M/S TIME BOUND CONTRACTS PVT. LTD.,,NEW DELHI vs. ITO, NEW DELHI

The issue raised in the present appeal is against the levy of penalty u/s 271(1)(b) of the Act.

Briefly in the facts of the case the assessment was completed in the case of the assessee u/s 153C/143(3) of the Act. Thereafter, penalty proceedings u/s 271(1)(b) r.w.s 274 of the Act were initiated for non-appearance on three dates of hearing. The assessee failed to furnish any information for non- compliance of notice and hence, penalty of Rs.10,000/- was imposed to the assessee. The CIT(A) upheld the levy of penalty u/s 271(1)(b) of the Act rejecting the plea of the assessee. The assessee is in appeal before us with regard to levy of penalty u/s 271(1)(b) of the Act.

The Ld.AR for the assessee pointed out that similar penalty was levied for Assessment Years 2005-06, 2010-11 & 2012-13 in assessee’s own case which has been deleted by the Tribunal vide its order dated 07.01.2020. The assessment was completed u/s 143(3) & 153C of the Act on similar dates and penalty can be cancelled on appeal also.

We find merit in the plea of the assessee in this regard. On the perusal of the Tribunal’s order in assessee’s own case for Assessment Years 2005-06, 2010-11 & 2012-13 vide order dated 07.01.2020, we find that similar default of non-appearance has been noted by the Tribunal and the penalty levied u/s 271(1)(b) of the Act has been cancelled in the respective years. Following the same parity of reasoning, we delete the penalty levied u/s 271(1)(b) of the Act.

In the result, the appeal of the assessee is allowed.