No penalty under Section 272A(1)(d) when Assessment Completed u/s 143(3)
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 Delhi Bench in the matter of DLF Commercial Enterprises v. Assistant Commissioner of Incometax, Circle-52(1), New Delhi, [2021] 131 taxmann.com 305 (Delhi – Trib.). It has been held in this case that where assessee did not comply with notice under section 142(1), however, assessment order was passed under section 143(3) and not under section 144, it meant that Assessing Officer had expressed satisfaction with compliances made by assessee, therefore levy of penalty under section 271(1)(b) was not justified and had to be cancelled.
The copy of the order is as under:
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