TMI Blog2022 (9) TMI 1420X X X X Extracts X X X X X X X X Extracts X X X X ..... the same. In our view the assessee has shown sufficient cause within the scope of section 273B of the Act. The notice dated 02/12/2020 was issued to the assessee. In response to said notice, the assessee sought adjournment on 14/12/2020. The adjournment was allowed to assessee and on the request of assessee, the hearing of the case was fixed on 01/01/2021 and again for 11.01.2021. In our view, once AO himself allowed adjournment, the cause of action for non-compliance was waived on that moment itself. In our view, the action of ld. CIT(A) in confirming the penalty for one default is also liable to be set aside. Assessee has shown sufficient cause for noncompliance before ld CIT(A). The ld CIT(A) was having co-terminus power thus, he ought to have deleted the entire penalty levied under section 271(1)(b) or 272A(1)(d). We find that the assessee has relied on various case laws, wherein coordinate benches of Tribunal have taken view that when the assessment was framed under Section 143(3), merely because the assessee could not make compliance for single hearing due to bonafide reason on the penalty under Section 271(1)(b) of the Act cannot be imposed on the assessee for such bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leave to add, alter or delete any ground(s) either before or in the course of the hearing of the appeal. 3. Brief facts of the case are that a search and seizure action under Section 132 of the Act was carried out on 23/01/2018 against the assessee, who was engaged in dealing with various Crypto Currencies. The assesse is one of the person of the group indulging in Crypto Currency. Consequent upon said search and incriminating material, notice under Section 153A was issued to the assessee on 30/05/2019. In response to notice under Section 153C, the assessee filed his return of income on 29/06/2019 declaring/offering income of Rs.1,81,450/-. The assessment was completed on 24/08/2021 accepting the returned income of the assessee under Section 143(3) r.w.s. 153A of the Act. The Assessing Officer while passing the penalty order under Section 271(1)(b) of the Act had recorded that during the assessment proceedings, notice under Section 142(1) was issued to the assessee for calling certain details. The Assessing Officer initiated and levied penalty under section 271(1)(b). The assessing officer while passing impugned order noted that vide notice dated 02/12/2020, the date of hear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use complete details were filed by assessee during the assessment proceedings will not mitigate the default committed twice. Further because the assessment was completed under Section 143(3) r.w.s. 153A of the Act, such act will not exonerate the assessee in defaulting to appear before the Assessing Officer on two occasions. The Assessing Officer has levied penalty for two defaults. The ld. CIT(A) held that he is of the opinion that out of Rs. 20,000/- penalty levied by the Assessing Officer is on higher side and he ld. CIT(A) upheld the penalty of Rs. 10,000/- levied under Section 271(1)(b) of the Act. Further aggrieved, the assessee has filed the present appeal before this Tribunal. 7. We have heard the submissions of the learned authorised representative (ld. AR) of the assessee and the learned Senior Departmental Representative (ld. Sr. DR) of the Revenue and have also perused the orders of the lower authorities carefully. The ld. AR of the assessee submits that the assessee has made full compliance during the assessment for all the assessment years. The assessment was completed under Section 143(3) r.w.s. 153A of the Act in accepting the returned income in all the years. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elief to the assessee. 10. We have considered the rival submissions of both the parties and have gone through the orders of lower authorities. We have also deliberated upon the various case laws relied by the ld. AR of the assessee including the decision of Hon ble Supreme Court in suo moto writ petition No. 3/2020. We find that the Assessing Officer finalised the assessment order on 24/08/2021 under section 143(3) rws 153A. While finalizing the assessment order, no variation in the returned income or assessed income was made in four assessment orders. Moreover, the assessment was completed under Section 143(3) r.w.s. 153C of the Act. We find that before ld CIT(A) the assessee specifically contended that there was severe Covid-19 pandemic during the relevant period and everybody is doing work with safety measures and that his Accountant were busy in audit work. The submissions of assessee was not accepted as bonafide explanation with the scope of section 273B. Though, the Assessing Officer levied penalty for two default, however, the ld CIT(A) restricted it to one default only. In our view, the assesse has shown sufficient cause within the meaning of Section 273B in his submissi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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