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2023 (8) TMI 1258 - ITAT DELHIPenalty u/s 271(1)(b) - Manner of service of notice - assessee has not complied with the notices issued by the A.O. u/s 148/142(1) - HELD THAT:- In the instance case, the first notice has been admittedly ‘not served’ and the notice was returned with remark ‘No such person is residing in this address’. A.O. considering the fact that the case of the assessee is going to be time barred by limitation and has to be completed before 31st January, 2014 opted for issuing notice u/s 142(1) of the Act by way of substitute service of Affixture on 14/01/2104 for compliance of the same on 24/01/2014 and on the very same day i.e. on 24/01/2014 the A.O. passed the assessment order u/s 144/147. Apart from the same, there is no mentioning of reasons by the A.O. in the assessment order as to why the Notice has to be served through affixture and the A.O. has not mentioned anything regarding efforts of ‘due and reasonable diligence to serve the notice’ on the assessee as required under rule 17 of order V of the CPC, thus the Service of Notice by way of affixture on the Assessee cannot be construed as sufficient Service of Notice. Therefore, in our considered opinion, the A.O. has committed an error in initiating penalty proceedings - Grounds of Appeal of the assessee are allowed.
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