TMI Blog2023 (1) TMI 911X X X X Extracts X X X X X X X X Extracts X X X X ..... ply of notice in which there was a reasonable cause to treat. In our considered opinion, that the assessee was served with the notices issued by the AO and subsequently reply of notices were sent by the assessee is also on record. Reasons explained by the assessee were bonafide and reasonable before the CIT (A) where the ld. CIT(A) has not taken into consideration. We set aside the order passed by ld. CIT(A) and the penalty imposed Under section 271(1)(b) of the Act for non compliance of Section 142(1) is deleted. The appeal of the assessee is allowed. - ITA Nos. 119 & 120/Jodh/2022 - - - Dated:- 20-1-2023 - SHRI B. R. BASKARAN , ACCOUNTANT MEMBER AND Dr. S. SEETHALAKSHMI , JUDICIAL MEMBER For the Assessee : Shri Suresh Ojha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase are that the assessee is an individual and receives income from agricultural activities. The assessment u/s 143(3) r.w.s. 147 of the I.T. Act was completed by the AO on 27.12.2017 determining the total income at Rs.3,63,518/-. The ld. PCIT, Jodhpur vide his order dated 05.03.2021 u/s 263 of the I.T. Act has set aside the assessment order of the AO for not examining the agricultural income of the assessee of Rs.1,45,000/- which was claimed as exempt by him. Subsequently, the AO completed the assessment u/s 147 r.w.s. 263 of the I.T. Act on 01.12.2021, wherein he assessed the total income at Rs.5,08,518/- by not allowing the agricultural income of Rs.1,45,000/- as exempt. The AO also levied penalty u/s 271(1)(b) of the I.T. Act of Rs.10,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to appear before the Assessing Officer either personally or through a duly authorized representative 31.12.2021 to show cause why an order imposing a penalty on him should not be made under section 271(1)(b) of the Income Tax Act, 1961. The said notice was duly served upon the assessee but no one appeared on the given date. Thereafter, two more notices u/s 274 r.w.s 271(1)(b) have been issued to the assessee on 26.04.2022 and 19.05.2022. The said notices duly served upon the assessee. 3. Thereafter, this office has received response from assessee's brother through ASK on 30.05.2022 in which he has requested that he required at least 30 days for compliance to penalty notice. However, the same is not possible as penalty is getting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by the AO on 27.12.2017 determining the total income at Rs.3,63,518/-. 5.3 It was observed from the balance sheet filed by the appellant that no agricultural land was shown under the head Fixed Assets and agricultural income declared by the appellant was accepted by the AO during the course of assessment proceedings. The PCIT, Jodhpur vide his order dated 05.03.2021 u/s 263 of the 1.T. Act has set aside the assessment order of the AO for not examining the agricultural income of the appellant of Rs.1,45,000/- which was claimed as exempt by him. 5.4 The AO during the assessment proceedings u/s 147 r.w.s 263 of the I.T. Act issued various statutory notices u/s 142(1) of the I.T. Act and a show cause notice to the appellant. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon him on 31.05.2022 However, there was no response from the appellant. The AO passed the penalty order on 10.06.2022 as the case was getting barred by limitation of time on 30.06.2022. 5.8 In response to one of the notice, the appellant's brother had appeared before the AO proves the fact that all these notices were served upon the appellant. It is observed from the above facts that, even though various notices were issued to the appellant and duly served upon him, the appellant did not choose to respond to these notices deliberately. However, it made a plea to the AO to keep the penalty proceedings in abeyance as the appellant had appealed against the assessment order. The AO could not postpone the penalty proceedings as it wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompliance of notice issue previously. 7.2 We are of the view that the AO had levied the penalty at Rs. 10,000/- for non compliance of notices Under section142(1) of the Act. As it was clear from the provisions of Section 271(1)(b) that this provision can be invoked only for non compliance of notice Under section 115WD (2) or Section 115WE(2) or Section 142(1) or 143(2) or directions issued Under section 142(2A) of the Act. Therefore, other than the default committed by the assessee specified in clause (b) of section 271(1) the non compliance to the other notices or directions would not attract the penalty Under section 271(1)(b) of the Act. Further, we perused the documentary evidence of the assessee s reply notices on 14.06.2022, 20.06. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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