TMI Blog2021 (5) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... the file of ld.CIT(A), it may came up on hearing after long time. There is a reference of conflicting in dates in order of penalty under section 271(1)(b) of the Act. The AO levied the penalty for non-compliance of notice dated 13.06.2016, however, there is no reference of such notice for the assessment order, therefore, the order in levying penalty under section 271(1)(b) is invalid. Even if, we assume that there was a non-compliance of notice dated 13.06.2016, by intentionally or unintentionally, the assessee ultimately in response to notice dated 11.08.2016 made honest compliance therefore, if any non-compliance committed on earlier occasions deserves to be ignored, when assessee itself offered additional income, which was debited on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts of the case are that during the assessment proceedings for assessment year (AY) 2014-15, the Assessing Officer (AO) issued notice under section 142(1) of the Act on 11.08.2016 along with certain questionnaires. The AO noted that the assessee has debited an amount of ₹ 73,388/- on account of interest on TDS, the amount debited was not related to the business expenses and were penal in nature and thus not allowable as business expenses. The assessee appeared through his representative and suo moto offered ₹ 73,388/-, on account of interest on TDS. Therefore, the assessee suo moto offered the amount for taxation. No other addition except the suo moto income offered by assessee was made in the assessment order passed under se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case before ld CIT(A). 4. On merit, the learned AR of the assessee submits that in the assessment order, the AO has mentioned that notice under section 142(1) of the Act was issued on 11.08.2016. The assessee complied with the questionnaires issued by the AO. The AO suo moto offered the income of ₹ 73,388/-, and it was added by the AO in the total income of assessee. No other addition was made. The AO in the assessment order nowhere recorded that there was any non-compliance by the assessee of any notice issued by the AO. In the penalty order, the AO levied penalty for non-compliance of notice dated 13.06.2016. There is no reference in the assessment about the notice dated 13.06.2016. The learned AR for the assessee submits that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r we find that this appeal was filed before this Tribunal on 19.01.2018 and came up for hearing for the first time on today that is 18.05.2021. The ld. Sr. DR for revenue again prayed for restoring to the file of learned CIT(A) as the appeal was not adjudicated on merit. 7. We have considered the submission of both the parties and have gone through the orders of Lower Authorities. The AO levied penalty under section 271(1)(b) of the Act of ₹ 10,000/- by taking view that he issued notice under section 142(1) of the Act on 13.06.2016 for fixing the hearing on 26.06.2016. No compliance was made by the AO and therefore a show cause notice dated 08.07.2016 was issued for initiation of penalty. Hearing of case on penalty was fixed on 15. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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