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Issues involved: Appeal against penalty u/s 271(1)(b) of the Income Tax Act for non-compliance with notices u/s 143(2) & 142(1).
Summary: The appellant, in this case, challenged the penalty of A.10,000/- imposed by the Assessing Officer u/s 271(1)(b) of the Income Tax Act for not responding to notices issued under sec.143(2) & 142(1) on three occasions. The appellant contended that no Show Cause Notice was issued before the penalty was levied. The Commissioner of Income Tax (Appeals) upheld the penalty, stating that the appellant did not respond to the notices. However, the appellant argued that since the assessment was completed u/s 143(3) and not u/s 144, the penalty was unjustified. The Tribunal referred to previous decisions where compliance in assessment proceedings after an assessment u/s 143(3) was considered sufficient, and held that the penalty was not warranted in this case as the appellant cooperated with the assessment proceedings. Therefore, the Tribunal allowed the appeal, ruling that there was no basis for the penalty u/s 271(1)(b) in the appellant's case.
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