Case Law Details
Jai Gopal Sondhi Vs ITO (ITAT Delhi)
We note that although the Assessing Officer has levied penalty in all the four cases for non-compliance of statutory notices, all the same he has proceeded to frame the assessment order u/s 143(3) of the Act. We also note that the CIT(A), while dismissing the assessees’ appeals has observed on identical lines in all the four impugned orders that subsequent compliance by the assessee to the statutory notices cannot be a basis for non levy of penalty on account of earlier defaults. The Ld. CIT(A) has also observed in all the four impugned orders that the claim of the assessees that no penalty is leviable since the assessment orders had been issued u/s 143(3) was not acceptable as the impugned penalty had been levied for specific defaults on specific dates. We are of the considered opinion that we are bound by the judicial precedent laid down by the Co-ordinate Bench of this Tribunal in the case of Akhil Bhartiya Prathmik Shikshak Sangh Bhawan Trust vs. ADIT (supra) wherein the Tribunal had taken a view that where the assessee had not complied with notice u/s 142(1) of the Act but the assessment order was passed u/s 143(3) of the Act and not u/s 144 of the Act, that meant that subsequent compliance of assessment proceedings was considered as good compliance and defaults committed earlier were ignored by Assessing Officer and, therefore, levy of penalty u/s 271(1)(b) was not justified. The facts in these four appeals are identical to the facts in the case of Akhil Bhartiya Prathmik Shikshak Sangh Bhawan Trust vs. ADIT (supra) and further the Department has also not pointed out any order in favour of the Department in this regard. Therefore, respectfully following the order of the Co-ordinate Bench of this Tribunal in the case of Akhil Bhartiya Prathmik Shikshak Sangh Bhawan Trust vs. ADIT (supra), we set aside the impugned orders in all the four appeals and direct the Assessing Officer to delete the penalty.
FULL TEXT OF THE ITAT JUDGEMENT
These four appeals have been preferred by the above captioned assessees and have been filed against the separate orders of the Learned Commissioner of Income Tax (Appeals) {CIT(A)} wherein he has upheld the imposition of penalties u/s 271(1)(b) of the Income Tax Act, 1961 (hereinafter called ‘the Act’). Since these appeals involved identical issues, they were heard together and they are being disposed of through this common order for the sake of convenience.
2.0 The brief facts of the cases are that penalty u/s 271(1)(b) has been imposed by the Assessing Officers for non-compliance by the assessees with respect to the statutory notices issued under the Act. In the case of Sh. Ashok Nayyar, the penalty levied is of Rs.20,000/-, in the case of Sh. Jagjeet Singh Sahi, the penalty levied is of Rs. 70,000/-, in the case of Jai Gopal Sondhi, the penalty levied is of Rs.90,000/- and in the case of Sh. Mohit Monocha, the penalty levied is of Rs.80,000/-.
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Can Penalty proceedings go aheaf u_s 271(1)(c) if assesment order u/s 143(3) is passed by officer abd 271 B penalty order is also passed .