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2022 (9) TMI 712 - AT - Income TaxPenalty u/s 272A(1)(d) - non-compliance of the notice issued u/s 142 - Assessee argued that due to initial year of shifting towards digital and electronic mode, the mistake for not responding to the same is a bonafide mistake - HELD THAT:- Once the assessee has made the compliance though after some delay but it was well before the assessment order was framed and the penalty order dated 10.1.2022. Therefore, it is not a case of non-compliance on the part of the assessee to the notice issued under section 142(1) dated 18.11.2019 but the compliance was made belatedly. Assessee made the compliance and the assessment was framed after considering the reply and document filed by the assessee then it does not fall in the category of non-compliance by the assessee at all. Hence when the assessee finally complied with the notice and the AO has duly considered the reply and the documents filed by the assessee while framing the assessment, then the subsequent penalty levied by the AO is not justified. Even otherwise, when this is the year of changing the mode of assessment proceedings from physical to digital /electronically then the delay in compliance due to change in the mode of communication and proceedings is a bonafide reasons and not deliberate. Accordingly, the penalty levied by the Assessing Officer under section 272A(1)(d) is deleted. Appeal of the assessee is allowed.
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