9911796707
TMI Blog2024 (8) TMI 737X X X X Extracts X X X X X X X X Extracts X X X X ..... as selected for scrutiny through CASS and notice under section 143(2) was issued by ITO, W-1(1), Nangal and thereafter the case of the assessee was transferred to ITO, W-4(1), Chandigarh. Thereafter statutory notices under section 143(2) and 142(1) were issued. In view of non compliance to certain statutory notices issued under section 143(2) and 142(1), the AO passed the penalty order under section 272A(1)(d) on 11/11/2019 imposing penalty of Rs. 50,000/-. Subsequently, the assessment proceedings were completed under section 144 by the AO vide its order dt. 20/12/2019 determining total income at Rs. 4,60,30,585/-. 3. Against the levy of penalty, the assessee moved in appeal before the Ld. CIT(A), NFAC, Delhi who has upheld the action of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for from the assessee. It was further submitted that the said notice could not be complied with as these did not come to the notice of the assessee as the same were delivered on mail which was inoperative. It was further submitted that no window to file a response to the notice issued was open in the Department portal against which the reply could have been filed by the assessee. It was accordingly submitted that it is not a case of any deliberate non-compliance to the said notice and in any case, no specific information / documentation was called for and which was not supplied by the assessee and therefore, there is no basis for levy of penalty in respect of these two notices. 5.4 Regarding the 4th notice dt. 03/09/2019 issued under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not with the assessee company, the assessee company again sought time. It was accordingly submitted that there was no deliberate intention on the part of the assessee company not to file the desired information and therefore penalty cannot be levied in this regard. 5.6 It was further submitted that it is not a case where the assessee has not complied with the aforesaid notice dated 20/09/2019 calling for information and documentation during the course of assessment proceedings. It was submitted that subsequently, the assessee complied with the said notice and filed its response on 26/11/2019 and copy of which is placed at assessee's paper page 25 to 27. 5.7 It was further submitted that the AO subsequently issued notices under section 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee company. 7. We have heard the rival contention and perused the material available on the record. The AO has levied the penalty for non-compliance on part of the assessee to five specific notices issued during the course of assessment proceedings, it would therefore be relevant to refer to each of these notices, the information called for and the compliance thereof, if any and the explanation so furnished by the assessee in case of non-compliance. 7.1 As far as the first three notices issued under section 143(2) dt. 09/08/2018, 27/09/2018 and 28/09/2018 are concerned, we find that these were statutory notices issued by the AO to comply with the statutory mandate of informing the assessee that its case has been selected for scrutiny. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... compliance of these three notices issued under section 143(2) is concerned, we find that there is no legal and justifiable basis for levy of penalty. In fact, the assessee did respond to the said notices, the Competent authroity acted on the assertion so made by the assessee, the case of the assessee was thereafter transferred from non- jurisdictional to jurisdictional AO and in any case, no information/documentation has been called for and therefore, there is no question of non-compliance to the said notices in terms of non-submission of requisite information/documentation. Thus, there is no legal and justifiable basis for levy of penalty as far as these three notices is concerned and the penalty so levied is hereby directed to be deleted. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... find that the AO has passed the penalty order without even taking into consideration the compliance made by the assessee in response to the notices issued by him and it is therefore a case of delayed compliance rather than non-compliance on part of the assessee and for the delay, we find that the assessee has put forth its explanation in terms of non-availability of information/documentation due to one of the its Directors becoming hostile and who has in his possession the relevant information/documents as sought for. 7.8 Regarding the contention of the ld DR that it is a case where the assessment order has been passed u/s 144 and not u/s 143(3) of the Act and the assessee company cannot take benefit of subsequent compliance to the notice ..... X X X X Extracts X X X X X X X X Extracts X X X X
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