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2021 (4) TMI 91 - AT - Income TaxPenalty u/s 271(1)(b) - assessment has been completed u/s 143(3) - Assessee has not complied to the statutory notice issued by the AO - ultimately the order has been passed u/s 143(3) - HELD THAT:- 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) should not be levied. Further, the Coordinate Bench of the Tribunal in the case of one of the group member SMT. NEETU NAYYAR AND SMT. MEENA NAYYAR VERSUS ACIT, CENTRAL CIRCLE-20 NEW DELHI [2020 (12) TMI 1221 - ITAT DELHI ] has also deleted the penalty levied by the AO u/s 271(1)(b) and sustained by the Ld. CIT(A) under identical circumstances. 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 it is not a fit case for levy of penalty u/s 271(1)(b) - Decided in favour of assessee.
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