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TMI Blog2015 (3) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... cancelled the lease agreement. The notices sent at the Bandra address of the assessee were not at all served to anybody and therefore there was no service on the assessee. - reasons explained by the assessee for non appearance before the Assessing Officer in the assessment proceedings as reasonable cause as none of the notices were properly served to the assessee so as to cause the appearance before the Assessing Officer in the assessment proceedings. Accordingly, in the facts and circumstances of the case and in the interest of justice, we are of the view that the case of the assessee falls under the reasonable cause as contemplated under section 273B of the Income Tax Act and consequently penalty levied under section 271(1)(b) is deleted. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 40.000/- is highly excessive and arbitrary and the same requires to be reduced substantially. 2. In the assessment proceedings, the Assessing Officer issued notices under section 143(2) and 142(1) of the Income Tax Act. Since nobody has attended the proceedings before the Assessing Officer, therefore the assessment was completed under section 144 of the Income Tax Act. Subsequently, the Assessing Officer issued a notice under section 274 read with section 271(b) of the Income Tax Act on 30.10.06 for initiating the penalty proceedings under section 271(1)(b) of the Act. The assessee filed the reply to its show cause notice and submitted that the alleged notices were not served upon the assessee, therefore there was no willful non com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment year under consideration has been completed under section 143(3). Thus the ld. A.R. has submitted that the assessee was having reasonable cause for not appearing before the Assessing Officer. It is pleaded that the penalty levied under section 271(1)(b) is unjustified and accordingly may be cancelled. The ld. A.R. has also pointed out that in the quantum proceedings the Tribunal has accepted the reasons as explained by the assessee as reasonable cause for non appearance and set aside the matter to the record of the Assessing Officer for passing the fresh order after granting the opportunity to the assessee vide order dated 05.03.12 in ITA No.6675/M/2010. 4. On the other hand, the ld. D.R. has relied upon the order of the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Ld. Representatives of parties and the fact that this appeal is arising out of assessment made u/s.144 of the Act and also considering the affidavit of the Chartered Accountant placed at page-88 to 91 of Paper Book, we in the interest of justice, set aside the orders of authorities below and restore the matter to AO with a direction to pass fresh assessment order after giving due opportunity of hearing to the assessee in accordance with law. We may state that if assessee fails to co-operate with AO, AO will pass the assessment order on the basis of material available before him. Hence ground Nos.1 to 4 of appeal is allowed for statistical purposes. 6. In the facts and circumstances of the case, we find that the reasons explained by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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