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2016 (10) TMI 315 - AT - Income TaxPenalty u/s. 271(1)(b) - assessees have not complied with the notices issued u/s.142(1) - assessments made for several assessment years u/s.153A - Held that:- We find from the assessment orders in this group of appeals that assessments were made for several assessment years u/s.153A of the Act. The Assessing Officer in all these cases has passed the orders u/s. 143(3)/153A of the Act. In the assessment order of J.S. Walia, in para 2 the Assessing Officer has mentioned that “the authorized representative of the assessee attended by time to time and furnished written submissions with supporting documents which were perused and placed on the record. Seized books of accounts, documents and material were duly confronted to the assessee in the course of assessment proceedings. Regular books of accounts were produced and checked with the seized documents.” This shows that the assessee has made full compliance of the notices issued u/s. 142(1) though with some delay but this is not the case of noncompliance of notices. Relying upon the case of Akhil Bhartiya Prathmik Shikshak Sangh Bhawan Trust vs. ITO [2007 (8) TMI 386 - ITAT DELHI-G ] has held that “in the absence of recording satisfaction, mere initiation of penalty will not confer jurisdiction on the Assessing Officer to levy the penalty”. It was further held that assessment having made u/s 143(3) means that subsequent compliance in the assessment proceedings was considered as good compliance and defaults committed earlier were condoned hence penalty cannot be levied u/s. 271(1)(b). We have gone through the orders of the learned CIT(A) and find that the learned CIT(A) has held that though the notice u/s 142 was not received by the assessee but he has participated in the proceedings. Therefore, the assessee has reasonable cause for noncompliance and as such the penalty cannot be levied. Moreover, the penalty has been levied without issuing show cause notice i.e. without giving specific opportunity as contemplated u/s 274 of the Act. Thus penalties deleted - Decided in favour of assessee
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