Case Law Details
Salasar Derivatives Pvt. Ltd. Vs ITO (ITAT Mumbai)
Introduction: This article scrutinizes the case of Salasar Derivatives Pvt. Ltd. versus ITO, as heard by ITAT Mumbai. The central question revolves around the validity of the penalty imposed under section 271(1)(b) of the Income Tax Act. The article delves into the circumstances leading to the penalty and evaluates the arguments presented by both parties.
Detailed Analysis:
The dispute arises from the non-appearance of the assessee before the ld. AO on the scheduled date of hearing, leading to the imposition of a penalty under section 271(1)(b). The ld. AO proceeded with the penalty even though the assessee had appeared on the subsequent day and submitted the required documents physically. The ld. CIT(A) upheld the penalty.
The assessee explained that its authorized representative was engaged in an audit assignment in Jalgaon on the scheduled hearing date. Despite the absence on the specified day, the authorized representative ensured subsequent appearances before the ld. AO, providing necessary details. The assessment was eventually completed under section 143(3) of the Act, indicating compliance by the assessee.
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