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2017 (8) TMI 1339 - AT - Income TaxPenalty levied u/s 271(l)(b)- non-compliance of statutory notices - Held that:- We find that in the case of Jawala Prashad Aggarwal, which is also one of the cases of the MDLR Group, the Tribunal has deleted the penalty u/s 271(1)(b) of the Act wherein also due to non-compliance of statutory notices on two occasions penalty under section 271(1)(b) Act was levied by the Assessing Officer in each of the assessment years from 2002-03 to assessment year 2008-09. In the said case also the assessee submitted reasons of non- compliance as more than 303 group assessments conducted during short span of five months and therefore it was difficult to comply with all the notices on the appointed dates. Also it was submitted that main controlling person of the group, Sh. Gopal Goyal was detained in judicial custody since August, 2012 and he was entrusted with all the decisions and was aware of the tax matter and documents and therefore there was a delay in collecting information and consequently making compliances. Tribunal deleted the penalty mainly on the ground that facts and circumstances of the case constituted reasonable cause being under the scope and ambit of sections 273B of the Act. The Tribunal also held that that in view of the demand in quantum proceeding reduced to nil, the alleged breach or non-compliance is merely technical and venial in nature and therefore penalty should not be levied for such venial breach. In the instant case also the facts and circumstances are identical and thus, respectfully following the finding of the Tribunal (supra), levy of penalty under section 271(1)(b) of the Act is directed to be deleted. - Decided in favour of assessee.
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