JASMINE CONTRACTORS P.LTD,NEW DELHI vs. ITO, WARD 1(3), FARIDABAD

We have heard arguments of both the sides from the penalty order we note that the Assessing Officer imposed penalty u/s. 271(1)(b) of the I.T Act 1961 (for short the ‘ Act’) of Rs. 10,000/- on account of non compliance of notice dated 24.09.2018 wherein the assessee was called to appear on 08.10.2018. From top para at page 2 of assessment order dated 06.12.2018 u/s. 143(3) of the Act for AY 2016-17 we note that the Assessing Officer mentioned about the issuance of said notice dated 24.09.2018 wherein date of hearing was fixed on 08.10.2018 and in the same para Assessing Officer noted that on 04.10.2018 the assessee company has filed copies of the bank book along with names of the share holder to whom shares were allotted during the year. In this back drop we are unable to agree with the conclusion of authorities below imposing and upholding penalty u/s. 271(1)(b) of the Act on the assessee for non compliance of notice dated 24.09.2018 which in fact was replied by the assessee four days before the fix date on 04.10.2018. Accordingly, sole grievance of assessee is allowed and the Assessing Officer is directed to delete the impugned penalty.

In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 04.08.2023.