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TMI Blog2022 (12) TMI 389X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment proceedings. Therefore the reference made by the learned counsel for the assessee to the order of the Delhi tribunal in the case of Akhil Bhartiya Prathmik Shikshak Sangh Bhawan Trust[ 2007 (8) TMI 386 - ITAT DELHI-G] cannot help the assessee. Appeal of the assessee is partly allowed. - ITA No. 1/Rjt/2020 - - - Dated:- 23-11-2022 - SHRI WASEEM AHMED, ACCOUNTANT MEMBER And SHRI T.R SENTHIL KUMAR, JUDICIAL MEMBER Assessee by : Written Submission Revenue by : Shri BD Gupta, CIT. D. R ORDER PER WASEEM AHMED , ACCOUNTANT MEMBER : The captioned appeal has been filed at the instance of the Assessee against the order of the Learned Commissioner of Income Tax (Appeals)-1, Rajkot, dated 06/12/2019 arising i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eds cancellation. 7. The Ld. CIT(A) has erred in law and facts in not considering the aspect that the initiation of the penalty proceedings itself was bad in law. The penalty needs cancellation. 8. The Ld. CIT(A) has erred in law and facts in not considering the aspect that there was no legal service of notice was served on the assessee giving reasonable time. The penalty needs cancellation. 9. The Ld. CIT(A) has erred in law and facts in not providing adequate and reasonable time. The penalty needs cancellation. 10. Without prejudice, the assessee was having reasonable cause on consideration of which no penalty ought to have been levied. The penalty needs cancellation. 11. Without prejudice, no reasonable opportuni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the defaults committed by the assessee as discussed above. 6. On appeal by the assessee, the learned CIT(A) also confirmed the penalty levied by the AO. 7. Being aggrieved by the order of the learned CIT (A) the assessee is in appeal before us. 8. The learned AR before us filed a written submission wherein it was contended that the assessment was framed under section 143(3) read with section 263 of the Act which implies that the substantial compliance was made during the assessment proceedings. Therefore, no penalty can be imposed in the given facts and circumstances. 9. On the other hand, the learned DR before us vehemently supported the order of the authorities below. 10. We have heard the learned DR and carefully peruse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1)(b) of the Act. In case of failure of the assessee to comply with the notice under Section 143(2) of the Act, the remedy with the Assessing Officer lies with framing of best judgment assessment under the provisions of Section 144 of the Act and not to impose penalty under Section 271(1)(b) of the Act again and again. In this view of the matter, we restrict the penalty levied under Section 271(1)(b) of the Act to the first default of the assessee in not complying with the notice under Section 143(2) of the Act. Accordingly, the penalty imposed is restricted to Rs. 10,000/- as against Rs. 50,000/- confirmed by the learned CIT(A). The grounds of appeal of the assessee are thus partly allowed. 10.1. Respectfully following the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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