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2022 (6) TMI 238 - ITAT VARANASIPenalty u/s 271(1)(c) - non-compliance of notice issued by AO under Section 142(1) during the course of reassessment proceedings - CIT-A held reopening of the assessment u/s 147/148 was based on wrong and incorrect reasons recorded, and secondly that the reassessment order dated 27.12.2017 passed by the AO was without jurisdiction and void ab-initio - HELD THAT:- Once the quantum re-assessment itself is held to be void ab-inito and without jurisdiction , nothing survives so far as non compliances of notices u/s 142(1) of the 1961 Act, as the proceedings itself was vitiated , held to be bad in law and quashed , as it is also held by ld. CIT(A), NFAC, New Delhi , that reopening of the assessment was done based on wrong and incorrect reasons recorded. Thus, if the quantum proceedings itself are declared to be bad in law and quashed , then any non compliance on the part of the assessee to respond to notice issued u/s 142(1) during such proceedings which are held to be void ab inito and proceedings without jurisdiction , will not give rise to any cause of action for validly initiating penalty proceedings u/s 271(1)(b) for non compliance of notice issued u/s 142(1) during such proceedings , and hence consequently penalty proceedings itself are to be held to be bad in law, liable to be quashed. Thus, we order deletion of penalty levied by the AO u/s 271(1)(b) - Appeal of assessee allowed.
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