9911796707
TMI Blog2024 (6) TMI 940X X X X Extracts X X X X X X X X Extracts X X X X ..... 272A(1)(d) - Since the assessee s Accountant was also not well past Covid-19 Pandemic situation, the assessee could not reply to the earlier statutory notices and filed its reply which has resulted in passing the regular assessment order dated 23.09.2022 u/s. 143(3) in the faceless regime. AO extracted the reply filed by the assessee that his Accountant suffering from Covid-19 ill health and his prolonged absence made the assessee not to file the details. Thereafter a new Accountant was engaged, with various difficulties collected the information and submitted before the assessing officer which are reproduced in Page No. 22 of the assessment order. Thus the assessee has been able to show reasonable cause for the failure to comply with statu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to as the Act ) relating to the Assessment Year 2020-21. 2. The brief facts of the case is that the assessee is a firm engaged in the business of Wholesale Retail Trading of the Dry fruits, Pulses, Spices, Fruits. For the Asst. Year 2020-21, assessee filed its Return of Income on 18.03.2021 declaring total income of Rs. 16,61,820/-. The case was taken up for scrutiny assessment and 142(1) notice dated 01.11.2021, 22.11.2021 and 13.12.2021 were issued, however the assessee failed to response to the above notices. Therefore, the A.O. issued show cause notice dated 04.02.2022 and revised show cause notice dated 29.08.2022 against which the assessee furnished part information on 27.08.2022. Based on the same, assessment was completed, determ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led from complying with the notice because of the absence of the accountant who was affected by the pandemic Covid-2019 and the assessee could engage new accountant only later on. Kind attention is invited to the provisions of section 273B which postulates that where the default is due to good and sufficient reasons, no penalty is to be levied. In the case of the assessee, their existed good and sufficient reasons as mentioned above for the omission to comply with the notice. It is therefore requested that the penalty proceedings may please be dropped in view of section 273B of the Act. Moreover, the assessment was ultimately pass u/s. 143(3) r.w.s. 144B of the Act. 4. However the Assessing Officer was not satisfied with the explanation off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e new Accountant could not be able to collect the details and submit before the assessing officer. However assessee filed its reply to the final show cause notice and assessment was passed after hearing the assessee and not an exparte order. Hence the levy of penalty for non-compliance to the notices is liable to be deleted, taking note of the reason beyond the control of the assessee. 8. Per contra, the Ld. Sr. D.R. Shri Ashok Natha Bhalekar appearing for the Revenue submitted that 142(1) notices issued are after the Covid-19 Pandemic situation and no medical records are filed by the assessee. Furthermore the appeal before the Ld. CIT(A) was also not represented by the assessee, which has resulted in passing exparte order. Therefore for no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has been able to show reasonable cause for the failure to comply with statutory notices issued u/s. 142(1) of the Act. Further the assessee has made reply to the final show cause notice with relevant materials and the assessing officer after considering the reply of the assessee, framed the assessment on 23.09.2022. Once the assessee has made compliance, though after some delay but it was well before the assessment order was framed, after considering the reply and documents filed by the assessee, then it does not fall in the category of non-compliance by the assessee at all. Hence, in the facts and circumstances of the case when the assessee finally complied with the notice and the Assessing Officer has duly considered the rep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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