Medical Illness is reasonable cause for non-appearing on date

By CA Sandeep Kanoi Income Tax Judiciary May 24, 2017

TaxGuru Citation: 2017 taxguru.in 548
Case Name: Sangeeta Sawhney Vs. ACIT (ITAT Delhi)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Related Assessment Year: 2006- 2007
Courts: All ITAT, ITAT Delhi

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The impugned penalty proceedings u/s 271(1)(b) has been levied for non-compliance of one notice u/s 142(1) fixing the date of hearing of the case on 18.07.2013. Prior to this notice the assessee had duly complied with all the notices and even compliance was made to subsequent notices and that is why the assessment has been completed u/s 143(3). The reasons given by the assessee for non- compliance for particular date was that – the assessee was suffering from UTI and Typhoid fever and this fact has not been rebutted by the Ld. CIT (Appeals), because the same reasons was cited before the Assessing Officer through reply filed in dak. The Ld. CIT (Appeals) has accepted the said reasons for some of the years, because out of 7 assessment years for which penalty was levied for non compliance of notice dated 11.7.2013, he has deleted the penalty for 3 years and balance 4 years has been confirmed. If there was a reasonable cause within the ambit of section 273B for 3 years for default of same notice, then no penalty u/s 271(1) (b) should be imposed. Medical illness and that to be in the nature of the typhoid fever and UTI is definitely reasonable cause for non- appearing on the date and therefore, we are of the opinion that no penalty should be levied u/s 271(1)(b) in such circumstances as the same is covered under exception of ‘reasonable cause’ as enshrined in section 273B. Thus, the penalty levied u/s. 271(1)(b) for sum of Rs. 10,000/- for each assessment year is hereby deleted.