Penalty order u/s 272A(1)(d)

To contest the ₹10,000 penalty, your appeal should focus on proving that your non-compliance was not a result of deliberate defiance or dishonesty but due to a reasonable cause (Section 273B). Emphasize your cooperation in subsequent proceedings and, if applicable, the lack of an opportunity to be heard. You should file your appeal in Form 35 within the 30-day statutory limit.

Grounds for appeal (Form 35, within 30 days of the order, before CIT(A)/NFAC):

1. Reasonable cause (Sec 273B), for example:

– the notice was not received (sent only to an old email or spam folder; no SMS)

– the date was too short

– illness or absence of the assessee or accountant

– the portal was down, with screenshots.

2. Subsequent compliance: if the reply was filed later and the assessment was completed on that basis, there is no prejudice to revenue. Penalty under Sec 272A is discretionary, not automatic (Hindustan Steel, SC 1972).

3. Single default: Rs 10,000 is levied per failure. Check the officer has not levied it for more defaults than notices actually issued, or for a notice issued after the time limit.

4. Procedural:

– penalty initiated without a Sec 274 show-cause notice or opportunity of hearing

– order passed beyond the Sec 275 limitation

– notice without DIN (CBDT Circular 19/2019)

– in faceless cases, non-compliance with Sec 144B procedure.

5. Bona fide belief: for example, that the notice was satisfied by an earlier submission.

Attach proof of every compliance made, and the email or server logs if non-receipt is claimed.