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2014 (12) TMI 1102 - ITAT DELHIPenalty u/s 271(1)(b) - Delay in filing return - Search and seizure of premises - Held that:- It is noticed from the impugned order that the assessee submitted before the ld. CIT(A) that adjournments were requested on the ground that search and seizure operation had taken place and it was not possible to furnish the necessary details as all the documents and computer hard discs etc. were seized/impounded at the time of search operations. The assessee further submitted that several requests were made to the AO to release certain documents, but to no avail. These findings have not been controverted by the ld. DR with any cogent evidence. From the above recording of the factual position obtaining in this case, it is crystal clear that the assessee was prevented by a reasonable cause in not complying with the directions of the AO which led to the imposition of penalty u/s 271(1)(b) of the Act. The cause pleaded by the assessee before the ld. CIT(A) which led to the commission of default u/s 271(1)(b) of the Act constituted a reasonable cause. The delay in filing the information/documents etc. called for by the AO would be naturally delayed when a person has been subjected to search and documents are with the Department. As the assessee proved a reasonable cause for failure to comply with the directions of the AO which culminated into the imposition of the instant penalty, we are of the considered opinion that this penalty cannot be upheld. We, therefore, set aside the impugned order and order for deletion of this penalty. - Decided in favour of assesse.
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