2013 (7) TMI 1023 - AT - Income Tax

Summary

Issues involved: Appeal against penalty imposed u/s 271(1)(b) by Ld. CIT(A) for non-compliance with notice u/s 143(2)/142(1).

Summary:
The assessee appealed against the penalty imposed by the assessing officer u/s 271(1)(b), which was upheld by the Ld. CIT(A). The assessing officer initiated penalty proceedings due to non-compliance with a notice u/s 143(2)/142(1). The penalty of Rs. 10,000/- u/s 271(1)(b) was levied, and this decision was affirmed by the Ld. CIT(A). The assessee, being aggrieved, appealed before the Appellate Tribunal.

During the hearing, the assessee's counsel referred to a previous Tribunal order in the case of Kamdhenu Motors Pvt. Ltd vs. ACIT, where it was held that non-compliance is deemed waived if the assessment order is passed u/s 143(3) and not u/s 144. As the assessment order in the present case was passed u/s 143(3), following the precedent, the penalty imposed by the assessing officer and upheld by the Ld. CIT(A) u/s 271(1)(b) was deleted.

Therefore, the Appellate Tribunal allowed the assessee's appeal, and the order was pronounced in open court on the mentioned date.