| Question And Answer | |
|---|---|
| Subject: | Penalty u/s 271(1)(b) |
| Category: | Income-Tax |
| Querist: | ANKUR AGRAWAL |
| Answered by: | Advocate Neelam Jadhav |
| Tags: | penalty, penalty u/s 271(1)(b) |
| Date: | July 27, 2021 |
There is default u/s 271(1)(b) . The assessment was completed u/s 143(3). Apart from the reasonable cause for non appearing legal ground in appeal is that since the assessment has been completed u/s 143(3) , penalty u/s 271 (1)(b) is not leviable. Please give case laws of court/ITAT on the point.
In Chandrawati Gupta v. ACIT (2017) 51 CCH 177 (Delhi)(Trib.) held that the assessee had disclosed reasonable cause for failure to comply with statutory notice and on same reasoning, CIT(A) should cancel penalty levied on assessee.
In Heman Kumar Soni. v. Dy. CIT (2017) 49 CCH 350 (Indore)(Trib.) held that, No penalty can be levied if assessments have been completed u/s 143(3) and there is subsequent compliances in assessment proceedings was considered as good compliances. Levy of penalty u/s 271(1)(b) was deleted .
In Manu Rai (Smt.) v. Dy. CIT (2020)82 ITR 22 (SN)(Indore) (Trib) held that having failed to appear on the initial date of hearing, subsequently complied with the notice issued under S. 142(1) on subsequent dates. Based on the Compliances the assessments were completed . None of these assessments were ex- parte. Accordingly the penalty levied was deleted