The Income Tax Appellate Tribunal (ITAT), Jaipur bench refused the penalty order on the basis of the notice asking that was not given to the taxpayer because of the address change.
On the grounds of the data in possession of the department and post to recording the causes to believe the assessment would be reopened u/s 147, and notice under section 148 of the Income Tax Act, 1961 was issued on 17.03.2015 which was furnished on the taxpayer, Ms. Asha Yadav, through postal authorities. but, that was not provided to the taxpayer.
The assessing officer finished towards the law of section 144 of the income tax act 1961 on the grounds of the material available on the record. After that, towards filing the wrong particulars of the income and concealing his income Penalty proceeding U/s 271(1)(c) is initiated. Notice U/s 271(1)(c) read with section Under section 142(1) of the Income Tax Act, 1961, penalty proceedings U/s 271(1)(b) of the IT Act, 1961 is initiated and notice 271(1)(b) read with section 274 was given.
The department mentioned that when the taxpayer shall not follow the law notices, ex-parte assessment order under section 144 of the income tax act could be passed by the competent authority and moreover found that in the absence of enough elaborations by the taxpayers who losses to discharge its load.
Canceling the penalty order, the Tribunal bench, Dr. S. Seethalakshmi, JM & Shri Rathod Kamlesh Jayantbhai, AM has seen that “in our considered opinion, that the assessee was served with the notices issued by the AO which was not known by the assessee due to the change of addresses. Further considering the facts and circumstances of the case that the assessee had already furnished the current address in his letter dated 13.10.2021, the reasons explained by the assessee were bonafide and reasonable before the CIT (A) and which was not taken in consideration.”
