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2021 (3) TMI 5 - AT - Income TaxPenalty u/s. 271(1)(b) - there is a default and non- compliance on the part of the assessee to the notice issued u/s. 142(1) - unexplained source of deposit made in the bank account - AO as also stated that the assessee has not made compliance to the show cause notice issued u/s. 271(1)(b) - HELD THAT:- That cannot be a ground for imposition of penalty u/s. 271(1)(b) of the Act. In the quantum appeal, the ld. CIT(A) vide its order dated 22.09.2020 has deleted the addition made by the Assessing Officer and therefore, it amounts to acceptance of the explanation of the assessee filed during the assessment proceedings. Hence, in the facts and circumstances of the case and in view of Section 273B of the Act when the assessee has finally complied with the notice issued by the Assessing Officer the penalty is not imposable as the explanation filed by the assessee was finally found to be correct and accepted in the quantum appeal. Consequently the penalty levied u/s. 271(1)(b) of the Act is deleted. - Decided in favour of assessee.
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