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TMI Blog2023 (4) TMI 486X X X X Extracts X X X X X X X X Extracts X X X X ..... e 30.08.2019. But no reply was filed by the assessee on the said date of hearing. Thereafter, one more opportunity was granted to the assessee vide this office notice u/s 142(1) dated 01.10.2019 to file reply on 11.10.2019, but again no compliance was made by the assessee. 3. Again to provide natural justice, one more opportunity for reply was granted to the assessee by issuing final show cause notice u/s 142(1) of the I.T. Act, 1961 to the assessee on 01.11.2019 to file reply by 11.10.2019. In response, the assessee filed reply online on 04.11.2019 relevant to scrutiny reasons received from assessee on ITBA system. 4. Aggrieved from the order of the ld. AO levying penalty of Rs. 20,000/- u/s 272A(1) (d) of the Income Tax Act. The assessee has preferred an appeal before ld. CIT(A). The relevant finding of the ld. CIT(A) recorded in para 6 of his order and the same is reproduced herein below. "6.0 ANALYSIS OF THE FACTS AND ADJUDICATION OF THE GROUNDS: 6.1 The assessee has raised six grounds of appeal, out of which Ground No. 6 is general in nature and, hence, do not call for adjudication. Ground Nos. 1 to 5 are raised against the AO's action in levying a penalty of Rs.20,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, she is expected to be knows the procedures of service of the notices and to comply with the same. Appellant is aware of the selection of her to the scrutiny when the notice u/s 143(2) is served on her. She had responded to that notice. As seen from the assessment order, it is evident that there is a sufficient gap between the date of issuance of notice u/s 143(2) and notices calling for information u/s 142(1). The notices u/s 143(2) & 142(1) are sent to e-filing portal and e-mail. The service of the notice in the e-filing portal or e-mails would have been alerted through SMS of the registered mobile also.. 6.6 If the argument of the appellant is accepted that she is a house wife and not having the computer knowledge: filing of the returns also could also become late or not filed at all. But, the assessee is filing the returns regularly. This shows that the appellant's representative is taking care of the filing the returns and making the compliances to the scrutiny prior and after the selection of case for the scrutiny. Once the compliance is made to the notice issued u/s 143(2) as submitted in the written submissions, the same appellant cannot take a plea that she is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.8 In view of the above, I don't find fault with the AO in initiating the penalty proceedings as well as levying the penalty u/s. 272A(1)(d) of the Act, for the assessee's failure to respond to the notices and not offering any acceptable reasons for her failure to respond to the notices u/s 142(1) in two occasions. Therefore, it is amply clear that the assessee has not fulfilling the conditions envisaged u/s. 273B of the Act. Accordingly, I endorse the action of the AO in levying a penalty of Rs.20,000/- u/s. 272A(1)(d) of the Act. 6.9 The appellant has not brought out any facts relating to the circumstances which prevented her from compliance during the assessment proceedings. On verifying the facts from the records it appears that there is a gross negligence or deliberate inaction or lack of bonafide on part of the appellant. Thus, the grounds of appeal raised by the assessee on this issue are dismissed." 5. As the assessee did not find any favour from the order of ld. CIT(A). The assessee has preferred this appeal before this Tribunal on the grounds reproduced herein below. "1. Ld. CIT and AO ignored the reasonable cause, while levying penalty, that noncompliance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsp; 08/11/2019 08111912038922 2. In response to the penalty notice dated 01/11/2019, assessee submitted as under on 04/11/2019: Please refer your notice dated 01/11/2019 asking me to appear personally or thru A/R to explain the reasons for having not complied the notice u/s 142(1) dated 22/08/2019 due to be filed on or before 30th August, 2019. It has to be submitted that: a) I am not a computer literate person and I do not have regular access to my e-mail account i.e. [email protected]. Notice might have been mailed at the said address but the same were never received by me. b) No physical notice was served upon me and therefore, I could not attend the proceedings. c) My CA cum AR informed me on 01/11/2019 about the said notice and I immediately sought the time upto 15/11/2019 so as to submit all information required by you for completing the assessment. Therefore, please do not levy the penalty as the act was not intentional or malafide and it was just because of lack of computer-literacy on my part. 3. Assessee's failure to reply was never intentional and she complied with notices without any delay after coming to know about such notices. The assessee wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of ITA NO.1870/MUM/2020 (A.Y.2017-18) Triumph International Finance India Limited, order pronounced on 10/03/2022. Copy of the order is being attached with this submission (at page No. 7 to 10) , before your honours. Hence, the appeal of the assessee deserves to be allowed." 7. In addition to the above written submissions, the ld. AR of the assessee fairly accepted that the matter was decided ex party on account of the assessee being not lady dependent upon the others two respond the notices and therefore, it remained non-compliance before ld. CIT(A) but the at the same time, the ld. AR of the assessee submitted that the levy of penalty u/s 272A(1) (d) of the Income Tax Act is on account of failure of the assessee to comply with the provisions of section 142 notices which alternatively complied of the order for the year under consideration has been passed u/s 143(3) of the Act. Therefore, there is no reason to sustain the penalty passed u/s 272A(1) (d) of the Income Tax Act. He has also submitted that there is only one default and that assessee was not accustomed use of the e-mail and the assessee has well within the law participated in the assessment proceedings and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 142(1) of the Act. It is pertinent to mention here that subsequently on learning about ongoing assessment proceedings, the assessee appeared before the Assessing Officer and furnished the requisite details. The Assessing Officer after taking note of the documents/submissions of the assessee has passed the assessment order under section 143(3) of the Act . It is not a case of absolute non-appearance of the assessee before the Assessing Officer. 5. The first appellate authority has rejected the explanation furnished by the assessee for non-compliance of the notice issued under section 142(1) of the Act merely for the reason that during penalty proceedings under section 272A(1)(d) of the Act, the assessee has not stated the reasonable cause. We are not in agreement with the findings of CIT(A). The assessee has explained that about ongoing assessment proceedings the assessee came to know only on receipt of order u/s 272A(1)(d) of the Act and demand notice. The explanation furnished by the assessee before the CIT(A) and before the Tribunal is consistent. We are satisfied that nonappearance of the assessee in response to the initial notice under section 142(1) of the Act was not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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