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2019 (8) TMI 156 - AT - Income TaxLevy of penalty u/s 271(1)(b) - failure to comply with notices u/s 142(1)/143(2) - notices to the assessee at the old address - HELD THAT:- Prior to completion of the assessment for assessment year under appeal, assessee had already reported new address to the Revenue Department. However, the AO for the reasons best known to him have sent the notices to the assessee at the old address. No attempt has been made to serve assessee at the new address. Therefore, there could not be any reason to believe that assessee had defaulted in making compliance to the notices. CIT(A) noted that on 05.09.2007 Counsel for assessee appeared before AO but no new address has been intimated. However, in the Income tax return filed for subsequent AY 2006-07, assessee had already reported new address to the Department. There is thus, no default on the part of the assessee to comply with the notices u/s 142(1)/143(2) of the Act. Further, AO has recorded several dates on which notices have been issued to the assessee, but it is not mentioned in the penalty order as to for which default of notice penalty has been levied. In the absence of any specific charge against the assessee, it is difficult to accept that assessee would default to make any reply before the authorities below. The quantum matter is pending before the CIT(A) as per directions of the Tribunal. Considering all assessee had a reasonable cause for failure to comply with the notices. Therefore, penalty is not leviable in the matter. - Decided in favour of assessee.
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