Case Law Details
Manjeet Kaur Vs ITO (ITAT Jaipur)
In the case of Manjeet Kaur vs. ITO, a crucial matter was brought before the Income Tax Appellate Tribunal (ITAT) in Jaipur. The central issue at hand was the imposition of a penalty under Section 271(1)(b) of the Income-tax Act, 1961. The appeal, filed by the assessee, contested the penalty imposed by the ld. CIT(A) and questioned the validity of the penalty under the circumstances.
Detailed Analysis: The assessment in question was finalized on September 29, 2021, under Section 144 r.w.s 147 of the Income-tax Act, 1961, with an income of Rs. 20,57,003/-. During the assessment proceedings for the assessment year 2013-14, the assessee faced challenges in complying with the notices issued under Section 142(1) dated September 16, 2021. As a result, penalty proceedings under Section 271(1)(b) were initiated through show-cause notices issued under Section 274 r.w.s. 271(1)(b) of the I.T. Act, 1961, dated September 29, 2021.
The critical point of contention was that the assessee did not respond to these notices through the e-portal. Subsequently, after the introduction of the Faceless Penalty Scheme in 2021, the assessee was served another notice dated January 17, 2022, with a request to upload submissions as per the Faceless Penalty Scheme’s mandate. In response, the assessee requested an adjournment until the decision of CIT Appeal faceless.
The Assessing Officer (AO) considered the request but decided to impose a penalty of Rs. 10,000 under Section 271(1)(b) of the Act for non-compliance with the notice under Section 142(1) dated September 16, 2021. The ld. CIT(A) affirmed this penalty.
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