NEETU NAYYAR,NEW DELHI vs. ACIT CIRCLE-20(2), NEW DELHI

Since, the identical issues are involved and the grounds of appeal being common for all the above six years i.e. from assessment years 2011-12 to 2016-17, for the sake of convenience, they are herewith addressed in a common order.

A notice u/s 153A of the Act was issued on 22.09.2017. A show cause notice was issued on 22.03.2018 fixing the case for 28.03.2018. Another notice u/s 153A was issued on 02.08.2016. Further, on 14.08.2018, a show cause notice was issued to the assessee and the case was fixed for hearing on 24.08.2018. On 30.08.2018, notice u/s 142(1) along with questionnaire were issued to the assessee and fixing the case for 10.09.2018. In compliance to the said notice, the assessee has filed copy of ITR only.

Notice u/s 142(1) was issued on 30.08.2018 fixing the hearing for 10.09.2018. Another notice u/s 142(1) dated 05.10.2016 was issued by the AO on 16.10.2016 on fixing the case for hearing on 25.10.2018. Since, there was no compliance to the notices issued, a penalty notice u/s 274 to 6200/Del/2019 3 Neetu Nayyar and Meena Nayyar was issued on 09.11.2018 fixing the case for 19.11.2018. Since there was no compliance on 19.11.2018 the AO levied penalty u/s 271(1)(b) of Rs.10,000/-.

During the hearing before us, the assessee has referred the letter dated 19.11.2018 filed before the Assessing Officer wherein the assessee explained that the notice fixing the hearing on 25.10.2018 has not been received. There has been a noting of the Assessing Officer on this letter as to why the notice was not received. Thus, the ld. AR explained that there has been compliance to the notice issued.

The ld. DR argued that there has been a spate on non- compliances before the AO and hence the penalty has been rightly levied.

Heard the arguments of both the parties and perused the material available on record.

The rationale of the AO to levy the penalty vide order dated 06.12.2018 was that nobody attended on 19.11.2018 in response to the show cause issued u/s 274, the facts on record prove that the assessee has indeed replied on 19.11.2018 and explained that the notice dated 16.10.2018 has not been received by them and there was a noting of the Assessing Officer on the letter. Thus, the observation of the Assessing Officer that there was no compliance to the show cause was contrary to the findings on the record. Hence, the penalty levied is liable to be obliterated. to 6200/Del/2019 4 Neetu Nayyar and Meena Nayyar 9. In the result, all the appeals of the assessees are allowed. Order Pronounced in the Open Court on 22/12/2020.