No penalty under Section 272A(1)(d) when Assessment Completed u/s 143(3)

Judiciary has repetitively 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 Bench in the case of Bhavana Modi Vs ITO in ITA No. 298/RPR/2024 dated 16.08.2024 wherein it has ruled as under:

“8. We have considered the rival submissions, perused the material available on record and case laws relied upon by the assessee. Admittedly, in the present case, the assessee failed to respond to certain notices of the Ld. AO, which were issued u/s 143(2) and 142(1) of the Act, however, in response, subsequent notices, the assessee has made necessary replies and accordingly assessment was completed u/s 143(3), therefore, respectfully, following the analogy drawn in the decision referred to (supra), we find that the penalty-imposed u/s 272A(1)(d) of the Bhavna Modi Act is not justifiable in the present case, as the Ld. AO himself has deemed to have condoned the absentee of assessee or his Authorized Representative on earlier occasions, subsequently the necessary information and evidences were furnished by the assessee to assist in the completion of the assessment and since assessment was completed u/s 143(3) of the Act, the penalty u/s 272A(1)(d) cannot be imposed. Under such facts and circumstances, considering the ratio of law followed in various judicial decision, we find it appropriate to set aside the order of Ld. CIT(A), and direct the Ld. AO to delete the penalty.”

 The copy of the order is as under:

1723797061-ITA 298 RPR 2024 Bhavna Modi True Copy