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2021 (7) TMI 412 - AT - Income TaxPenalty levied u/s 271(1)(b) - Reopening of assessment u/s 147 to assess the income on account of deposits made in the saving bank account - failure to comply with the notices issued by the A.O u/s 142(1) - HELD THAT:- Though the AO has issued notice u/s 142(1) as well as the show cause notice u/s 271(1)(b) and u/s 144 of the Act however, all these notices were remained unserved due to the reason that the assessee was not available at the given address. This fact of non availability of the assessee is not in dispute as the assessee already sold this residential house and shifted to Noida. It is a case of reopening of the assessment for assessing the deposits made in the bank account of the assessee as the assessee was not having any other source of income to be declared in the return of income. Therefore, the non-compliance on the part of the assessee is due to the reason of not receiving the notice issued by the A.O. Once the assessee has settled his dispute arising from the quantum proceedings under Vivad se Vishwas Scheme, 2020 and explained the reasonable cause for default or failure in compliance of the notice issued by the A.O u/s 142(1) then the case of the assessee falls u/s 273B of the Income Tax Act. Accordingly, in the facts and circumstances of the case when the assessee has explained a reasonable cause for failure to comply with the notices issued by the A.O u/s 142(1) the penalty levied u/s 271(1)(b) of the Act is not sustainable and liable to be quashed - Decided in favour of assesee.
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