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TMI Blog2022 (6) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... unal"), reads as under : "1. The learned CIT(A) has erred in law and on facts in not considering the nonservice of notice as reasonable cause for non-compliance of the notice issued u/s 142(1) on the last known address. 2. The learned CIT(A) has erred in law and on facts in not appreciating the fact that the appellant has left her job and shifted to Jaipur address and no notice could be served. 3. The learned CIT(A) has erred in law and on fact in not considering the judgments cited by the appellant in her written submission wherein it is held that change of address can be a reasonable cause u/s 273B and reasonable opportunity of hearing means reasonable opportunity of oral hearing in penalty proceedings." 3. The brief facts of the case are that the re-assessment in the case of the assessee was framed by AO on 27th December, 2017 under Section 144 read with Section 147 of the 1961 Act, assessing total income of Rs. 12,67,770/- in the hands of the assessee, as against returned income of Rs. 2,45,470/- . The penalty notice under Section 271(1)(b) was issued by AO for non-compliance of notice issued by AO under Section 142(1) during the course of reassessment proceedings . The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... btaining statutory approval from the CTT, Allahabad, he has issued notice u/s 148 to reopen the assessment on 31- 03-2017. 4. As mentioned by the AO in his order, he had issued notices u/s 142(1) on different dates right from 26-04-2017 to 31-10-2017 but no compliance of the same has been made and so he has completed the assessment u/s 144 of the Income Tax Act, 1961. The said assessment has resulted in addition of Rs. 10,23,026/- u/s 69A in the returned income of the appellant. 5. The appellant came to know only in August 2018 that certain income tax proceedings are going on against her as a postman had come with certain closed envelops to be served upon her, when she came in contact with her colleague of Aditya Birla Public School. Immediately, she requested her counsel to apply for the certified copy of assessment under and penalty orders and reasons for Initiating proceedings u/s 148 and copy of order sheet entries. After obtaining the same on 13.08.2018 the appellant approached for filing appeal against the assessment order dated 27-12-2017 and against penalty orders u/s 271(1)(b) and that of u/s 271(1)(c). Delay caused in this regard is beyond control of the appellant and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned AO. Accordingly as per overriding provisions of Section 273B no penalty could be imposed on her. v. The appellant places her reliance in this regard on following judicial pronouncements. 1. Balram Kumar Mahendra v. Income Tax Officer [2012)121 taxmann.com222 [Delhi Tribunal] 2.CWT v. Sri Jagdish Prasad Choudhary (1995) 211 ITR 472 (Pat.) Copies of judgments cited above are annexed with this submission as annexure-A and annexure-B for your honour's kind perusal. Prayer In view of above submission the appellant begs to submit that your honour may kindly be pleased to cancel the order of penalty passed by the AO u/s. 271(1)(b)." 5. The ld. CIT(A) dismissed the appeal filed by the assessee , vide appellate order dated 05th September, 2019, by holding as under: "Decision : I have gone through the facts and the order of AO and submissions made by appellant. I am not able to agree with the submissions made by appellant. On perusal of the penalty order and also the corresponding assessment order, it is seen that the assessee has failed to make compliance to the notices issued by the A.O.. The assessment order has been framed u/s 144 of the I.T. Act. Further, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g re-assessment proceedings, the AO allegedly issued three notices u/s 142(1) , dated 26.04.2017, 08.06.2017 and 31.10.2017 as found mentioned in reassessment order passed by AO u/s 144/147 . It was submitted that the assessee shifted from Renusagar to Jaipur, in the year 2014. It was also submitted that ld. CIT(A) dismissed penalty appeal , prior to the quantum appeal decided by ld. CIT(A), N.F.A.C. , New Delhi , and there is no appeal filed by Revenue against the appellate order passed by ld. CIT(A) against quantum re-assessment, as tax effect was lower than the threshold limit. The Ld. Sr. DR confirmed that the appeal against the penalty order was disposed off by ld. CIT(A) on 05.09.2019, while appeal against quantum re-assessment was disposed of by ld. CIT(A), NFAC, New Delhi later on 17.12.2021 , i.e. appeal against penalty order u/s 271(1)(b) was disposed off by ld. CIT(A), prior to the disposal of appeal by ld. CIT(A) against the quantum re-assessment. 7.We have heard rival contentions and perused the material on record. We have observed that the assessment of the assessee was reopened by Revenue by invoking provisions of Section 147/148 of the 1961 Act. The AO issued notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... round No. 1 & 2 are, therefore, Allowed. 2. Since , the assessment order is treated as void ab-initio and the same has been quashed , therefore, there is no further need to consider and adjudicate the remaining grounds of appeal. Ground No. 3 & 4 are thus not adjudicated upon. 3. In the result , the appeal is Allowed." Thus, as could be seen that the ld. CIT(A), NFAC, New Delhi , while adjudicating appeal filed by the assessee, against quantum re-assessment, has quashed the re-assessment order dated 27.12.2017 passed by AO u/s 144/147 of the 1961 Act., by holding that reopening of the assessment u/s 147/148 was based on wrong and incorrect reasons recorded, and secondly that the reassessment order dated 27.12.2017 passed by the AO was without jurisdiction and void ab-initio. Thus, ld. CIT(A), NFAC, New Delhi quashed reopening of the assessment and deleted the additions as were made by the AO. This appellate order of the ld. CIT(A), NFAC, New Delhi against quantum re-assessment has attained finality , as ld. Sr. DR. could not show that an appeal was filed with tribunal by Revenue against the appellate order dated 17.12.2021 passed by ld. CIT(A), NFAC, New Delhi. Thus, once the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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