Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 1714 - AT - Income TaxPenalty u/s 271(1)(b) - non-compliance of notice u/s 142(1) - Held that:- As seen in Akhil Bhartiya Prathmik Shikshak Sangh Bhawan Trust vs. Assistant Director of Income Tax, (2007 (8) TMI 386 - ITAT DELHI-G ) assessment have been made under section 143(3) and not under section 144 of the IT Act. It means that subsequent compliance in the assessment proceedings was considered as good compliance and the defaults committed earlier were ignoring by the AO. Hence, the penalty u/s. 271(1)(b) could not be levied. We find considerable cogency in the Ld. Counsel of the assessee’s submission that the show cause notice does not mention about the noncompliance of notice on which penalty has been levied. Hence, assumption of jurisdiction is not proper. We further find that in these cases the AO has asked explanation of questions and assessee was given only 7 days time. In these circumstances, in our considered opinion, the assessee was not given proper opportunity - Decided in favour of assessee
|