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2019 (3) TMI 159 - AT - Income TaxPenalty u/s. 271(1)(b) - Non response to notice issued in assessment proceedings - Ex-parte order - Substantial addition was made in assessment - assessee received from accommodation entries for purchases - HELD THAT:- The notice sent has returned unserved. Hence, we proceeded to adjudicate the issue by hearing the Departmental Representative and perusing the records. Upon careful consideration, we note that in response to notices for reopening, the assessee has duly responded and submitted that the return filed earlier should be accepted as return filed pursuant to notice u/s.148. The reopening related to information that assessee has received accommodation entries for purchases. Since that assessee was not able to produce these parties pursuant to notices, the entire amount has been added. When the non response has already led to addition of the entire amount and the very purpose of the notice was to ask the assessee to produce the parties, in our considered opinion, penalty levied for non-response by the assessee in this regard will amount to double prejudice. In our considered opinion, the same is not sustainable. Hence, we levy of penalty. - Decided in favour of assessee.
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