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2014 (2) TMI 512 - AT - Income TaxPenalty u/s 271(1)(b) of the Act – Held that:- The penalty in these cases has been levied for failure of the assessee to comply with the notice u/s. 142(1) of the Act - there was reasonable cause for the failure of the assessee to comply with the notice on the specified date - assessee has sought 45 days time to comply with the notice in this regard - it can be construed as reasonable cause for failure on the part of the assessee to comply with the notice. Section 273B provides that that no penalty shall be imposable on the person or the assessee, for any failure referred to in the provisions if he proves that there was reasonable cause for the failure - there was reasonable cause for the failure on the part of the assessee - Relying upon 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 - subsequent compliance in the assessment proceedings was considered as good compliance and the defaults committed earlier were ignored by the AO - thus, the penalty u/s. 271(1)(b) could not be levied – thus, the order of the CIT(A) set aside and the penalty set aside – Decided in favour of Assessee.
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