TaxTMI 
TaxTMI 
2024 (12) TMI 706
X X X X Extracts X X X X
X X X X Extracts X X X X
....mpliance of notice u/s 142(1) dated 30.09.2020, which appeal in turn has arisen from the penalty order dated 21.12.2021 passed by Assessing Officer (NFAC, Delhi) u/s. 271(1)(b) of the Income-tax Act, 1961, imposing penalty of Rs. 10,000/-(DIN ITBA/PNL/F/271(1)(b)/2021-22/1038000363(1)). 2.Grounds of appeal raised by the assessee in the memo of appeal filed with Income Tax Appellate Tribunal, Agra Bench, Agra reads as under : "1 That under the facts and circumstances of the case and in law, the Learned CIT (appeals) Income Tax Department has erred in confirming the penalty order passed by the Assessing Officer under section 271(1)(b) dated 21/12/2021 an amount of Rs. 10,000/- without considering the complete reply filed by the as....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Tax Act 1961 is illegal and against the principle of natural justice. Please be deleted the initiation of penalty proceeding in the body of the order thus the order passed by the assessing officer and confirmed by the CIT(Appeals) is unwarranted in law and also against the principle of natural justice, Please be quashed. 5 That under the facts and circumstances of the case and in law, the learned assessing officer has erred in not taken into consideration prevented by reasonable cause for non-compliances of notice due to Corona virus pandemic before imposing the penalty under section 271(1)(b) for no compliance of notice under section 142(1) of the Income Tax Act 1961 which was confirmed by the CIT (Appeals) which is against princ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.....09.2020 to the assessee to furnish certain information in connection with re-assessment proceedings, but there was no compliance on behalf of the assessee. Hence, penalty proceedings u/s. 271(1)(b) of the Act was initiated by the Assessing Officer vide notice dated 25.09.2021, but no reply was submitted by the assessee. Several opportunities were provided to the assessee during the course of penalty proceedings, but there was no compliance by the assessee, which led to levy of penalty of Rs. 10,000/- by the Assessing Officer u/s. 271(1)(b) of the Act for non-compliance of notice issued by the Assessing Officer u/s. 142(1) dated 30.09.2020. 4. Aggrieved, the assessee filed first appeal with the ld. CIT(Appeals) and the assessee submitted....
X X X X Extracts X X X X
X X X X Extracts X X X X
....roceedings. The assessee has also relied on the order of Hon'ble Supreme Court dated 10.01.2022 in MA No. 21 of 2022 in MA no. 665 of 2021 in Suo Motu writ petition (C) No. 3 of 2020 in Re: Cognizance for Extension of Limitation. The assessee has also relied upon Press Release dated 17.09.2021 issued by CBDT, Ministry of Finance, GOI, for extending certain timeliness to ease compliance. 5.2 Ld. Sr. DR appeared on behalf of the department and submitted that the penalty u/s. 271(1)(b) was levied for non-compliance of statutory notice u/s. 142(1) dated 30.09.2020, during the course of reassessment proceedings. 6. I have heard the ld. DR and perused material on record including written submissions filed by the assessee. I have observed th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....being the period covered by outbreak of Covid-19 Pandemic when the whole humanity across the globe including India was facing the greatest human crisis and sufferings, leading to deaths, disease and severe ailments. The whole world was also grappling with lock-downs announced by their respective Governments including the Govt. of India/State Governments. Even Hon'ble Supreme Court extended the date of limitations for filing petitions/appeals/applications/suits/all other quasi judicial proceedings under the general law of limitation or under special laws(both Central and/or the State) due to outbreak of the Covid-19 pandemic. Thus, the Apex Court directed extension of the period of limitation in all proceedings before Courts/Tribunal by excl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ted 30.09.2020 issued by the AO u/s 142(1) during reassessment proceedings. But, it is very unfortunate that the assessee having raised the reasonable cause before ld. CIT(A) for non-compliance of notice dated 30.09.2020 issued by the AO u/s 142(1) during reassessment proceedings, on account of Covid-19 pandemic, the ld. CIT(Appeals) tried to distinguished between the extension of limitation by Hon'ble Supreme Court and the consequences of non-compliance/ default in complying with notice for hearing issued u/s 142(1) dated 30.09.2020, leading to confirmation of penalty as was levied by the AO u/s. 271(1)(b) of the Act. Under these extra-ordinary circumstances, when the whole humanity across globe including India were suffering from Covid-19....