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2017 (3) TMI 1756 - ITAT INDOREPenalty u/s. 271(1)(b) - non-compliance to notice u/s 142(1) - reasonable cause for non-appearance - assessment order was passed u/s 143(3) and not u/s. 144 - HELD THAT:- Assessment in this case was made under section 143(3) of the Act, which means that there was subsequent compliance to the notices issued by the authorities. We also noted that Ld. counsel also attended before the AO on 17.12.2015 and filed replies in all the cases including the case of the assessee. AO verbally agreed but counsel’s presence was not recorded. We are of the view that the assessee has a reasonable cause for non-appearance on that day. There is no justification for levying the penalty u/s 271(1)(b) of the Act. Secondly, in this matter, the assessments have been completed u/s 143(3) due to subsequent compliances in the assessment proceedings, which was considered as good compliances and default committed earlier were ignored. As decided in in the case of Akhil Bhartiya Prathmik Shikshak Sangh Bhawan Trust v. ADIT [2007 (8) TMI 386 - ITAT DELHI-G] wherein it was held that where the 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 assessment proceedings was considered as good compliance and defaults committed earlier were ignored by the Assessing Officer, therefore levy of penalty u/s. 271(1)(b) of the Act was not justified. - Decided in favour of assessee.
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