TMI Blog2014 (12) TMI 1102X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to why penalty be not imposed under this section. A reply was submitted to the effect that all the staff members and the concerned persons were occupied in finalization of books of account for the Financial year 2010-11 as income tax return for AY 2011-12 was to be filed on 30.09.2011. The assessee further stated that the delay on the part of the assessee in filing the return/documents was unintentional. The assessee further requested for grant of time of 15/20 days for doing the needful. Not convinced with the assessee s submissions, the AO imposed penalty u/s 271(1)(b) amounting to 10,000/-. The ld. CIT(A) upheld the penalty. 4. We have heard the rival submissions and perused the relevant material on record. It is noticed from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rch 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. 6. The facts and circumstances in all other cases are admittedly, mutatis mutandis similar to those of Shalini Goyal, which has been discussed, supra. Following the view taken hereinabove, we order for the deletion of the penalty in other cases as well. 7. In the result, all the appeals are allowed. The order pronounced in the open court on 20.06.2014. - - TaxTMI - TMITax - Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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