2026 (4) TMI 99 - AT - Income Tax

Penalty for non-compliance with statutory notices deleted where assessment was remanded for fresh consideration and justice required interference.

Penalty for alleged non-compliance with statutory notices under section 272A(1)(d) of the Income-tax Act, 1961 was deleted because the Tribunal found the ... Penalty u/s. 272A(1)(d) - non-compliance with statutory notice - HELD THAT: - Quantum assessment itself had already been restored to the file of the Assessing Officer for de novo consideration. Though the restoration of the quantum matter was observed not to have a direct bearing on the issue of non-appearance, the Tribunal found that the assessee had been diligently following up with the tax authorities in various matters. On that consideration, and in the interests of justice, the Tribunal held that the penalty should be deleted. [Paras 7] Final Conclusion: The Tribunal allowed the appeal and directed deletion of the penalty imposed under section 272A(1)(d). The relief was granted in view of the restoration of the quantum proceedings for fresh adjudication and the overall conduct of the assessee. Issues: Whether the penalty imposed for non-compliance with statutory notices under section 272A(1)(d) of the Income-tax Act, 1961 was liable to be sustained.Analysis: The penalty had been imposed for alleged failure to comply with notices issued during assessment proceedings. The Tribunal noted that the quantum assessment had already been restored to the Assessing Officer for de novo consideration. It also took into account the assessee's overall conduct and found that the circumstances justified interference with the penalty order in the interests of justice.Conclusion: The penalty was deleted and the issue was decided in favour of the assessee.