9911796707
TMI Blog2014 (1) TMI 1131X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) of the Income Tax Act was served upon it, yet it was ready to submit the required details - But in this case, the AO simply rejected the explanation given by the assessee without rebutting the same - The ld. CIT(A) also upheld the levy of penalty in a mechanical manner without correctly appreciating the facts - The assessee in the subsequent proceedings produced the relevant material in response to the fresh notices issued by the AO under section 143(2) and 142(1) and the assessment proceedings were completed - It is not the case where the assessment proceedings were completed ex-parte or where the assessee had not produced the relevant material/evidences during the assessment proceedings - Decided in favour of assessee. - ITA No.618 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee has already placed on file two paper books and the assessee does not want to appoint any counsel for the matters. It has been prayed that the above cases be decided on merits after going through the documents. In view of the request of the assessee, we proceed to decide the appeals on merits after hearing the ld. D.R. and on the basis of material on record. 4. The ld. CIT(A) has summarized the details of notices sent to the assessee and the conclusion of the AO regarding failure of the assessee to comply the notices in a chart which for the sake of convenience is reproduced as under:- Sl. No. Notice under which section and dated Date of hearing Remarks 1 143(2) and 142(1) dated 3/2/2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essential element to impose penalty. Ld. CIT(A) has also linked the failure of the assessee with the material found and seized by the department as a result of search and the action of the assessee in avoiding the proceedings and its failure to furnish the details. Finally, ld. CIT(A) has come to a conclusion that AO was justified in imposing the penalty and in this manner levy of penalty has been sustained. Being aggrieved from the order of the ld. CIT(A), the assessee thus has preferred the present appeal. 6. Before us ld. D.R, while relying upon the orders passed by AO and ld. CIT(A), has pleaded that assessee did not attend on the various dates and did not file the detail and as such the penalty has rightly been sustained by ld. CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 was in the case of Mafatlal (Individual) and on the date fixed reply was filed in the said case. It was further submitted that the assessee was still ready to provide the required details. Thus it was submitted that there was no non-compliance of the statutory notice and proceedings under section 271(1)(b) should be dropped. However, A.O rejected the explanation given by the assessee. AO further observed that assessee belonged to M/s. Prakash Steelage Group, which was a continuous defaulter of non-compliance of notices. The assessee had failed to give satisfactory explanation on the show cause notice and, therefore, he imposed penalty under section 271(1)(b) of the Act. Similar order had also been passed in respect of all other assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithout rebutting the same. The ld. CIT(A) also upheld the levy of penalty in a mechanical manner without correctly appreciating the facts. The subsequent conduct of the assessee in this case is also relevant. The assessee in the subsequent proceedings produced the relevant material in response to the fresh notices issued by the AO under section 143(2) and 142(1) and the assessment proceedings were completed. It is not the case where the assessment proceedings were completed ex-parte or where the assessee had not produced the relevant material/evidences during the assessment proceedings. 9. We have also gone through the case laws cited by the ld. D.R. In the case of 'Repaka Seetharamswamy' (supra) the case was fixed by the AO for final hea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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