2023 (9) TMI 793 - ITAT BANGALORE

Penalty u/s 272A(1)(d) - non-compliance of notice issued u/s 142(1) - HELD THAT:- Assessee has filed a manual letter dated 31.10.2019 requesting for some time to get details and then reply. However, the AO passed the assessment order on 23.11.2019 without disposing of the assessee’s letter dated 31.10.2019 either rejecting the said application or granting time.

We also found that ultimately assessment was completed by AO u/s 144 making addition which is cash deposit in various bank accounts. In our opinion, it is the duty of the AO to dispose of any communication/letters filed by the assessee before him at the time of assessment or giving finding about those letters in his order.

Being so, the inaction of the AO on the various letters filed by the assessee which enable the assessee to believe that the time to comply with the extension of time as prayed was granted. Therefore, in the circumstances, we are of the opinion that it cannot be said that assessee is guilty of contumacious or apparent conduct to comply with the notice u/s 142(1) of the Act. Thus, it is not a fit case for levy of penalty u/s 272A(1)(d) - Decided in favour of assessee.