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TMI Blog2022 (3) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee has been able to show reasonable cause for not responding to the initial notice issued under section 142(1) of the Act. It is pertinent to mention here that subsequently on learning about ongoing assessment proceedings, the assessee appeared before the Assessing Officer and furnished the requisite details. Assessing Officer after taking note of the documents/submissions of the assessee has passed the assessment order under section 143(3) of the Act . It is not a case of absolute non-appearance of the assessee before the Assessing Officer. Appellate authority has rejected the explanation furnished by the assessee for non-compliance of the notice issued under section 142(1) of the Act merely for the reason that during penalty proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... behalf of the assessee submitted that penalty has been levied by the Assessing Officer for assessee s non-compliance to the notice issued under section 142(1) of the Act. The ld. Authorized Representative of the assessee submitted that the said notice was issued to the assessee electronically. The assessee was not carrying out any business activity, therefore, was operating with minimal employees during the relevant period. This fact is also evident from para 4 of the assessment order dated 27/12/2019 for the impugned assessment year. The Department was gradually moving towards faceless assessment /e-assessment and hence, stopped physical serving notices to the asessees in the year 2019. This being the first year of online interface, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ately failed to appear before the Assessing Officer. The explanation furnished by the assessee for non-appearance before the Assessing Officer is an after thought. No such explanation was furnished by the assessee before the Assessing Officer. 4. We have heard the submissions made by rival sides. The Assessing Officer vide order dated 21/12/2019 has levied penalty of ₹ 10,000/- under section 272A(1)(d) of the Act for non-compliance of the notice issued under section. 142(1) of the Act. Undisputedly, no explanation was furnished by the assessee before the Assessing Officer for non-compliance of the notice under section 142(1) of the Act. As per the contentions of ld. Authorized Representative of the assessee, the notice under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oing assessment proceedings the assessee came to know only on receipt of order u/s. 272A(1)(d) of the Act and demand notice. The explanation furnished by the assessee before the CIT(A) and before the Tribunal is consistent. We are satisfied that non-appearance of the assessee in response to the initial notice under section 142(1) of the Act was not deliberate. The year 2019 being the initial year of shift towards digital and electronic mode, the mistake appears to be bonafide. The assessee has been able to show reasonable cause for the failure to comply with statutory notice u/s. 142(1) of the Act. Thus, in our view penalty levied u/s. 272A(1)(d) of the Act is unsustainable. The Assessing Officer is directed to delete the penalty. 6. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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