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2023 (7) TMI 556 - ITAT RAJKOTPenalty u/s 271(1)(b) - non-compliance of notices issued during assessment proceedings - HELD THAT:- The assessee has adduced evidences before us showing that during this period there were FIRs lodged against the Directors of the company and they had moved anticipatory bail application before the Sessions Court which was rejected and the assessee had moved to the High Court – both Hon’ble Bombay High Court and Hon’ble High Court of Gujarat. The assessee surely was deeply embroiled in litigations and, therefore, had plausible reasons for not complying with the notices, since there were criminal proceedings initiated against the directors of the assessee company who were trying to escape from being put behind the bars on account of the same Thus sufficient cause has been adduced by the assessee for non-compliance to the notices, we hold that there is no case for levying penalty u/s 271(1)(b) - The penalty levied u/s 271(1)(b) of the Act is, therefore, directed to be deleted. Decided in favour of assessee.
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