Statutory notice issued under section 142(1) r.w.s. 129 of the Income Tax Act

IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD – BENCH ‘B’
 

BEFORE SHRI RAJPAL YADAV, VICE-PRESIDENT
AND
SHRI AMARJIT SINGH, ACCOUNTANT MEMBER

ITA No.141/Ahd/2019

Asstt. Year: 2015-16

SPS Tube Industries
Plot No.518, Phase-III
Kathwada, Nr.GVMMSA Vasahat
Odhav, Ahmedabad.
PAN : AAXFS 4891 A

Appellant

vs

ACIT, Cir.3(3)
Ahmedabad.

Respondent

Assessee by : Written Submissions
Revenue by : Shri Rajdeep Singh, Sr.DR

Date of Hearing : 15/07/2021

Date of Pronouncement: 02 /08/2021

O R D E R

Assessee is in appeal against order of the ld.CIT(A)-3, Ahmedabad dated 31.12.2018 passed under section 271(1)(b) of the Income Tax Act, 1961.

2. Brief facts of the case are that the assessee is engaged in business of manufacturing of SS pipes and tubes. It has e-filed return of income on 30.9.2015 declaring income at Rs.1,24,99,840/-. The return was processed under section 143(1) of the Act an thereafter selected for scrutiny assessment. The assessment was completed under section 143(3) by accepting the returned income. Thereafter, the ld.AO initiated penalty proceedings under section 271(1)(b) for non-compliance of notice issued under section 142(1) dated 18.9.2017. Accordingly, a notice under section 274 read with section 271(1)(b) of the Act was issued to the assessee, however, the assessee has not furnished any explanation for non-compliance of notice. The ld.AO accordingly imposed penalty of Rs.10,000/- under section 271(1)(b) of the Act. The same was challenged before the first appellate authority, but did not succeed, hence, the assessee before the Tribunal.

3. We have considered rival submissions and gone through the orders of the Revenue authorities. The assessee was imposed with penalty under section 271(1)(b) of the Act of Rs.10,000/- on the ground he has not complied with statutory notice issued under section 142(1) r.w.s. 129 of the Act.

4. Therefore, in the case on hand, we are satisfied that the assessee had reasonable causes for non-compliance of a particular notice, which does not warrant imposition of penalty.

5. In the result, appeal of the assessee is allowed.
Order pronounced in the Court on 2nd July, 2021.

Please find attached the enclosed file for the full judgement