Balbir Kaur Birdie Vs ITO (ITAT Pune)
Income Tax Appellate Tribunal (ITAT) Pune has set aside a penalty of ₹20,000 imposed on Balbir Kaur Birdie for non-compliance with notices under Section 142(1) of the Income Tax Act, 1961. The penalty was levied after the assessee failed to respond to notices issued by the Assessing Officer (AO) on March 7, 2021, and March 17, 2021, during the COVID-19 pandemic. The assessee’s representative argued that the lack of response was due to technical difficulties and restricted access to communication facilities. The Tribunal found that the circumstances constituted a reasonable cause for non-compliance and invoked Section 273B, which provides relief from penalties when reasonable cause is demonstrated.
The case stemmed from a revision petition filed under Section 264, where the Principal Commissioner of Income Tax (PCIT) set aside the original assessment under Section 143(3) for fresh adjudication. Despite the reassessment, the total income remained unchanged at ₹75,55,050. However, due to non-compliance with statutory notices, the AO imposed a penalty of ₹10,000 per instance under Section 271(1)(b), which was upheld in an ex-parte order by the Commissioner of Income Tax (Appeals) [CIT(A)]. The ITAT noted that the assessee, represented by his wife, was a former Major General in the Indian Army and faced challenges in responding due to the pandemic. The Tribunal ruled that imposing a penalty in such circumstances was unjustified and directed its cancellation.
