M/S. SHANKER FUELS PVT. ,KOLKATA vs. ACIT,C.C-3(1),KOLKATA. , KOLKATA

We have heard the ld. D/R and perused the material placed before us. The sole grievance of the assessee is against the finding of the 2 Assessment Year: 2015-16 M/s. Shanker Fuels Pvt. Ltd. ld. CIT(A) confirming the levy of penalty of Rs.10,000/- u/s 271(1)(b) of the Act levied by the Assessing Officer for not complying to the notice issued u/s 142(1) of the Act even when the assessment u/s 153A/143(3) of the Act has already been completed.

We find that though the assessee in the instant case has not complied to the statutory notice u/s 142(1) issued by the AO on 10/11/2017, which is the basis for levy of penalty u/s 271(1)(b) of the Act, however, ultimately the assessment order has been passed u/s 153A/143(3) of the Act. The Assessing Officer has also acknowledged that the assessee replied stating the reasons for such non-compliance, which we find are reasonable. Under these given facts and the circumstances, this issue is no more res-integra by the decision of various Coordinate Benches of the Tribunal wherein it has been held that where the assessment order was finally passed u/s 153A/143(3) or 143(3) and not u/s 144 of the Act due to subsequent compliance during the assessment proceedings, that would be considered as good compliance and the defaults committed earlier should be ignored and taking a lenient view the penalty u/s 271(1)(b) of the I.T. Act 1961 should not be levied. Since the assessment in the instant case has ultimately been completed u/s 153A/143(3) of the Act on the basis of various details filed by the assessee before the AO, therefore, considering the totality of the facts of the case and relying on the decision of the Tribunal in the case of Co-ordinate Bench at Delhi in ITA no. 6203 & 6204/Del/2019 Shiv Kumar Nayyar vs. ACIT. We are of the considered opinion that it is not a fit case for levy of penalty u/s 271(1)(b) of the Act. We, therefore, set aside the order of the Ld. CIT(A)

In the result, appeal of the assessee is allowed. Order pronounced in the Court on 19th February, 2024 at Kolkata. (ANIKESH BANERJEE) ACCOUNTANT MEMBER

""यथ" / The Respondent 3. संबंिधत आयकर आयु" / Concerned Pr. CIT 4. आयकर आयु" अपील ( ) / The CIT(A)- 5. िवभागीय "ितिनिध ,आयकर अपीलीय अिधकरण, कोलकाता/DR,ITAT, Kolkata, 6. गाड" फाई/ Guard file.