9911796707
TMI Blog2017 (9) TMI 1352X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax Act. Therefore, there is no question of assessee making meaningful compliance of notices at the assessment proceedings u/s 153A read with section 143(3) of the Act Income Tax Act. The explanation of the assessee have not been appreciated by the Ld. CIT(A), therefore, explanation of assessee shall be considered favourable to hold that there appears reasonable cause for the assessee for the non compliance of both the notices. Section 273B of the Income Tax Act provides that no penalty shall be imposable on the person or the assessee, as the case may be, for any failure referred to section 271(1)(b) of the Act, if assessee proves that there was a reasonable cause for the said failure. The explanation of assessee clearly proves that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e defaults were for uncontrollable circumstances and for bona fide reasons beyond control of appellant. 4. That on the facts and circumstances of the case and in law, the learned Commissioner of Income Tax, Appeals -VI, New Delhi, erred in sustaining an inference that the appellant has willfully avoided Income Tax proceedings and as such is liable for penalty under section 271(1)(b) of Income Tax Act, 1961. 5. That on the facts and circumstances of the case and in law, the learned Commissioner of Income Tax, Appeals -VI, New Delhi, erred in sustaining the penalty order without considering the appellant s submissions (explaining the facts and law involved) filed on 24/06/2014. 6. That on the facts and circumstances of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, it was noted that there was a willful non-compliance on the part of the assessee to the notices issued above. The AO accordingly levied the penalty u/s 271(1)(b) of the Act, in the sum of ₹ 10,000/- for each such failure. Since two notices were not complied, therefore, penalty of ₹ 20,000/- each in every year levied. 5. The assessee challenged the penalty orders before CIT(A). In the statement of facts filed before Ld. CIT(A), it is explained that the assessee was not provided complete records and documents seized during the course of search as well as copies of the some of seized material provided were not legible, the assessee for the reasons beyond control was constrained from filing his return u/s 153A of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpugned orders as well as considered statement of facts filed by assessee before Ld. CIT(A). The AO levied the penalty for noncompliance of the notices issued u/s 142(1) of the Act on 26.04.2013 fixing the case for hearing on 13.05.2013 and notice u/s 143(2) on 12.09.2013 for fixing the case for hearing on 19.09.2013 which have not been responded to by the assessee. 9. The Assessee explained before Ld. CIT(A) that complete seized records and documents seized during the course of search have not been provided to the assessee as well as some of the copies of the seized material provided were not legible. Due to this reason the assessee was constrained from filing his return u/s 153A of the Act. This was the reason for non compliance of b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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