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2016 (2) TMI 1086 - ITAT INDOREImposition of penalty u/s 271(1)(b)- non complying with the notice u/s 143(2) - Held that:- The assessee failed to comply with the notices u/s 143(2) dated 07.10.2014, thereafter, the notices u/s 142(1) of the Act dated 21.10.2011, 09.11.2011 & 21.11.2011 and the AO has also issued the notice u/s 142(2A) of the Act dated 28.12.2011. The assessee did not comply to the notices, but the assessee has requested the AO to keep the penalty proceedings in abeyance till the decision of the ld. CIT(A), but the AO has imposed the penalty. AO has given several notices under various sections, but the penalty has been levied only for the assessment u/s 153A read with Section 143(3) of the Act and it was completed on 13.8.2012. As find that during the assessment proceedings, the penalty cannot be imposed for each default, but the penalty can be imposed only for the first default. Therefore, in these cases if the assessee failed to comply with the notices, the remedy with the AO was to frame “best judgement assessment” u/s 144 and not to impose penalty u/s 271(1)(b) again and again. Therefore, we modify the order of AO and CIT(A) and restrict the penalty for the first default of the assessee in not complying with the notice u/s 143(2). - Decided partly in favour of assessee.
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