Income Tax Return not filed after receiving Re-Assessment Notice: ITAT upholds Penalty [Read Order]

The Income Tax Appellate Tribunal (ITAT), Ahmedabad bench has upheld the penalty order by observing that the income tax return was not filed after receiving the re-assessment notice under section 148 of the Income Tax Act, 1961.

The assessee, JagrutibenDalpatbhai Bhavsar is an individual and had made deposit of Rs.12 lakhs in Bank of India. As the assessee has not filed return of income relating to the Assessment Year 2011-12, the assessment was reopened by issuance of notice issued under section 148 of the Act. The assessee had not filed return of income in response to 148-notice. Hence, the Assessing Officer determined total income at Rs.12,39,100/- and also initiated penalty proceedings under section 271F of the Act. As the assessee has never filed a return of income, the AO levied penalty of Rs.5,000/- by invoking section 271F of the Act. Aggrieved against this penalty order, the assessee filed appeal before the NFAC.

Shri Pramod M. Jagtap, Vice President and T.R. Senthil Kumar, Judicial Memberhave observed that though the ld.CIT(A) has given two opportunities to the assessee, as non-appeared on behalf of the assessee, the appeal of the assessee was dismissed.

“Further, perusal of records clearly shows that no explanation or reason adduced before any of the lower authorities. In the absence of any records and evidences, we are not in a position to adjudicate this case. Further, the penalty orders clearly states that the assessee did not file the return of income in response to the notice issued under section 148 of the Act till the date of finalization of the order. Therefore, we reject the ground of appeal raised by the assessee,” the Tribunal said.

To Read the full text of the Order CLICK HERE

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