2025 (6) TMI 396 - AT - Income Tax

Legal Win: Tax Penalty Overturned as Tribunal Recognizes Genuine Family Health Emergency Under Income Tax Act Section 272A(1)(d)

ITAT Cochin allowed an appeal against a penalty under Income Tax Act sec. 272A(1)(d). The Tribunal found reasonable cause for non-appearance at a sec. ... Levy of penalty u/s. 272A(1)(d) - assessee failed to appear in response to the notice u/s. 142(1) - HELD THAT:- We are of the view that there was reasonable cause for non-appearance in respect of sec.142(1), and hence, we hereby delete the amount levied by the AO u/s. 272A(1)(d) of the Act. Appeal filed by the assessee is allowed. The Appellate Tribunal (ITAT Cochin) addressed an appeal concerning the levy of penalty under section 272A(1)(d) of the Income Tax Act for Rs. 40,000, imposed due to the assessee's failure to appear in response to a notice under section 142(1) dated 22nd October 2024 for the assessment year 2018-2019. The Assessing Officer (AO) imposed the penalty, which was affirmed by the Commissioner of Income-tax (Appeals) [CIT(A)]. The assessee contended that non-appearance was due to the ill health of his mother, constituting a reasonable cause. The Tribunal, after considering submissions, held that 'there was reasonable cause for non-appearance in respect of sec.142(1),' and accordingly deleted the penalty. The appeal was allowed.