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2023 (2) TMI 407 - AT - Income TaxPenalty levied u/s 271(1)(b) and / or 272A(1)(d) - assessee failed to comply notice under Section 142(1) - HELD THAT:- The penalty could be imposed for first default and not for each and every notices which remained noncomplied. Before us assessee vehemently submitted that in February, 2021, it was a nationwide severe pandemic of Covid and everyone was taking proper care and caution, due to which the assessee could not make compliance of notice dated 03/02/2021. We find convincing force in the submission of ld. AR of the assessee that corresponding period during which the assessee could not make compliance of notice, issued by AO was a severe Covid-19 pandemic period. However, thereafter the assessee made full compliance of various notices issued by AO and ultimately the explanation or submission furnished by assessee was accepted and passed assessment order. As decided in Akhil Bhartiya Prathmik Shmshak Sangh Bhawan Trust [2007 (8) TMI 386 - ITAT DELHI-G] held that where assessee had not complied with notice under Section 142(1) but assessment order was passed under Section 143(3) and not under Section 144, that meant that subsequent compliance in the assessment proceedings was considered as a good compliance and defaults committed earlier were ignored by Assessing Officer and, therefore, penalty under Section 271(1)(b) was not justified - thus direct the Assessing Officer to delete the impugned penalty. In the result, ground of appeal raised by assessee is allowed.
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