Penalty u/s 271(1)(b) on Non-Appearance will not sustain on Completion of Scrutiny Assessment: ITAT [Read Order]

Penalty u/s 271(1)(b) for non-appearance was deleted by the Mumbai bench of Income Tax Appellate Tribunal (ITAT) on completion of scrutiny assessment by the Assessing Officer after condoned the absence of the assessee.

Shri Himanshu Gandhi appeared on behalf of the assessee and Shri B.K. Bagchi appeared on behalf of the revenue.

The assessee had filed its return of income declaring a total income of Rs.2,84,294/-. The case was reopened u/s.147 of the Act and consequently, reassessment was completed u/s.143(3) of the Act on 29/12/2017. In the course of re-assessment proceedings though initially

The assessee failed to appear in person or through her authorised representative before the AO initially but finally appeared and furnished a statement u/s.131 of the Act. The assessee stated that she got married during reassessment proceedings and was under the confusion as to who was handling her income tax matters which created an absence in the initial period. The assessment was completed u/s.143(3) of the Act.

Shri M Balaganesh, AM & Shri Rahul Chaudhary, JM held that no penalty u/s.271(1)(b) of the Act could be levied when an assessment has been completed u/s.143(3) of the Act, wherein the AO condoned the absence of the assessee and the assessments were ultimately completed u/s.143(3) of the Act. The Tribunal deleted the penalty u/s.271(1)(b) of the Income Tax Act and allowed the appeal filed by the assessee.

To Read the full text of the Order CLICK HERE

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