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2015 (12) TMI 185 - AT - Income TaxPenalty under section 272A (1) (c) - non-compliance of the notice u/s 131 - Held that:- Even if a minimum penalty is prescribed, the authority competent to impose penalty will be justified in refusing to impose penalty where there is a technical or venial breach of the provisions of the taxing statute. In the present case, when the assessee is able to establish that the account books were produced during assessment proceedings, however with some delay, then it is a technical/venial breach of the provisions of the Act and penalty cannot be held as correct and justified. It is also relevant to note that undisputedly Shri Mahendra Nahata, Chairman of the appellant company in his statement recorded on 13.12.2007 stated that "The company keeps back up data, which will be compiled to prepare the accounts for the years for which the department is unable to a access the accounts in the server." This also shows cooperation and obedience on the part of the assessee company. Hence, penalty can be imposed upon the assessee on the allegation of non-compliance of the notice u/s 131 of the Act and the Assessing Officer was not correct in passing penalty order imposing penalty of ₹ 10,000 u/s 272A(1)(c) of the Act. In this situation, we are inclined to hold that the CIT(A) was not justified in confirming the penalty and hence impugned first appellate order cannot be held as sustainable and thus we demolish the same. - Decided in favour of assessee.
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