Case Number: ITA 990/DEL/2021
Appellant: Balraj Kishor, Meerut
Respondent: ITO, Ward-1(2), Meerut
Assessment Year: 2012-13
Result: 2012-13
Case Filed on: 2021-08-17
Order Type: Final Tribunal Order
Date of Order: 2022-09-28
Pronounced on: 2022-09-28
This case involves an appeal filed by Balraj Kishor (hereinafter referred to as ‘the Appellant’) against the order dated 27.07.2021 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi. The appeal centers on the penalty of Rs. 10,000/- levied by the Assessing Officer (AO) under section 271(1)(b) of the Income Tax Act, 1961, for non-compliance with a statutory notice issued under section 142(1) of the Act during the assessment year 2012-13.
During the assessment proceedings for the assessment year 2012-13, the AO issued a notice under section 142(1) of the Income Tax Act, requiring the Appellant to furnish relevant documents and details. However, the Appellant failed to comply with this notice. Consequently, the AO initiated penalty proceedings under section 271(1)(b) for non-compliance and ultimately imposed a penalty of Rs. 10,000/- on 25.12.2019.
The Appellant challenged this penalty order before the Commissioner of Income Tax (Appeals), NFAC, Delhi, but the appeal was dismissed. Aggrieved by this decision, the Appellant filed the present appeal with the Income Tax Appellate Tribunal (ITAT), Delhi Bench.
During the ITAT hearing, the Appellant did not appear in person but submitted written arguments. The Appellant contended that he did not receive the notice or the assessment order and claimed that his non-compliance was due to genuine reasons. He explained that he was occupied with his business activities, which involved going to the market early in the morning and returning late in the evening. Additionally, he mentioned that other family members were illiterate and could not handle the tax matters.
The Appellant further argued that the penalty was unjustified given the circumstances and requested the Tribunal to set aside the penalty order. On the other hand, the Departmental Representative (DR) argued that the Appellant had ample opportunities to comply with the notice but failed to do so. The DR maintained that the penalty was rightly levied for non-compliance.
The Tribunal, comprising Anil Chaturvedi, Accountant Member, and Narender Kumar Choudhry, Judicial Member, observed that the Appellant’s explanations for non-compliance were not convincing. The Tribunal noted that the assessment order was passed under section 144 of the Act, indicating that the assessment was completed based on the best judgment of the AO due to the Appellant’s non-compliance.
Furthermore, the Tribunal highlighted that the Appellant did not participate in the penalty proceedings despite being given multiple opportunities. The Tribunal emphasized that it is the duty of the litigant to approach the court with clean hands and actively participate in the proceedings, which the Appellant failed to do.
The Tribunal also considered the fact that the Appellant did not subsequently join the assessment proceedings to rectify the non-compliance. Given these circumstances, the Tribunal concluded that the penalty imposed under section 271(1)(b) was justified and there was no reason to interfere with the order of the Commissioner of Income Tax (Appeals).
Based on the above observations and analysis, the Tribunal decided to uphold the penalty of Rs. 10,000/- imposed by the AO for non-compliance with the statutory notice under section 142(1) of the Income Tax Act.
Order: The appeal of the Appellant is dismissed.
Order Pronounced in the Open Court on 28th September, 2022.
-Sd/- (Anil Chaturvedi, Accountant Member)
-Sd/- (Narender Kumar Choudhry, Judicial Member)
Date: 28.09.2022
Copy forwarded to:
Assistant Registrar
ITAT, New Delhi
Balraj Kishor vs. ITO: Penalty for Non-Compliance of Statutory Notice for Assessment Year 2012-13
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