The Tax Publishers2020 TaxPub(DT) 4788 (Del-Trib)

INCOME TAX ACT, 1961

Section 271(1)(b)

Where assessee did not comply with notice under section 142(1) but assessment order was passed under section 143(3) and not under section 144, that meant that subsequent compliance of assessment proceedings was considered as good compliance and defaults committed earlier were ignored by AO and, therefore, levy of penalty under section 271(1)(b) was not justified.

Penalty under section 271(1)(b) - Validity - Assessee did not comply with notice under section 142(1) - Assessment order was passed under section 143(3), and not under section 144

Issue was as regards imposition of penalty under section 271(1)(b) for non-compliance by assessee with respect to statutory notices issued under section 142(1), when assessment was completed under section 143(3). Held: Where assessee did not comply with notice under section 142(1) but assessment order was passed under section 143(3) and not under section 144, that meant that subsequent compliance of assessment proceedings was considered as good compliance and defaults committed earlier were ignored by AO and, therefore, levy of penalty under section 271(1)(b) was not justified.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :



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