2025 (3) TMI 598

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....the Penalty order dated 23.09.2022 passed u/s. 271(1)(b) of the Act. 2. The only grievance of the assessee in this appeal is that the CIT(A) erred in confirming the penalty of Rs. 30,000/- levied by the Assessing Officer u/s. 271(1)(b) of the Act. 3. Facts of the case, in brief, are that the assessee is an individual and has filed the return for the A.Y. 2013-14 on 24.10.2013 declaring income of Rs. 8,17,239/-. The Assessing Officer levied penalty of Rs. 30,000/- u/s. 271(1)(b) of the Act as the assessee did not respond to notices issued by him u/s. 142(1) of the Act on three occasions, ie., on 30.06.2021. 13.01.2022 and 25.02.2022 but then made partial compliance. Subsequently, the assessment was completed exparte u/s. 147 r.w.s.144 ....

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....'s erstwhile consultant. This ground is also not acceptable because the notices will always be issued to an assessee on the email id registered on the portal and if he/she chooses to provide the email of the consultant, it is a matter between the assessee and the consultant. Having given the email id of the consultant on the portal, the appellant cannot turn back and disown the email id to escape the legal consequences of her failure. This ground is accordingly rejected. 6.3 The third ground relates to the contention that notice u/s 274 r.w.s. 271(1)(b) dated 30.03.2022 does not mention as to which notice the appellant did not comply with. Further, notice u/s 274 r.w.s. 271(1)(b) dated 03.08.2022 mentions that penalty initiated....

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....or default on the part of the assessee in responding to notices issued u/s. 142(1) of the Act. In this regard, we need to look into the provisions of law concerning on the same, i.e. section 271(1)(b) and section 273B of the Act. "Section 271 FAILURE TO FURNISH RETURNS, COMPLY WITH NOTICES, CONCEALMENT OF INCOME, ETC. (1) If the Assessing Officer or the Commissioner (Appeals) in the course of any proceedings under this Act, is satisfied that any person - (a) Omitted) xxxxxxxxxxxxx xxxxxxxxxxxxx "273B. Penalty not to be imposed in certain cases. 273B. Notwithstanding anything contained in the provisions of clause (b) of sub-section (1) of section 271, section 271A, section 271AA,....

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....pear before the Assessing Officer namely (i) email-id registered on income-tax portal does not belong to the assessee (ii) filed her replies to the notices after the due dates, (iii) assessee was unaware of the notices as the entire assessment proceedings was handled by her consultant and (iv) she was also not aware of the failure to respond to the notices. We also observe that section 273B of the Act provides that if there is reasonable cause for the said failure of not complying with the notice u/s. 142(1) of the Act, then penalties can be waived off. It is also a fact that the assessee has submitted replies to the notices but belatedly. Considering these facts, we deem it proper that the penalty of Rs. 10,000/- could be imposed for the f....