Rishikesh Pandey Vs ITO (ITAT Raipur)
Income Tax Appellate Tribunal (ITAT) Raipur has set aside a penalty of Rs. 10,000 imposed on Rishikesh Pandey by the Assessing Officer (AO) under Section 271(1)(b) of the Income Tax Act, 1961. The penalty was initially levied for alleged non-compliance with a notice issued under Section 142(1) during assessment proceedings for the Assessment Year 2016-17. The ITAT’s decision, pronounced on June 26, 2025, overturned an order by the National Faceless Appeal Centre (NFAC), Delhi, which had upheld the penalty.
Background of the Case
The case originated when the AO issued a notice under Section 142(1) on June 25, 2018, via the ITBA portal, requiring Rishikesh Pandey to furnish certain documents by June 29, 2018. On the due date, Pandey requested a 10-day adjournment, which was granted, pushing the next hearing to July 9, 2018. However, the required documents were not submitted by this extended deadline. Subsequently, a show-cause notice dated July 13, 2018, was issued, asking Pandey to explain the non-compliance by July 17, 2018. When no explanation or submission was received by the AO, a penalty of Rs. 10,000 was imposed on July 18, 2018.
Appellate Proceedings and CIT(A)’s Affirmation
Rishikesh Pandey appealed the penalty order to the CIT(A)/NFAC. The CIT(A) upheld the penalty, asserting that the appellant had failed to provide a valid reason for not responding to the statutory notices on two occasions. The CIT(A) highlighted that Section 271(1)(b) specifically pertains to “non-compliance” with statutory notices and is distinct from assessment proceedings. The appellate authority concluded that since no reasonable cause was shown for the non-compliance, the AO’s action was justified.
