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2021 (5) TMI 826 - AT - Income TaxPenalty u/s.271(1)(b) - no compliance to notice u/s 142(1) - HELD THAT:- Perusal of assessment order reveals that there is no reference of alleged notice dated 13.06.2016. No addition for non-compliance of information or any evidence were made by AO. The while passing the assessment order. Rather, the assessee itself suo moto offered the action which was debited on account of interest on TDS. At first appellate stage, the appeal of the assessee was dismissed in non-prosecution for non-compliance of notices. Keeping in view the smallness of issue and again in restoring the matter to the file of ld.CIT(A), it may came up on hearing after long time. There is a reference of conflicting in dates in order of penalty under section 271(1)(b) of the Act. The AO levied the penalty for non-compliance of notice dated 13.06.2016, however, there is no reference of such notice for the assessment order, therefore, the order in levying penalty under section 271(1)(b) is invalid. Even if, we assume that there was a non-compliance of notice dated 13.06.2016, by intentionally or unintentionally, the assessee ultimately in response to notice dated 11.08.2016 made honest compliance therefore, if any non-compliance committed on earlier occasions deserves to be ignored, when assessee itself offered additional income, which was debited on account of interest on TDS and the same was accepted by AO. And no other issue was identified nor was any other addition made in the assessment order. Considering the aforesaid factual documents, we are of the view that the assessee has made a bonafide compliance, therefore, no penalty under section 271(1)(b) of the Act. In the result the grounds of appeal raised by the assessee are allowed.
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