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2019 (1) TMI 1568 - AT - Income TaxPenalty u/s 271(1)(b) - non-compliance to the notice issued u/s 142(1) - HELD THAT:- Except in the case of Sunit Madhok, assessments in all the other assessee(s) have been framed u/s 153A r.w.s 143(3) which shows that proper representation was there before the assessing officer by the assessees and assessee(s) participated in the assessment proceedings to the satisfaction of Ld. Assessing Officer. In these facts where the assessment orders have not been framed ex-parte u/s 144 but have been framed u/s 143(3) than the penalty levied u/s 271(1)(b) has been held to be unjustified by Coordinate Bench Indore in the case of Pramila Ghodhe vs. DCIT [2017 (3) TMI 1756 - ITAT INDORE] Under same set of facts relating to penalty u/s 271(1)(b), similar view of deleting penalty has been taken by Coordinate Bench Indore in another case of Hemant Kumar Soni & Ors. Vs. DCIT [2017 (1) TMI 1581 - ITAT INDORE] Mr. Sunit Madhok remained non-compliant to the notice u/s 142(1) and and therefore assessments were framed ex-parte u/s 153A r.w.s. 144 - On perusal of the provisions of section 273B which provides that no penalty shall be imposable on the person or the assessee, as the case may be, for any failure referred to in the said provisions if he proves that there was a reasonable cause for the said failure, we find that for the A.Y. 2010-11 to A.Y. 2015-16 penalty should not have been levied on Mr. Sunit Madhok as he was having reasonable cause for not appearing before the assessing officer as the information required to be submitted, needed more time than the time granted by the assessing officer. We are thus inclined to hold that penalty of ₹ 10,000/- each for u/s 271(1)(b) for A.Y. 2010-11 to A.Y. 2015-16 needs to be deleted and accordingly, set aside the finding of both lower authorities and direct the revenues authorities to delete the penalty of ₹ 10,000/- for A.Y. 2010-11 to A.Y. 2015-16 Penalty u/s 271(1)(b) for A.Y. 2016-17 levied in the case of assessee, Mr. Sunit Madhok, we are inclined to hold that the penalty of ₹ 10,000/- has rightly been levied u/s 271B as the assessee had continuously defaulted and did not took part in the assessment proceedings. Thus, no interference is called for, in the finding of the Ld. CIT(A) in the case of assessee, Mr. Sunit Madhok for A.Y. 2016-17 and therefore, the appeal of the assessee is dismissed.
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