2010 (8) TMI 1126

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..... a, This is an appeal filed by the assessee against the order of CIT(A) dated 30.12.2009 for the AY 2005-06, in the matter of penalty imposed u/s 271(1)(b) of the IT Act. 2. Rival contentions have been heard and record perused. From the record, we found that penalty has been imposed by the AO for seven non-compliances during the assessment proceedings. By the impugned order, CIT(A) deleted the .....

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..... ce on some of the occasions, the AO noticed that formal notice will be issued in January, 2007 after completion of time barring assessments. With regard to notice dated 28.2.2007 issued by the AO u/s 143(2), we found that it was served on the assessee on 1.3.2007 fixing the date for 5.3.2007. The partner accepting the verbal adjournment assumed that notice has been inadvertently issued and did not .....

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..... had been made u/s 143(2) and not u/s 144, it means that subsequent compliance in the assessment proceedings was considered as good compliance and the defaults committed earlier were ignored by the AO, hence penalty u/s 271(1)(b) could not be levied. In the instant case also, assessment was completed u/s 143(3) and not u/s 144, according proposition stated by the ITAT in the aforementioned matter .....

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