2026 (4) TMI 719

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....ar ["AY"] 2020-21 imposing a penalty of Rs. 30,000/- u/s 272A(1)(d) of Income-tax Act, 1961 ["the act"] has been upheld, the assessee has filed this appeal on following grounds: "1. Whether on the facts of case and in law, the Ld. CIT (A) is right in confirming the penalty levied u/s 272A(1)(d) without considering the fact that the assessment order was passed under section 143(3) on the basis of subsequent compliance to notices issued u/s 142(1) 2. Whether on the facts of case and in law, the Ld. CIT (A) is right in confirming the penalty order u/s 272A(1)(d) being the penalty order was passed by the DCIT without approval of Jt. Commissioner as envisaged in section 274(2) of Income Tax Act, 1961. 3. That no proper....

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....assessment-order: "Assessee has submitted details and explanations from time to time including the reconciliation of opening and closing stock, stock valuation report, details of creditors, deduction claimed u/s 80P. The submissions of the assessee are kept on ITBA record." Thereafter, in Para 4 / Pages 3 to 16 of assessment-order, the AO has taken into account the assessee's replies/submission while completing assessment and passed assessment-order dated 23.09.2022 u/s 143(3) and not best judgement or ex-parte u/s 144. Therefore, the non-compliances/delay compliances of the notices, if any, have been dissolved and in such a situation, penalty cannot be imposed. To support her stand, Ld. AR relied upon the decision of ITAT, Nagpur in Sabir ....

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....nt. Therefore, there were delays in collecting documents and information for submitting replies but otherwise there was nothing willful or deliberate. That there exists a reasonable cause which must be excused in terms of section 273B of the Act. 4. Ld. DR for revenue relied upon order of AO although he left the matter to the wisdom of bench. 5. We have considered rival submissions of both sides and perused the orders of lower authorities as well as the material placed on record. From the documentary evidences placed in the Paper-Book, it is evident that the assessee had responded to each of the notices issued u/s 142(1) although there were some delays. The replies dated 26.11.2021, 26.03.2022, 29.08.2022 and 05.09.2022 along with sup....