The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) deleted the penalty imposed under section 272A(1)(d) of the Income Tax Act,1961 without giving proper opportunity to the assessee to prove the reason by the assessing officer.
Dhanasingh Nagamuthu, the appellant assessee appealed against the order passed by the Commissioner of Income Tax (Appeals) for confirming the levy of penalty under section 272A(1)(d) of the Income Tax Act by the assessing officer.
During the hearing of the appeal, none appeared for the assessee and Oriyadarshini Baseganni appeared on behalf of the revenue department.
Further, the assessee submitted that a reply was submitted before the lower authorities by quoting that he has not received any communication to date under section 272(A)(1)(d) of the Income Tax Act.
It was also submitted by the assessee that there was no proper opportunity as required under section 274(1) of the Income Tax Act given to prove the reason and the assessing officer had stated in the penalty order that the appeal was not filed against the issue of notice under section 272(A)(1)(d) of the Income Tax Act.
The counsel for the revenue relied on the decisions of the lower authorities and contended that the assessee had failed to establish reasons for non-compliance with the notice issued under section 143(1) of the Income Tax Act during the assessment proceedings.
The bench observed that the assessing officer passed the assessment order without disposing of the assessee’s letter either rejecting the said application or granting time.
The two-member panel comprising Chandra Poojari (Accountant) and Beena Pillai, Judicial held that the assessee was not guilty of apparent conduct to comply with the notice under section 142(1) of the Income Tax Act and thus it was not a fit case for levy of penalty under section 272A(1)(d) of the Income Tax Act and are liable to be deleted while allowing the appeal filed by the assessee.
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