TMI Blog2023 (2) TMI 337X X X X Extracts X X X X X X X X Extracts X X X X ..... that the premium amount wrongly as Rs. 9,99,000/- instead of Rs. 99,900/- which was a typing mistake. Life Insurance Premium is not Rs. 9,99,000/- but it is Rs. 99,900/- only. As per Section 149(1)(b) of the Act, which prescribes the income escaped amount is Rupees one lakh or more is to be reopened for reassessment. Thus, we find that the initiation of reassessment proceedings itself is against the provisions of 149(1)(b) of the Act and invalid in law. Therefore the same is liable to be quashed. Thus the grounds raised by the Assessee is hereby allowed. Penalty levied u/s. 272A(1)(c) - HELD THAT:- Assessee s taxable income being less than the taxable limit prescribed under the Act, we have no hesitation in deleting the penalty lev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the AO ). She is engaged in the business of providing services related to Gruh Udyog and allied works on small scale basis. 2.0 As the net taxable income for the assessment year under consideration was below the basic exemption limit, no return of income was filed u/s.139 of the Income-tax Act, 1961 [hereinafter referred as to the Act ]. 3.0 The AO alleged that as per the information received from the DDIT (lnv.)-2 Rajkot the appellant has paid Rs.9,99,000/- to Shri Jinabhai Vagh towards the assignment of Insurance Policy Bajaj Alliance Life Insurance Co. and she has not explained the nature and source of this transaction in the return of income field for AY 2011-12 and therefore held that payment made was from undisclosed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct dated 27.12.2018 assessing the total income of appellant at Rs. 11,42,870/- wherein he made addition of Rs.9,99,000/- on the alleged ground of unexplained investment in Life Insurance Policy of Bajaj Alliance Life Insurance Co. 7.0 The above stated order was served upon to me on 15.01.2019. Due to lack of knowledge of complicated provisions of Income Tax Law, appellant has handed over the same to her husband Shri Hareram H. Sahani to take necessary action against the same. However, he has misplaced assessment order and forgot to file appeal against assessment order. Subsequently, on receipt of notice related recovery of demand for the assessment year under consideration, he realized that he missed to send the order to the Chartered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Notary Public. However the Ld. CIT(A) relying upon various case laws held that the assessee failed to explain sufficient cause and thereby dismissed the appeal filed by the assessee as time barred. 3. Aggrieved against the same, the assessee is in appeal before us raising the following Grounds of Appeal. 1. The grounds of appeal mentioned hereunder are without prejudice to one another. 2. The learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter referred to as the CIT(A) erred on facts as also in law in dismissing appeal ex-parte. 3. The Ld. CIT(A) erred on facts as also in law law in rejecting the appellant's application for condoning delay in filing the appeal. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee, which the assessee has not declared in her Return of Income. The assessee filed her Return of Income on 05.12.2018 declaring total income of Rs. 1,43,870/-, which below the taxable income. Hence, she explained that she has not liable to file Return of Income. Further the assessee explained that the premium amount for Life Insurance Policy was not Rs. 9,99,000/- but only Rs. 99,900/-, which is a mistake and produced a notarized declaration by the Sales Manager of Bajaj Alliance Life Insurance Company quoting that the premium amount wrongly as Rs. 9,99,000/- instead of Rs. 99,900/- which was a typing mistake and also produced copy of the premium paid Challan which is reproduced as follows: Bajaj Allianz Life Insurance Co. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, which prescribes the income escaped amount is Rupees one lakh or more is to be reopened for reassessment. Thus, we find that the initiation of reassessment proceedings itself is against the provisions of 149(1)(b) of the Act and invalid in law. Therefore the same is liable to be quashed. Thus the grounds raised by the Assessee is hereby allowed. 5. In the result, the appeal filed by the Assessee is allowed. ITA No. 09/Rjt/2022 7. This appeal is filed by the Assessee as against the Appellate order dated 1612.2021 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as NFAC ), confirming the levy of penalty under section 272A(1)(c) of the Income Tax Act, 1961 (her ..... X X X X Extracts X X X X X X X X Extracts X X X X
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