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TMI Blog2024 (8) TMI 737X X X X Extracts X X X X X X X X Extracts X X X X ..... e impugned penalty order. The contention of the AR has been limited to the extent that the notices which are subject matter of present penalty proceedings have been substantially complied with though after the passing of the penalty order and the same therefore be considered. Penalty levied u/s 272A(1)(d) is herby directed to be deleted. Assessee appeal allowed. - SHRI. AAKASH DEEP JAIN, VP SHRI. VIKRAM SINGH YADAV, AM For the Appellant : Shri Jaspal Sharma, Advocate For the Respondent : Shri Dharam Vir, JCIT, Sr. DR Order PER VIKRAM SINGH YADAV, A.M. : This is an appeal filed by the Assessee against the order of the Ld. CIT(A), NFAC, Delhi, sustaining the levy of penalty under section 272A(1)(d) amounting to Rs. 50,000/-. 2. Brief facts of the case are that the assessee filed its return of income on 31/10/2017 declaring net loss of Rs. 92,54,370/-. The case of the assessee was selected for scrutiny through CASS and notice under section 143(2) was issued by ITO, W-1(1), Nangal and thereafter the case of the assessee was transferred to ITO, W-4(1), Chandigarh. Thereafter statutory notices under section 143(2) and 142(1) were issued. In view of non compliance to certain statutory n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce to the said notice and in any case, no specific information / documentation was called for and which was not supplied by the assessee and therefore, there is no basis for levy of penalty in respect of these two notices. 5.4 Regarding the 4th notice dt. 03/09/2019 issued under section 142(1) of the Act, it was submitted that in the said notice, the assessee was called upon to furnish certain information / documentation and as the record of the assessee was taken over by one of the Directors of the assessee company who became hostile and shifted to Amritsar, an adjournment was sought seeking time to provide the relevant information. It was further submitted that even the information so called for was quite voluminous in nature and same would have required time, therefore an adjournment was sought for the first week of October. It was accordingly submitted that there was no fault on the part of the assessee for not to comply with the notice under section 142(1) and the same was complied with in as much as the adjournment was sought for the reasons which were beyond the control of the assessee. In this regard it was further submitted that this was the first time, the information was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at it is a case where the assessment order has been passed u/s 144 and not u/s 143(3) of the Act and therefore, the assessee company cannot take benefit of subsequent compliance to the notices as even the subsequent compliance by the assessee company has not been found fully acceptable to the AO, leading him to passing of the best judgment assessment order in absence of requisite information/documentation submitted by the assessee company. 7. We have heard the rival contention and perused the material available on the record. The AO has levied the penalty for non-compliance on part of the assessee to five specific notices issued during the course of assessment proceedings, it would therefore be relevant to refer to each of these notices, the information called for and the compliance thereof, if any and the explanation so furnished by the assessee in case of non-compliance. 7.1 As far as the first three notices issued under section 143(2) dt. 09/08/2018, 27/09/2018 and 28/09/2018 are concerned, we find that these were statutory notices issued by the AO to comply with the statutory mandate of informing the assessee that its case has been selected for scrutiny. Besides that no informa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specific information / documentation from the assessee. In response to the notice dt. 03/09/2019, the assessee submitted its reply stating that one of its Director, Shri Ashish Arora has become hostile and shifted to Amritsar and is not cooperating to provide the desired information and therefore, the time was sought to collate the desired information/ documentation which was voluminous in nature. In the said submission, the assessee sought time till first week of October to furnish the necessary information / documentation however without acceding to the said request, the AO again issued a notice dt. 20/09/2019 seeking necessary compliance by 25/09/2019 and in response to the said notice, the assessee again sought an adjournment for the reason stated earlier that one of its Directors has become hostile and therefore, time is required to collate the voluminous information. 7.6 It is further noted that subsequently, the assessee collated the information/documentation and did supply the necessary information and documentation in response to the said two notices as evident from the response filed on 26/11/2019 which has been placed as part of the assessee s paper book pages 25 to 27, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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