Case Law Details
Dhanasingh Nagamuthu Vs ITO (ITAT Bangalore)
Dhanasingh Nagamuthu appealed against the penalty imposed under Section 272A(1)(d) of the Income Tax Act. The penalty was levied for non-compliance with a notice issued under Section 142(1) of the Act. The assessee argued that the assessing officer had not provided a proper opportunity to respond and establish reasons for non-compliance, as required under Section 274(1) of the Act. The case was brought before the ITAT Bangalore.
Analysis: The ITAT Bangalore examined the facts of the case and found that the assessing officer had not disposed of the letters filed by the assessee effectively. The assessee had requested for some time to gather details and respond, but the assessment order was passed without addressing the assessee’s letter. The tribunal concluded that the inaction of the assessing officer and the failure to grant an extension of time created a belief in the assessee that the request was accepted. Therefore, the tribunal determined that the assessee was not guilty of contumacious or apparent conduct in failing to comply with the notice under Section 142(1) of the Act. As a result, the penalty imposed under Section 272A(1)(d) was deemed unjustified.
Conclusion: The ITAT Bangalore allowed the appeal of Dhanasingh Nagamuthu and deleted the penalty imposed under Section 272A(1)(d) of the Income Tax Act. The tribunal found that the assessing officer had not provided a proper opportunity for the assessee to respond and establish reasons for non-compliance with the notice issued under Section 142(1) of the Act. The inaction of the assessing officer in disposing of the letters filed by the assessee contributed to the belief that an extension of time was granted. Therefore, the penalty was deemed unwarranted in this case.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
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