The Tax Publishers2020 TaxPub(DT) 5011 (Mum-Trib)

INCOME TAX ACT, 1961

Section 271(1)(b)

Where it was found that there was no reason to come to the conclusion that the default committed by assessee was willful, penalty imposed under section 271(1)(b) was required to be deleted.

Penalty under section 271(1)(b) - Leviability - No willful default -

AO held that assessee had not complied with the notices issued in the course of assessment proceedings under section 142(1). Thus, it was held that there was a clear default, which was also deliberate. Therefore, penalty was levied under section 271(1)(b). Held: It was noticed that the assessment was completed under section 143(3), and not under section 144. This means that subsequent compliance in the assessment proceedings was considered as good compliance and the defaults committed earlier were ignored by AO. Therefore, in such circumstances, there could have been no reason to come to the conclusion that the default was willful. Thus, following the decision held in case of Akhil Bhartiya Prathmik Shikshak Sangh Bhawan Trust v. Asstt. Director of Income-Tax. 2008 TaxPub(DT) 882 (Del-Trib) penalty imposed was deleted.

Followed:Akhil Bhartiya Prathmik Shikshak Sangh Bhawan Trust v. Asstt. Director of IT 2008 TaxPub(DT) 882 (Del-Trib).

REFERRED :

FAVOUR : In favour of assessee.

A.Y. : 2012-13 & 2013-14



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