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| The Tax Publishers2021 TaxPub(DT) 0862 (Kol-Trib) INCOME TAX ACT, 1961
Section 271(1B)
Even if assessee was not appeared personally, the written submission of the assessee should be taken as reasonable compliance of notice under section 142(1) on the part of the assessee, requiring no imposition of penalty under section 271(1B).
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Penalty under section 271(1B) - Non-compliance of notice under section 142(1) - Written submission of explanation by the assessee - Sufficient compliance requiring no imposition of penalty under section 271(1B)
In the course of assessment proceedings, notice under section 142(1) along with detailed questionnaire was issued and duly served upon the assessee. However, no compliance was made by the assessee. Consequently, penalty proceedings under section 271(1B) was initiated and finally imposed in the absence of any response from the assessee. On appeal, CIT(A) confirmed the penalty order of the AO. Held: On perusal of records, it transpired that a remand report was furnished to the CIT(A) by the AO wherefrom it appeared that the assessee did indeed furnish its explanation which appeared to be reasonable and it could not be said that there was non-compliance on the part of the assessee. In view of this, the AO was directed to delete the penalty, levied under section 271(1B).
Followed:Hindustan Steel Ltd. Vs. State of Orissa ((1972) 83 ITR 26 (SC) : 1972 TaxPub(DT) 0009 (SC))
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2010-11 or 2016-19
IN THE ITAT, KOLKATA BENCH
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