TMI Blog2018 (9) TMI 778X X X X Extracts X X X X X X X X Extracts X X X X ..... n 148 is not valid and the same is deleted. As regards the penalty levied for non compliance of notice under section 142(1), we find that the assessee was not served with any of the notices issued by the AO due to the change of address and since the assessee has not filed any return of income, therefore, the AO was not having the present address of the assessee. Hence when the notice issued under section 142(1) was not served upon the assessee, and the AO has not conducted further enquiry regarding the current address of the assessee then in the facts and circumstances of the case that the assessee had already furnished the current address in the quantum proceedings, the reasons explained by the assessee are bonafide and reasonable. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee to the notices issued by the AO, accordingly, the AO framed the assessment under section 147 read with section 144 of the IT Act on 23rd January, 2015 and initiated penalty proceedings under section 271(1)(b) of the Act. The AO levied penalty of ₹ 10,000/- each for failure to comply with the notices issued under section 148 and 142(1) of the Act total amounting to ₹ 20,000/- vide order dated 31st July, 2015. 4. Being aggrieved, the assessee challenged the action of the AO before the ld. CIT (A) but could not succeed and the relevant findings of the ld CIT(A) are contained at Para 4.3 which is reproduced as under:- 4.3 I have carefully considered the material before me. I find that the AO imposed the penal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied that any person failed to comply with the notice under section 142(1) or under section 143(2) or directions issued under section 142(2A) of the Act. Therefore, no penalty can be levied under section 271(1)(b) for non compliance of notice issued under section 148. Hence, the ld. A/R has submitted that the penalty levied by the AO of ₹ 10,000/- for non compliance of notice under section 148 is not valid as the provisions of section 271(1)(b) cannot be invoked. He has referred to the provisions of section 271(1)(b) and submitted that it stipulates the levy of penalty on account of failure or non compliance of assessee to the notice under section 142(1) or section 143(2) or section 142(2A) of the Act. As regards the non compliance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case for levy of penalty for non compliance of notice under section 148 only but since the assessee has not complied with the notice issued under section 142(1) and other show cause notices, therefore, the AO has imposed the penalty of ₹ 20,000/-. She has relied upon the orders of the authorities below. 7. Recently, we have dealt with the levy of penalty u/s 271(1)(b) in similar set of facts in case of Chouth Mal Sharma in ITA No. 311/JP/2018 dated 05/07/2018 wherein penalty levied in similar circumstances was deleted. The relevant findings are reproduced as under: 4. We have considered the rival submissions as well as the relevant material on record. The assessee is not regularly assessed to tax. Since the assessee has sold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... find that the provisions of section 271(1)(b) cannot be invoked for non compliance of notice under section 148. The AO while passing the order under section 271(1)(b) has observed as under :- In such facts and circumstances I am satisfied that the assessee is liable to be penalized u/s 271(1)(b) of the I.T. Act, 1961 for non compliance of statutory notice issued u/s 148/142(1) and show cause notice issued of the I.T. Act, 1961 issued by this office on 31.05.2013, 30.04.2014. Thus it is clear that the AO has levied the penalty @ ₹ 10,000/- each for non compliance of notices under section 148/142(1) of the Act. As it is clear from the provisions of section 271(1)(b) that this provision can be invoked only for non compli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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