Case Law Details
Chhatrapati Sahakari Sakhar Karkhana Ltd. Vs ACIT (ITAT Pune)
AO had issued notices u/s 142(1) on 01.02.2023 & 24.02.2023 & also a show cause notice u/s 144 on 27.03.2023. Assessee failed to comply with any of these notices. Before CIT(A), it was argued that delay in appeal & non-compliance occurred because notices were received by an Account Clerk who failed to inform management. CIT(A) rejected this explanation & confirmed penalty of ₹10,000/- u/s 271(1)(b).
Before Tribunal, Assessee reiterated the same explanation but admitted that no adjournment request or reply had been filed before AO. Tribunal noted that provisions of s.271(1)(b) clearly apply where there is failure to comply with notices u/s 142(1) or directions u/s 142(2A). Since there was admitted non-compliance & no sufficient cause, penalty was justified. Accordingly, Tribunal upheld penalty imposed by AO & dismissed Assessee’s appeal.
FULL TEXT OF THE ORDER OF ITAT PUNE
This is an Appeal filed by the Assessee against the Order of the Commissioner of Income tax (appeal) (NFAC) under section 250 of the Income Tax Act, 1961 for A.Y.2016-17 dated 29/10/2024 emanating from Penalty Order u/s.271(1)(b) dated 19/02/2024.
2. Findings & Analysis :
We have heard both the parties and perused the records. In this case, Assessing Officer (AO) has passed order u/s.271(1)(b) of the Act dated 19.02.2024 for A.Y. 2016-17. It is an admitted fact by ld. AR that AO had issued notice u/s.142(1) on 01.02.2023 and 24.02.2023. It is also an admitted fact that assessee has not complied these notices issued by ld. AO. We specifically asked ld. AR whether any adjournment letter was filed requesting for adjournment. Ld. AR submitted that no adjournment letter was filed. AO had also issued a show cause notice u/s.144 of the Act on 27.03.2023 but all these remained uncomplied with. The only reason given by ld. AR is that notices were received by one Account Clerk of the assessee and Account Clerk failed to bring this to the notice of the officers. Aggrieved by the order u/s.271(1)(b) dated 19.02.2024 assessee filed appeal before ld.CIT(A) with a delay. Assessee submitted before ld.CIT(A) that delay was caused on account of the Account Clerk of the assessee. In this case, the facts are that assessee has not complied notices u/s.142(1) and 144 of the Act issued by ld. AO. Section 271(1)(b) of the Act is reproduced hereunder :
“(b) has failed to comply with a notice under sub-section (2) of section 115WD or under sub-section (2) of section 115WE or under sub-section (1) of section 142 or sub-section (2) of section 143 or fails to comply with a direction issued under sub-section (2A) of section 142, or”
2.1 Admittedly, there was non-compliance to the notices issued by AO. No sufficient cause has been submitted by the assessee for non-compliance. This non-compliance was voluntary. In these facts and circumstances of the case, we uphold the order u/s.271(1)(b) of the Act. Grounds of appeal raised by the assessee are dismissed.
3. In the result, the appeal filed by the assessee is dismissed.
Order pronounced in the open Court on 28th August, 2025.
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