TMI Blog2022 (9) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the assessment was framed after considering the reply and document filed by the assessee then it does not fall in the category of non-compliance by the assessee at all. Hence when the assessee finally complied with the notice and the AO has duly considered the reply and the documents filed by the assessee while framing the assessment, then the subsequent penalty levied by the AO is not justified. Even otherwise, when this is the year of changing the mode of assessment proceedings from physical to digital /electronically then the delay in compliance due to change in the mode of communication and proceedings is a bonafide reasons and not deliberate. Accordingly, the penalty levied by the Assessing Officer under section 272A(1)(d) is del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceeding hence imposition of penalty is highly unjustified. 5- That in any view of the matter the assessee reserves his rights to take any fresh ground of appeal before hearing of appeal. 2. The assessee is a partnership firm and filed its return of income for the year under consideration on 22nd October, 2017 declaring total income of Rs. 44,680/-. The assessment was framed under section 143(3) on 28th December, 2019. During the course of assessment proceedings, the Assessing Officer was of the view that the assessee has not complied with the notice under section 142(1) dated 18th November, 2019 and consequently initiated the penalty proceedings by issuing a show cause notice under section 274 r.w.s. 272A(1)(d) of the Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this is the year of starting of e-assessment and notice through online/electronically therefore, due to initial year of shifting towards digital and electronic mode, the mistake for not responding to the same is a bonafide mistake. 5. On the other hand, the learned DR has submitted that though the assessee has filed the reply to notice under section 142(1) dated 18.11.2019 but the same was filed on 20.12.2019 and after the show cause notice issued by the Assessing Officer under section 274 r.w.s. 272A(1)(d) of the Income Tax, therefore, there is a clear non-compliance of the notice issued under section 142 wherein the assessee was required to make the compliance on or before 22nd November, 2019 but the assessee filed the reply on 20th De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m generated letter on 18.07.2019 to furnish reply by the date already fixed. In response, the assessee furnished online reply on 29.07.2019 and sent documents through post. Further queries were given to the assessee through notice u/s 142(1) issued on 18.11.2019, fixing the date for compliance on or before 22.11.2019 and served /delivered on assessee's email. The assessee failed to comply on or before the date fixed. In view of persistent non-compliance of statutory notice u/s 142(1) a show cause notice u/s 274 rws 272A(1)d) of the Act was issued on 05.12.2019, fixing the date for compliance on 09.12.2019 and served/ delivered on assesee's email. In response, the assessee filed reply to the queries of notice u/s 142(1) and attached ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of account and reflected in the audit report also. The said account is old account and in existence for last number of years. However the response regarding cash deposit could not be furnished as the assessee was not aware about the online compliance but the fact is that cash deposited in bank account are from disclosed sources . Reply dated 20th December, 2019-query no. 1, 2 10 That as per query no. 1 month wise details of opening cash, cash in hand, cash sales, cash withdrawals from bank, cash expenses the same is enclosed as per chart. That as per query no.2 month wise opening stock, purchases and sales and closing stock in value is enclosed. Due to voluminous item, day to day stock position is not maintained but in ea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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