TMI Blog2018 (6) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... here was failure to comply with the initial two notices given, considering that AO has completed assessment u/s. 143(3) and not u/s. 144, the subsequent compliance can be considered as ‘good compliance’ for the earlier notices given. The initial non-compliance may not result in levy of penalty, as assessee has bonafide reasons for non-compliance. AO issued only one notice and levied two pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings, the Assessing Officer (AO) has issued notices u/s. 143(2) of the Act on 04-07-2006 and also on 21-08-2006, to which assessee has not complied. Thereafter, AO has issued further notices and after due compliance, the assessment has been completed u/s. 143(3) of the Act by the AO. However, for the non-compliance on 24-07- 2006 and 21-08-2006, AO initiated penalty proceedings u/s. 271(1)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quent compliance and assessment u/s. 143(3) can be considered as good compliance and the defaults committed earlier were ignored by the AO. He relied on the Co-ordinate Bench decisions in the case of Gloubs Infocom Limited Vs. DCIT in ITA No. 738/Del/2014, dt. 29-06- 2016 and Akhil Bhartiya Prathmik Shikshak Sangh Bhawan Trust Vs. ACIT [115 TTJ 419] (Delhi). 5. Ld.DR, however, supported the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd the rival submissions and perused the material on record. We find that the instant appeal is squarely covered by the decision of the Co-ordinate Bench of IT AT Delhi in the case of Akhil Bhartiya Prathmik Shikshak Sangh Bhawan trust vs ACIT 5 DTR 429 (Delhi Tribunal) wherein the Coordinate Bench in paras 2.4 and 2.5 has held as under:- 2.4 Coming to the issue of recording of satisfaction, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing the same, we are of the opinion that the initial non-compliance may not result in levy of penalty, as assessee has bonafide reasons for non-compliance. Accordingly, penalty levied is hereby cancelled. 7. It is to be observed that AO issued only one notice and levied two penalties for non-compliance on two dates. Technically speaking, each non-compliance requires separate show-cause noti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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