ITAT Mumbai dropped non-compliance of penalty of Actress Shilpa Shetty as compliance with notices was done prior to assessment order
Judiciary has repeatedly held that no penalty under Section 272A(1)(d) can be imposed when the assessment order is not finally passed under section 144 on ex parte basis. With this observation, often the judiciary deleted the penalty of ₹10,000 imposed under Section 272A(1)(d) for alleged non-compliance with a notice issued under Section 142(1).
One such judgement is by ITAT Mumbai in the case of a celebrity Shilpa Shetty Kundra Vs. DCIT, Mumbai [ITA No. 995/Mum/2024] has dropped the penalty levied under section 272A(1)(d). It observed that the reply is being filed in respect of all the earlier notices and has thus assisted the AO in completion of the assessment. Moreover the assessment order in the present case was passed u/s 143(3) and not u/s 144 of the Act, which means that AO had expressed his satisfaction with compliances made by the assessee.
The copy of the order is as under:
