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TMI Blog2012 (6) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. The assessees in these cases filed the income-tax return on October 31, 2005, the same was processed under section 143(1) on July 4, 2006. Notice under section 143(2) was issued on September 15, 2006 in the case of Shri Balram Kumar Mahendra fixing the case for October 24, 2006. The notice under section 143(2) was again issued on May 31, 2007 fixing the case for June 13, 2007 but no one attended. Show cause penalty notice under section 271(1)(b) was issued on June 28, 2007 fixing the case for July 31, 2007, but no reply was received. Under these circumstances, the Assessing Officer held that the assessee was at fault for non-compliance of hearing on July 31, 2007. Hence, he levied the penalty of Rs. 10,000 under section 271(1)(b) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Governors India (P.) Ltd. v. CIT [2002] 253 ITR 745/[2001] 118 Taxman 433 (Delhi) wherein it was held that the levy of penalty is not automatic and the absence of a reasonable cause is necessary. He further submitted that since the first notice was sent at the new address, the Assessing Officer very much knew the assessees' new address and which was on record in both cases. The assessees have shifted to their daughter's house in East Patel Nagar, New Delhi, for the post operative care of Ms. Prem Mahendra and had duly informed the post office and their neighbours. The Department had got the new address of the assessee as earlier notice dated September 15, 2006 seeking details were sent at the new and correct address. 8. The learned Depar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umacious or dishonest, or acted in conscious disregard of its obligation. Penalty will not also be imposed merely because it is lawful to do so. Whether penalty should be imposed for failure to perform a statutory obligation is a matter of discretion of the authority to be exercised judicially and on a consideration of all the relevant circumstances. Even if a minimum penalty is prescribed, the authority competent to impose the penalty will be justified in refusing to impose penalty, when there is a technical or venial breach of the provisions of the Act, or where the breach flows from a bona fide belief that the offender is not liable to act in the manner prescribed by the statute". 11. In the background of the aforesaid discussion and pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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