75th Founding Day Lecture Meeting on “India@2030” Know More

April 2008

S. 271(1)(b) : Penalty for non-compliance with notices deleted, where inadequate notice given

By Ashok Dhere, Jagdish D. Shah, Chartered Accountants
Reading Time 2 mins
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4) Boon Industries v. ITO


ITAT ‘K’ Bench, Mumbai

Before O. K. Narayanan (AM) and

Sushma Chowla (JM)

ITA No. 6736 and 6737/Mum./2006

A.Ys. : 1998-99 & 1999-2000. Decided on : 27-11-2007

Counsel for assessee/revenue :

Prakash Jhunjhunwala/Malathi Sridharan

S. 271(1)(b) read with S. 142(1) and S. 143(2) of the
Income-tax Act, 1961 — Penalty for non-compliance with notices issued — On the
facts held that penalty cannot be imposed.

Per O. K. Narayanan :

Held :

The penalty of Rs.0.2 lac each imposed for the years under
appeal for non-compliance of statutory notices issued u/s.142(1) and S. 143(2)
were deleted by the Tribunal. According to it, it cannot be said that the
assessee was indifferent in the matter and did not co-operate with the assessing
authorities, when it complied with the requirements twelve times out of the
sixteen times. It further held that the non-compliance cannot be said to be
willful when the time given to the assessee to attend before the AO was only
four to six days. According to it, the failure of the assessee to sought
adjournment or inform the AO was not that much material in the light of the
conduct of the assessee by appearing before the AO for not less than twelve
times.

 

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