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2016 (9) TMI 510 - AT - Income TaxPenalty u/s 271(1)(b) - non comply with notice u/s 142(1) - Held that:- The assessee was given show cause notice u/s 142(1) was issued alongwith detailed questionnaire on 19.11.2012, requiring the assessee to furnish in writing some specified information on or before 29.11.2012. On the said date, the assessee did not attend the proceedings nor filed the request of adjournment. The AO has given show cause notice on 01.02.2013, as to why the penalty of ₹ 20,000/- should not be levied upon the assessee for non-compliance of statutory notice u/s 142(1) of the Income-tax Act, 1961. As per the assessee’s version before the appellate authority and also in the written submission that on the said date the assessee’s counsel was not available as he had gone to I.T.A.T., Indore Bench, Indore, for hearing and moreover, the details were still awaited to be taken out from the records, which were to be submitted before the AO and which was to be received from 50 District Offices all over Madhya Pradesh. The Officer incharge Mr. Lalit Chaturvedi had verbally informed the AO and requested for adjournment. Thus, it is seen that the counsel of the assessee was preoccupied with hearing before Tribunal, hence, the assessee could not appear before the AO on specified date. Further, the information was to be collected from 50 locations spread all over M.P. State, hence, it could not be produced on the stipulated date. It is also noticed that in subsequent hearing the assessee has furnished all information as required and assessment was to be framed u/s 143(3) of the Act. Therefore, following the principle enunciated in the decision of Apex Court in the case of Hindustan Steel Limited vs. State of Orissa, [1969 (8) TMI 31 - SUPREME COURT], we are of the view that there was no deliberate defiance of law or was guilty of conduct contumacious or dishonest or acted in conscious disregard of its obligation. In the light of these facts and circumstances, the failure of the assessee to comply with such notice cannot be said to be a default which may justify the levy of penalty u/s 271(1)(b) of the Act. - Decided in favour of assessee
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