Lila Lila Chayal Vs DCIT (ITAT Jodhpur)
No Section 272A(1)(d) Penalty for Initial Non-Compliance After AO Accepts Final Assessment Details; ITAT Cancels Section 272A(1)(d) Penalty Because AO Made No Adverse Addition; Penalty Under Section 272A(1)(d) Deleted After Assessee Filed Detailed Compliance.
The appeals were filed by multiple assessees before the Income Tax Appellate Tribunal (ITAT), Jodhpur, against separate orders passed by the Commissioner of Income Tax (Appeals), Jaipur-5 for Assessment Year 2022-23. Since all the appeals involved identical facts and common issues, they were heard together and disposed of through a consolidated order, with ITA No. 812/Jodh/2025 treated as the lead case.
The principal issue in all the appeals related to the validity of penalty orders passed under Section 272A(1)(d) of the Income Tax Act for alleged non-compliance with notices issued under Section 142(1) of the Act. The assessees challenged the confirmation of penalty of Rs. 10,000/- by the CIT(A), contending that the appellate authority failed to consider the reasons for non-compliance in light of principles of natural and substantial justice.
In the lead case, the assessee had filed the return of income on 26.07.2022 declaring total income of Rs. 3,73,890/-. The case was selected for scrutiny assessment. During assessment proceedings, the Assessing Officer (AO) issued notices under Section 142(1) requiring the assessee to furnish details and information. According to the AO, there were six instances of non-compliance with the statutory notices. Consequently, a penalty show-cause notice was issued and a penalty of Rs. 10,000/- under Section 272A(1)(d) was levied. However, the assessment itself was completed under Section 143(3) of the Act by accepting the returned income declared by the assessee without any additions or adverse findings.
