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2013 (4) TMI 179 - ITAT MUMBAIPenalty u/s.271(1)(b) - search and seizure action u/s.132 - non-compliance by filing the details on 20.10.2009 - Held that:- So far as the assessment orders in all respect of these assessees are concerned, there is not a single whisper by the A.O. that there was default on the part of the assessees to make compliance of any notices issued u/s.142(1) or 143(2) other than notice dt 14.10.09. In fact, on the perusal of the assessment order, it is found that the assessee's Chartered Accountant who was authorised to represent the assessee attended the assessment proceedings from time to time and filed the details called for by the A.O. The A.O. has also discussed the explanation filed by the assessee's in respect of certain transactions and has finally passed the assessment orders u/s.143(3) r.w.s. 153A. Thus it is interesting to note that in some of the assessment years the returns of income filed by these assessees have been accepted. In fact, on the careful perusal of the assessment order it is seen that nowhere any grievance is raised by the A.O. that the assessees or their Chartered Accountant were 'non-cooperative' or made any conscious defiance of noting dt. 14.10.09. Thus in fact, it is seen that the assessee's responded on all the dates as required by the A.O. Merely because on 20.10.2009 the Chartered Accountant of these assessees has not appeared or filed some details as asked by the A.O., the extreme step is taken to penalise these assessees by levying the penalty u/s.271(1)(b). As in Hindustan Steel Ltd. vs State of Orissa [1969 (8) TMI 31 - SUPREME COURT] wherein held that penalty will not ordinarily be imposed unless the party obliged, either acted deliberately in defiance of law or was guilty of conduct contumacious or dishonest, or acted in conscious disregard of its obligation. In the present cases, nowhere it is alleged that the conduct of the assessees or their Chartered Accountant in the proceedings was deliberate defiance of law on their part, thus no justification on the part of the A.O. to levy penalty on all these assessees for the non-compliance by filing the details on 20.10.2009 - in favour of assessee.
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