TMI Blog2023 (3) TMI 763X X X X Extracts X X X X X X X X Extracts X X X X ..... would have been mandatory. Section 273B as noted further throws light on the legislative intent, as it specifically provides that no penalty shall be imposed, if the assessee proves that there was reasonable cause for the said failure . - Decided in favour of assessee. - ITA Nos. 130 to 134/Rjt/2021 - - - Dated:- 3-3-2023 - Shri Waseem Ahmed , Accountant Member And Shri T. R. Senthil Kumar , Judicial Member For the Assessee : None ( Written Submission filed ) For the Revenue : Shri B. D. Gupta , Sr. D. R. ORDER PER BENCH : - These five appeals are filed by the Assessee as against the separate Appellate orders dated 11.08.2021 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as NFAC ), whereby confirming the levy of penalty under section 271(1)(b) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) relating to the Assessment Year (A.Y) 2016-17. As common issue of Penalty u/s. 271(1)(b) is involved in all the five cases and facts are identical the same are disposed of by this common order. 2. The brief facts of the case is that the assessee is a Firm engaged in the bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ught to be deleted. This penalty is for the alleged default of hearing dtd. 14/06/2018. 3] This was for the reason that the accountant of the assessee who used to write the books from his home was out of Gujarat and the accounting material was with him. However, as and when he came to Rajkot the details were got prepared and were submitted to the Ld. A.O. 4] It is respectfully submitted that the assessee had applied for the adjournment of hearing of the case on various dates of Hearing but the order under appeal does not mention such adjournment asked for by the assessee, and therefore the penalty may kindly be ordered to be deleted. 5] It is respectfully submitted that the assessee had complied and e-filed written submissions as under and in view of that the subsequent compliance may kindly be considered that the earlier defaults have been condoned. [a] Dtd.05/1 1/201 8 filed in response to notice of A.O.dtd.07/06/2018. [b] Dtd.16/1 1/2018 filed in response to notice of A.O.d.td.12/11/2018. [c] Dtd.07/12/2018 filed in response to notice of A.O.dtd.07/06/2018. [d] Dtd. l 9/1 2/20 18 filed in response to notice of A.O.dtd.12/11/2018. [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted that the assessee had complied and e-filed written submissions as under and in view of that the subsequent compliance may kindly be considered that the earlier defaults have been condoned. [a] Dtd.05/11/2018 filed in response to notice of A.O.dtd.07/06/2018. [b] Dtd.16/11/2018 filed in response to notice of A.O.dtd.12/11/2018. [c] Dtd.07/12/2018 filed in response to notice of A.O.dtd.07/06/2018. [d] Dtd.19/12/2018 filed in response to notice of A.O.dtd.12/11/2018. [e] Dtd.20/12/2018 filed in response to notice of A.O.dtd.12/11/2018. 6](a) The fact is that the assessee had complied to the various notices and filed voluminous submissions in the course of assessment proceedings and therefore the assessment order passed u/s.144 was not called for on the facts of the case and was not in accordance with Jaw; as such, though the additions could be sustained this was not a case for assessment u/s.144. In respect of those details which the assessee could furnish in the course of assessment proceedings the same where such as were not in the control of the assessee and the same relates to unsecured loans. However, the assessee had furnished the PAN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed so many details, the Assessing Officer ought not have passed the assessment order u/s. 144 of the Act, but ought to have passed the assessment order u/s. 143(3) of the Act. As stated by the assessee during the appellate proceedings, the entire additions made u/s. 144 assessment order is deleted by the Ld. CIT(A). Thus, the grievance made out by the assessee is found to be genuine and reasonable. In the above circumstances the levy of penalty under Section 271(1)(b) in our considered opinion is unwarranted. For better understanding Section 271(1)(b) and 273B are extracted below: 271. (1) If the Assessing Officer or the Commissioner (Appeals) or the Principal Commissioner or Commissioner in the course of any proceedings under this Act, is satisfied that any person .. (b) has failed to comply with a notice under sub-section (2) of section 115WD or under sub-section (2) of section 115WE or under sub-section (1) of section 142 or sub-section (2) of section 143 or fails to comply with a direction issued under sub-section (2A) of section 142, or he may direct that such person shall pay by way of penalty, (i) [***] (ii) in the cases referred to in c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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