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2021 (4) TMI 90 - AT - Income TaxLevy of penalty u/s 271(1)(b) - no compliance of notices u/s 142(1) issued on 30.08.2018 & 05.10.2018 and the AO was forced to issue penalty notices on -07.09.2018 & 09.11.2018 apart from the prosecution notice on 19.11.2018 to elicit response from the appellant, which was first made on 07.12.2018 - HELD THAT:- Although the assessee in the instant case has not complied to the statutory notice issued by the AO on 5th October, 2016 fixing the case for hearing on 25th October, 2018 which is the basis for levy of penalty u/s 271(1)(b) of the Act, however, ultimately the order has been passed u/s 143(3). Coordinate Benches of the Tribunal in a number of decisions have held that where the assessment order was finally passed u/s 143(3) and not u/s 144 of the Act due to subsequent compliance during the assessment proceedings, that would be considered as good compliance and the defaults committed earlier should be ignored and taking a lenient view the penalty u/s 271(1)(b) of the I.T. Act 1961 should not be levied. Since the assessment in the instant case has ultimately been completed u/s 143(3) of the Act on the basis of various details filed by the assessee before the AO, therefore, considering the totality of the facts of the case and relying on the decision of the Tribunal in the case in SMT. NEETU NAYYAR AND SMT. MEENA NAYYAR VERSUS ACIT, CENTRAL CIRCLE-20 NEW DELHI [2020 (12) TMI 1221 - ITAT DELHI ] it is not a fit case for levy of penalty u/s 271(1)(b) of the Act - Decided in favour of assessee.
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