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2023 (2) TMI 1089 - AT - Income TaxValidity of penalty levied u/s 271(1)(b) - non-compliance of notice u/s 142(1) - HELD THAT:- CIT(A) while confirming the action of Assessing Officer held that no submission is filed before him despite affording reasonable opportunity. As in Akhil Bhartiya Prathmik Shmshak Sangh Bhawan Trust [2007 (8) TMI 386 - ITAT DELHI-G] held that where assessee had not complied with notice u/s 142(1) but assessment order was passed u/s 143(3) and not u/s 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 u/s 271(1)(b) was not justified. Similar view was followed in a series of decisions as has been relied by assessee in his submission. Thus, considering the fact that assessment in the present case was completed u/s 153A/143(3) in accepting return of income, find that it was sufficient compliance, merely because the assessee could not make compliance for single hearing due to some bonafide reason on the penalty u/s 271(1)(b) - AO in the assessment order recorded that the assessee made compliance of notice at the same time he has levied penalty for default of the same notice. Even otherwise, if it is considered that the assessing officer might have committed mistake while recording various dates of notice, subsequent compliance is sufficient and no penalty is sustainable in the present case - we direct the AO to delete the impugned penalty. In the result, ground of appeal raised by assessee is allowed.
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