2025 (10) TMI 135 - AT - Income Tax

Penalty under section 271(1)(b) upheld for failure to comply with notice under section 142(1); no sufficient cause found

ITAT PUNE - AT upheld penalty under section 271(1)(b) for non-compliance with notice u/s 142(1). The assessee failed to produce documentary evidence that ... Penalty levied u/s 271(1)(b) - non-compliance to notice u/s 142(1) - Assessee’s only pleading is that the Assessee’s erstwhile Tax Consultant had provided his Email Address and Mobile Number on the Income Tax Portal instead of providing Assessee’s Email Id. HELD THAT:- In this case, Assessee has not brought on record any documentary evidence to prove that the Tax Consultant had provided his Email Id without the knowledge of the assessee. The Income Tax Account of the Individual Assessee cannot be accessed by any other person without getting the relevant details from the person. Assessee herself had provided her login details to her Tax Consultant. Having done so, now she cannot plead that she was unaware. She has also not taken any steps against the said erring Tax Consultant. There was no sufficient cause for non-compliance to notice u/s 142(1). Accordingly, we uphold the penalty order passed by the AO. Appeal of the assessee is dismissed. Appellate Tribunal (ITAT), Pune affirmed imposition of penalty under section 271(1)(b) for non-compliance with notices issued under section 142(1) (dated 24.01.2022, 03.02.2022, 10.02.2022) in respect of A.Y. 2013-14, emanating from CIT(A)[NFAC] order dated 17.05.2024. Assessee's plea was that an erstwhile tax consultant had entered his email and mobile on the Income Tax portal, causing non-receipt of notices; no documentary evidence was produced to show the consultant acted without assessee's knowledge. Tribunal held the Income Tax account 'cannot be accessed by any other person without getting the relevant details from the person,' and concluded that by providing login details to the consultant the assessee cannot subsequently plead unawareness. Assessee also did not initiate any action against the tax consultant. On these facts, the Tribunal found 'there was no sufficient cause for non-compliance to notice under section 142(1)' and therefore upheld the penalty; grounds of appeal dismissed.