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Income Tax Appellate Tribunal, KOLKATA ‘D’ BENCH, KOLKATA
Before: Sri J. Sudhakar Reddy & Sri S.S. Viswanethra Ravi]
Date of concluding the hearing : October 16th, 2018 Date of pronouncing the order : December 19th, 2018 O R D E R Per S.S. Viswanethra Ravi, JM :-
This appeal filed by the assesse is directed against the order of the ld. Commissioner of Income Tax (Appeals) - 6, Kolkata, (hereinafter the ‘ld. CIT (A)’), passed u/s 250 of the Income Tax Act, 1961 (the ‘Act’), dt. 30/08/2017, for the Assessment Year 2013-14.
After hearing rival contentions, we find that the sole issue that arises for adjudication in this appeal is the levy of penalty u/s 271(1)(b) of the Act. 2.1 The Assessing Officer levied this penalty on the ground that the assessee did not comply with the statutory notice u/s 143(2) and 142(1) of the Act, on 05/03/2015. We find that the assessment order was ultimately passed u/s 143(3) of the Act. The issue whether the penalty u/s 271(1)(b) of the Act, can be sustained when the assessment order has ultimately been passed u/s 143(3) of the Act.
Assessment Year: 2013-14 Partha Chatterjee 3. This issue is covered in favour of the assessee and against the revenue by the decision of the Akhil Bhartiya Prathmik Shmshak Sangh Bhawan Trust vs. ADIT; [2008] 115 TTJ 429, wherein it has been held as follows:- “Section 271(1)(b) of the Income-tax Act, 1961 - Penalty - For Non-Compliance of Notice under Section 143(2) - Where assessee had not complied with notice under section 142(1) but assessment order was passed under section 143(3) and not under section 144, that meant that subsequent compliance in assessment proceedings was considered as good compliance and defaults committed earlier were ignored by Assessing Officer and, therefore levy of penalty under section 271(1)(b) was not justified” 3.1. Respectfully following the same, we delete the penalty imposed u/s 271(1)(b) of the Act and allow this appeal of the assessee.
In the result, appeal of the assessee is allowed.