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2014 (2) TMI 577 - AT - Income TaxPenalty u/s 271(1)(b) of the Act – Non-compliance of Notice u/s 143(2) of the Act - Held that:-The show cause notice does not mention about the non-compliance of notice on which penalty has been levied – thus, assumption of jurisdiction is not proper - the assessee was not given proper opportunity as a mandatory requirement – the assessment were completed u/s. 143(3) of the I.T. Act, it does mean the subsequent compliance in the assessment proceedings was considered as good compliance – Relying upon Akhil Bhartiya Prathmik Shikshak Sangh Bhawan Trust vs. Assistant Director of Income Tax [2007 (8) TMI 386 - ITAT DELHI-G ] and Hindustan Steel vs. State of Orissa [1969 (8) TMI 31 - SUPREME Court] - An order imposing penalty for failure to carry out a statutory obligation is the result of a quasi-criminal proceedings, and penalty will not ordinarily be imposed unless the party obliged either acted deliberately in defiance of law or was guilty of conduct contumacious or dishonest, or acted in conscious disregard of its obligation – order of the CIT(A) set aside and the levy of penalty set aside – Decided in favour of Assessee.
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