Globus Infocom Limited Vs DCIT (ITAT Delhi)
Income Tax Appellate Tribunal (ITAT) Delhi Bench has overturned a penalty of Rs. 10,000/- imposed on Globus Infocom Limited by the Assessing Officer (AO) under Section 271(1)(b) of the Income Tax Act, 1961, for alleged failure to comply with statutory notices. The Tribunal’s decision, pronounced on June 29, 2016, emphasized the significance of the final assessment order being passed under Section 143(3) of the Act, rather than Section 144, and the necessity of the AO recording satisfaction for imposing a penalty.
The case centered on the assessment proceedings for Globus Infocom Limited, during which the AO issued multiple notices under Section 143(2) and Section 142(1) of the Income Tax Act. These notices, dated April 12, 2012, August 23, 2012, September 6, 2012, and September 17, 2012, required compliance on various specified dates. According to the AO, the assessee, Globus Infocom, failed to appear through an Authorized Representative (AR) or submit any adjournment requests on any of these scheduled dates.
Following these alleged instances of non-compliance, the AO issued a show-cause notice on October 11, 2012, asking the assessee to explain why a penalty under Section 271(1)(b) should not be imposed. The assessee reportedly did not comply with this notice either, failing to appear on the scheduled date of October 19, 2012. Consequently, the AO proceeded to levy a penalty of Rs. 10,000/-, specifically citing one instance of default related to the notice dated September 17, 2012. This penalty was subsequently upheld by the Commissioner of Income Tax (Appeals) [CIT(A)]-XV, New Delhi, in an order dated December 6, 2013, prompting Globus Infocom to appeal to the ITAT.
