counselvise.com ITA No.789/Hyd/2025 3 (being Rs.10,000/- for each of the two defaults) vide penalty order dated 22.07.2024 for A.Y. 2015–16. 4. Aggrieved with the order of Ld. AO, the assessee filed appeal before the Ld. CIT(A). The Ld. CIT(A), after considering the submission of the assessee, upheld the penalty and dismissed the appeal. 5. The assessee has now preferred this appeal before the Tribunal. The case of the assessee was fixed for hearing on 23.07.2025, but neither the assessee nor its authorised representative appeared on that day. The case was adjourned to 10.09.2025. Again, there was no appearance. Even on today’s date of hearing, there was no representation from the side of the assessee. Therefore, we proceed to adjudicate the appeal after hearing the Learned Departmental Representative (“Ld. DR”). 6. The Ld. DR submitted that the conduct of the assessee throughout the proceedings shows persistent non-compliance. The assessee neither filed return of income voluntarily, nor responded to notices during reassessment, nor complied with penalty notices, and Printed from counselvise.com ITA No.789/Hyd/2025 4 even at the appellate stage before the Tribunal, has failed to appear. He submitted that the levy of penalty of Rs.20,000/- under section 271(1)(b) of the Act is squarely justified, as the statutory defaults are admitted and unexplained. He therefore prayed that the orders of the lower authorities be upheld and the appeal be dismissed. 7. We have considered the submissions of the Ld. DR and perused the material available on record. Despite several opportunities, neither the assessee nor any authorised representative has appeared before us to explain the reasons for non-compliance. The assessee also did not file any written submissions. The record clearly shows that the assessee failed to respond to statutory notices issued under section 142(1) dated 12.07.2023 and 08.11.2023, which are mandatory in nature. Even during penalty proceedings, the assessee did not file any reply. Such consistent conduct of non-compliance has continued before the Tribunal as well. Printed from counselvise.com ITA No.789/Hyd/2025 5 8. Penalty under section 271(1)(b) of the Act is attracted where there is failure to comply with notices issued under section 142(1) of the Act. The Ld. AO has levied penalty of Rs.20,000/- (being Rs.10,000/- per default) which is in accordance with law. The Ld. CIT(A) has confirmed the levy after due consideration of facts. In the absence of any explanation or evidence from the assessee and given the repeated defaults, we find no infirmity in the orders of the lower authorities. The appeal, therefore, deserves to be dismissed. Accordingly, the appeal filed by the assessee is dismissed. The penalty of Rs.20,000/- levied under section 271(1)(b) of the Act is hereby upheld. 9. In the result, the appeal filed by the assessee is dismissed. Order pronounced in the open Court on 19th Sept., 2025. Sd/- Sd/- (VIJAY PAL RAO) (MADHUSUDAN SAWDIA) VICE PRESIDENT ACCOUNTANT MEMBER Hyderabad. Dated: 19.09.2025. * Reddy gp Printed from counselvise.com ITA No.789/Hyd/2025 6 Copy of the Order forwarded to : 1. Mrs. Varahala Sobha Rani, 25-29-18,/53/2, RC Puram, Ameenput- 502032 2. The ITO, Ward 1, Sangareddy, Telanagana. 3. Pr.CIT, Hyderabad. 4. DR, ITAT, Hyderabad. 5. Guard file. BY ORDER, Printed from counselvise.com "