Case Law Details
Ganeshi Lal Narayan Das Vs DCIT (Exemption) (ITAT Agra)
In the case of Ganeshi Lal Narayan Das vs. DCIT (Exemption), the Income Tax Appellate Tribunal (ITAT) Agra addressed the issue of a penalty levied under Section 271(1)(b) of the Income-tax Act, 1961. The crux of the case was whether the penalty imposed on the assessee was justified given the timing and handling of the notices and objections involved.
Background: The assessee, Ganeshi Lal Narayan Das, had filed his original return of income for the assessment year 2010-11 on 29th September 2010, declaring nil income. The return was scrutinized, and an assessment order under Section 143(3) was passed on 25th May 2012, accepting the returned income. Subsequently, on 30th March 2017, a notice under Section 148 was issued to reopen the case.
In response, the assessee filed a reply on 4th April 2017, seeking the reasons for the reopening. Upon receiving the reasons, the assessee raised objections on 16th May 2017, challenging the jurisdiction of the Assessing Officer under Section 147, referencing the Supreme Court judgment in G.K.N. Driveshafts (I) Ltd. However, the Assessing Officer did not dispose of these objections and instead issued a notice under Section 142(1) on 24th July 2017, calling for further explanations and scheduling a hearing for 8th August 2017.
Key Events and Dispute: The assessee contended that the notice dated 24th July 2017 was not received. Subsequently, on 25th October 2017, the Assessing Officer issued a show cause notice proposing to levy a penalty under Section 271(1)(b) for non-compliance with the notice dated 24th July 2017. The assessee responded on 1st November 2017, indicating that the notice was received only on 30th October 2017 at 3:00 PM, by which time the penalty order had already been passed on the same day.
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