ITAT remands Income Tax Penalty matter despite Negligence of Assessee [Read Order]
The tribunal reminded taxpayers of their responsibility to adhere to statutory requirements and participate actively in judicial proceedings to avoid such penalties
![ITAT remands Income Tax Penalty matter despite Negligence of Assessee [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/01/ITAT-ITAT-remands-Income-Tax-Income-Tax-Penalty-Matter-authorised-representative-departmental-representative-DR-AR-reassessment-Negligence-of-Assessee-Income-tax-news-Taxscan.jpg "ITAT remands Income Tax Penalty matter despite Negligence of Assessee [Read Order]")
The Chennai Bench of Income Tax Appellate Tribunal ( ITAT ) remanded a case back to the Commissioner of Income Tax (Appeals) and condemned the negligence of the assessee. The assessee appealed to the tribunal against an order from the lower authorities. The assessee, Muthusamy, challenged the confirmation of a penalty amounting to ₹1.50 Lakhs under the provisions of Section 271B, imposed...
The Chennai Bench of Income Tax Appellate Tribunal ( ITAT ) remanded a case back to the Commissioner of Income Tax (Appeals) and condemned the negligence of the assessee. The assessee appealed to the tribunal against an order from the lower authorities.
The assessee, Muthusamy, challenged the confirmation of a penalty amounting to ₹1.50 Lakhs under the provisions of Section 271B, imposed on the assessee for failure t comply with assessment requirements. The CIT(A) upheld the penalty in an order dated 26-07-2024. The CIT(A) stated that the assessee failed to provide any explanations or defence as needed for the proper adjudication of the appeal, which was the reason for the penalty confirmation.
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The authorised representative ( AR ) prayed for leniency and requested another opportunity to present his case. The departmental representative ( DR ) strongly opposed this plea, stating that the non-compliance was purely negligence on the assessee’s part.
After hearing both sides, the Income Tax Appellate Tribunal ( ITAT ) acknowledged the assessee’s failure to present his case during the appellate proceedings but asserted the principles of natural justice. The tribunal observed that the assessee deserves a fair chance to substantiate the case.
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The ITAT, comprising Manu Kumar Giri, the Judicial Member and Manoj Kumar Aggarwal, the Accountant Member, set aside the penalty order and restored the matter to the CIT(A) file for fresh adjudication. The tribunal, however, directed the assessee to cooperate actively and provide all necessary submissions during the reassessment. As a result, the appeal was allowed for statistical purposes.
To Read the full text of the Order CLICK HERE
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