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2022 (9) TMI 971 - Income Tax
Levy of penalty u/s 272A(1)(d) - non-compliance of notices u/s 143(2) - non-compliances by the assessee of the notices issued by the AO u/s 143(2) and 142(1) during assessment proceedings - HELD THAT:- The assessee is a retired Professor from Banaras Hindu University. He is still actively involved with various eminent universities and institutions, evidence is placed on record. It is also claimed that due to his engagements with these universities/institutions, he is keeping busy and also requires travels which keeps him away from home town. The switchover of assessment proceedings to electronic mode and now faceless assessments are very laudable steps initiated by GOI, but at the same time there will be some teething problems for the citizens to adapt to new situations especially the older generation which is required to be kept in mind while imposing penalty.
The bonafide or other wise malafide of non compliance is also required to be kept in mind. The tax and interest are statutory levies, while penalty imposable u/s 272A(1)(d) is subject to Section 273B. Thus, if the taxpayer is able to demonstrate reasonable cause for failure then no penalty is exigible. If in each case for failure to comply with statutory notices issued by the authorities , the penalty is mandatorily to be imposed u/s 272A(1)(d) on the tax-payers, Section 273B will become otiose. It all depends upon the facts and circumstances of the case which requires investigation of complete facts, so as to ascertain that whether the tax-payer is able to demonstrate the reasonable cause as is contemplated u/s 273B or not. The Authorities must look into the entire facts and then arrive at conclusion whether it is a fit case for imposition of penalty u/s 272A(1)(d). Thus, we consider it fit to set aside the appellate order passed by CIT(A) and restore this matter back to the file of CIT(A) for fresh adjudication, after considering all the relevant facts and circumstances , and then arrive at conclusion whether it is a fit case for levy of penalty u/s 272A(1)(d) - Needless to say that proper and adequate opportunity of being heard be provided by ld. CIT(A) to the assessee in set aside remand proceedings.