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TMI Blog2021 (9) TMI 1015X X X X Extracts X X X X X X X X Extracts X X X X ..... Asstt.Year 2015-16 due to alleged default of non-compliance of the statutory notice. 3 Brief facts of the case are that the assessee is engaged in business of manufacturing of SS pipes and tubes. It has e-filed return of income on 30.9.2015 declaring income at Rs. 1,24,99,840/-. The return was processed under section 143(1) of the Act and thereafter selected for scrutiny assessment. The assessment was completed under section 143(3) by accepting the returned income. Thereafter, the ld.AO initiated penalty proceedings under section 271(1)(b) for non-compliance of notice issued under section 142(1) dated 18.9.2017. Accordingly, a notice under section 274 read with section 271(1)(b) of the Act was issued to the assessee, however, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )(b) of the Act. It further pleaded that assessment in the case of the assessee was finalized under section 143(3) and not under section 144 of the Act, and there is a considerable compliance of notices as is evident from the observation of the ld.AO in the assessment order in para-3 that representatives of the assessee have attended and furnished the requisite details/evidence from time to time, which were perused and placed on record, and that the case was discussed with the AR present. This goes to show that the assessee has fully cooperated in the assessment proceedings, and there is no room for visiting the assessee with penalty under section 271(1)(b) of the Act. On the other hand, the ld.DR supported orders of the Revenue authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely on technical grounds. Various Benches of the Tribunal in a number of decisions have held that where the assessment order was finally passed u/s 143(3) and not u/s 144 of the Act due to subsequent compliance during the assessment proceedings, that would be considered as good compliance and the defaults committed earlier should be ignored and by taking a lenient view the penalty u/s 271(1)(b) of the I.T. Act 1961 should not be levied. Therefore, in the case on hand, we are satisfied that the assessee had reasonable causes for non-compliance of a particular notice, which does not warrant imposition of penalty under section 271(1)(b) of the Act. Thus, we set aside order of the ld.CIT(A) and cancel the impugned penalty. 6. In the result, ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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