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2017 (2) TMI 1251 - AT - Income TaxPenalty u/s 271(1)(b) - unexplained bank account - Held that:- There was compliance by the assessee to each and every letter or notice issued by the A.O. Thus it cannot be said that the assessee did not comply with the notices/letters. Therefore, the penalty levied by the AO u/s 271(1)(b) was not justified. In the instant case the Ld.CIT(A) confirmed the penalty for the reason that the assessee did not give the consent form for obtaining the bank statement. In our opinion, when nothing was brought on record to substantiate that the alleged bank account actually belonged to the assessee, there was no possibility of furnishing the consent form, particularly when the assessee time and again denied that the alleged bank account belonged to him. Therefore, we are of the confirmed view that the sustenance of penalty u/s 271(1)(b) by the Ld.CIT(A) was not justified, particularly when the assessee complied with the notice/letters issued by the A.O. and it was not possible for him to give the consent form for obtaining the bank statement, as the same did not belong to him. We, therefore, considering the totality of the facts, delete the penalty u/s 271(1)(b) of the Act levied by the AO and sustained by the Ld.CIT(A). - Decided in favour of assessee.
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