TMI Blog2023 (9) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... r sought for any adjournment of the hearing of the case. No reasons to interfere with the levy of penalty u/s. 271(1)(b) of the Act. Thus the grounds raised by the assessee are devoid of merits and the same is hereby dismissed. Levy of penalty u/s. 271F - assessee has filed the Return of Income after issuance of notice u/s. 148 of the Act, even though the taxable income of the assessee is higher, who is liable to file regular Return of Income u/s. 139(1) - HELD THAT:- The assessee offered no explanation before any of the lower authorities for non-filing of regular Return of Income. Therefore the assessee is liable to levy of penalty u/s. 271F of the Act. Thus the grounds raised by the assessee are devoid of merits and the same are reje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y with the notice issued u/s. 142(1) dated 18-12-2018 in spite of service of notice to the assessee, the A.O. initiated penalty proceedings u/s. 271(1)(b) of the Act. The Assessing Officer issued a show cause Notice u/s. 274 r.w.s. 271(1)(b) of the Act calling for explanation from the assessee why not to levy penalty. In response, the assessee furnished a written submission dated 02-01-2019 requesting to keep the penalty proceedings in abeyance till disposal of his quantum appeal pending before First Appellate Authority. Since, the outcome of the quantum appeal has no bearing on the default of not responding to a notice issued u/s. 142(1), the Assessing Officer observed that the penalty proceedings cannot be kept in abeyance. However the Ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red by the assessee. 3. Aggrieved against the Penalty orders, the assessee filed appeals before Ld. National Faceless Appeal Centre (NFAC). The assessee failed to offer any explanation for non-compliance of notice u/s. 142(1) of the Act and not filing the Return of Income u/s. 139(1) of the Act. Therefore the Ld. CIT(A)-NFAC, confirmed the penalties levied u/s. 271(1)(b) and u/s. 271F of the Act observing as follows: U/s. 271(1)(b):- I have considered the Statement of Facts and perused the relevant records. The only issue in this appeal, is imposition of the penalty u/s. 271(1)(b) of the Income Tax Act, 1961, amounting to Rs. 10,000/-. The penalty was imposed due to non-compliance to notices u/s. 142(1) of the Income Tax Act, issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment year. From perusal of records, it was found that the assessment was completed u/s 144 r.w.s. 147. Show cause notices u/s 274 r.w.s. 271F were issued. In response to that notices the appellant requested to keep penalty proceedings in abeyance till disposal of quantum appeal. Subsequently, he had opted for Vivad Se Vishwas Scheme-2020 for quantum addition made u/s 144 r.w.s. 147. However, this will not grant the appellant immunity from imposition of penalty u/s 271F. As per section 3 of Vivad Se Vishwas Act, 2020, the declarant would be provided immunity only for penalty levied on disputed tax, in case he opts for Vivad Se Vishwas scheme. In this case, as mentioned above, penalty was levied for a technical default i.e. filing ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or non-filing of Return of Income u/s. 139(1) of the Act. Even though the assessee is liable to file the Return of Income having taxable income. 5. Ld. Sr. D.R. Shri B.D. Gupta appearing for the Revenue submitted that the assessee neither adduced reasons for not filing reply to the statutory notices nor filed the Return of Income within the statutory time limit u/s. 139(1) of the Act. Further mere pendency of the quantum appeal has no relevance for the noncompliance of the notice and non-filing of the Return of Income. Therefore the levy of penalties u/s. 271(1)(b) and u/s. 271F by the Assessing Officer does not require any interference and the assessee is also not cooperative in conducting the above appeals. Therefor the same are liable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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