SNG Microns Private Limited vs. National Faceless Assessment Centre

Parties Involved

Facts Summary

The case of the assessee, SNG Microns Private Limited, was selected for complete scrutiny under the Centralized Scrutiny Assessment Scheme (CASS). A notice under section 143(2) of the Income Tax Act was issued on 25.09.2018, and the assessee filed an online submission on 11.10.2018. However, the assessee did not receive any further notice or communication except for the assessment order and demand notice. The assessment order dated 11.12.2019 mentioned that a notice under section 142(1) of the Act was issued on 09.10.2019, almost 12 months after the initial notice under section 142(1) and 24 months after the filing of the return of income. Show cause notices were issued on 08.11.2019 and 03.12.2019, and the assessment order was eventually passed on 11.12.2019. The Assessing Officer claimed that all notices were sent to the assessee through its registered email via the income tax portal. However, the assessee failed to comply with the notices, leading to a penalty notice under section 272A(1)(d) of the Act issued on 18.11.2019 and again on 06.08.2021 for non-compliance with the notices under sections 143(2) and 142(1) of the Act. Subsequently, a penalty of Rs. 20,000/- was levied on 06.09.2021 by passing a penalty order under section 272A(1)(d) of the Act. The assessee filed an appeal before the Commissioner of Income Tax (Appeals), which was dismissed. Dissatisfied with the order, the assessee appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the penalty order under section 272A(1)(d) of the Act was rightly imposed for non-compliance with the notices issued under sections 143(2) and 142(1) of the Act.

Judgment Outcome

Decided in favour of Assessee.

Similar Judgements

• Mr. Dhananjay Mahadeo Sonsurkar v/s. Income Tax Officer/Assessment Unit, ITO/CIT(A)

  Mumbai Bench benchAY 2019-20Allowed

• Manishkumar Ramlakhan Agrawal vs. Income Tax Officer

  Ahmedabad bench

• M/s. Palliyakkal Service Co-op Bank Ltd. vs. The Income Tax Officer

  Cochin bench

• Nitin Ramchandra Kalambe Vs. ITO, Ward-2(2)

  Mumbai benchAY 2018-19Allowed

• Jayshree Nilam Patel vs. Income Tax Officer

  Ahmedabad bench

• Krishna Chandra Das vs. ITO, Ward-25(1), Kolkata

  Kolkata Bench benchAY 2019-20Allowed