2025 (6) TMI 1938

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.... Income Tax Act, 1961 as enumerated in the said order which is extracted as follows for the sake of completeness: "During the course of the assessment proceedings u/s 143(3) of the I. Tax Act, 1961 for A.Y. 2016-17, a notice u/s. 142(1) of the Act was issued to the assessee on 25.06.2018 via ITBA portal. Vide the notice; the assessee was required to furnish some document on 29.06.2018. On 29.06.2018, the assessee requested to adjourn the date for next 10 days which was duly considered and the next date of hearing was fixed on 09.07.2018. However, no reply was furnished by the assessee on or before the stipulated date. Further, the assessee did not furnish any reason/explanation in respect of the show-cause notice dated 13.07.2018 f....

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....mpliance of the notice u/s. 142(1) of the Act dated 25.06.2018 on satisfying that the assessee has failed to comply with the notice under sub-section (1) of section 142 of the Income-tax Act, 1961 dated 25.06.2018, penalty of Rs. 10,000/- was levied vide order u/s 271(1)(b) I.T. Act on 18.07.2018. 5.2 During the appellate proceedings, the appellant has ground of appeal stating that the AO has erred in levying of penalty, whereas the appellant has not submitted any valid reason preventing him from responding to the statutory notices twice. The appellant, in the penalty proceedings has only stated that the assessment order during the proceedings of which the penalty was levied is under appeal and hence, the penalty order may be kept ....

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....O needs no intervention from the appellate authorities and the same is upheld. The grounds of appeal raised by the appellant on these issues lack merits and requires to be dismissed. 6. In the result, the appeal of the assessee is dismissed." 4. If we read the order of penalty u/s. 271(1)(b) of the Act simultaneously with the findings of the Ld. CIT(Appeals)/NFAC, it would be absolutely clear that while upholding the order of penalty by the Ld. CIT(Appeals)/NFAC, there has been no application of mind and even the facts have been mentioned in wrong manner by it. The penalty has been levied for Rs. 10,000/- u/s. 271(1)(b) of the Act whereas the Ld. CIT(Appeals)/NFAC at Para 5.5 noted that "the A.O was right in levying penalty of R....

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....nally if permitted. Therefore no penalty should be initiated against me and oblige. However, the learned AO had imposed the penalty of Rs. 10,000/- without taken into consideration of responses to the notice of Sec. 142(1) and show-cause notice issued and imposed penalty in the order." 6. The assessee had filed reply through e-portal dated 17.07.2018 and submitted that the requisite information as sought for by the department was not possible to file in a short span of time and at the same time there is no intention on the part of the assessee to avoid the proceedings. That without considering the fairness of the submissions of the assessee or any merit in the grievance brought out by the assessee without any such verification o....