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2019 (11) TMI 1754 - ITAT MUMBAIPenalty u/s 271(1)(b) - assessee had failed to comply with the “SCN" that was issued to him u/s 274 r.w.s 271(1)(b), and had neither appeared before him nor furnished any written submissions - HELD THAT:- Assessee was never intimated about the fate of his letter dated 17.10.2016 (received by the A.O on 19.10.2016), insofar his request for adjourning the penalty proceedings under Sec. 274 r.w.s 271(1)(b) was concerned. In fact, it can safely be held that the assessee had remained divested of a sufficient opportunity of being heard before being saddled with the penalty u/s 271(1)(b). Apart therefrom, we find that subsequently the A.O had passed the assessment order u/s 143(3) and not under Sec. 144. Accordingly, it can safely be concluded that the subsequent compliances/furnishing of information by the assessee were held by the A.O to be good compliances and the defaults committed earlier were ignored by him. As observed by the ITAT, Delhi in the case of (i). Akhil Bhartiya Prathmik Shikshak Sangh Bhawan Trust [2007 (8) TMI 386 - ITAT DELHI-G] and (ii). Globus Infoco Limited [2016 (6) TMI 1304 - ITAT DELHI] the framing of assessment under Sec. 143(3), though not conclusively, but to some extent would rule out the circumstances justifying imposition of any penalty u/s 271(1)(b). Accordingly, in the backdrop of our aforesaid observations, we are unable to subscribe to the imposition of penalty under Sec. 271(1)(b) by the A.O, and finding the same to be unjustified, quash the same. Appeal of the assessee is allowed.
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