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2024 (3) TMI 521 - ITAT CHANDIGARHLevy of penalty u/s 272A(1)(d) - non compliance to the notice(s) issued during the course of assessment proceedings - assessee was asked to comply within a period of two hours and that to on a day which was a public holiday - as submitted that in the said penalty notice, there is no mention as to which specific notice issued by the AO during the course of assessment proceedings - HELD THAT:- There were infact three notices which were issued on the same date whereby the assessee was asked to comply within a period of two hours and that to on a day which was a public holiday. Given that AO has to complete the assessment proceedings within the limitation period involving number of cases, the Assessing officer may be working on a public holiday beyond the call of duty and calling for the necessary information/documentation and thus, there is an expectation from the assessees to co-operate and adhere to the notices asking for the necessary information, documentation in order to enable the Assessing officer to complete the assessment proceedings. Expectation must meet the test of reasonableness and the assessee be provided reasonable time to respond to the various notices. In the instant case, it is manifestly clear that the AO for reasons best known to him has issued three notices one after the another on the day which was a public holiday and asking the assessee to respond to the said notices within period of two hours which is clearly not reasonable and in any case, cannot be a basis to press charges as far as the deliberate non-compliance on the part of the assessee. Considering the fact that substantial compliances have been made by the assessee and the assessment has been completed u/s 143(3) of the Act, we find that there is no justifiable basis for levy of penalty u/s 272A(1)(d) of the Act. The penalty so levied is hereby directed to be directed. Appeal of the assessee is allowed.
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