Appeal allowed: Penalty under section 271(1)(b) overturned for non-compliance with notices

The tribunal allowed the appeal, ruling that the penalty under section 271(1)(b) for non-compliance with notices was unwarranted. Despite initial non-cooperation, the assessee eventually submitted all required details, leading to the penalty's deletion. The tribunal considered the assessee's overall cooperation and deemed the non-compliance as technical, ultimately overturning the penalty imposed by the Assessing Officer and upheld by the ld. CIT (A).

---

---

Issues:
Penalty under section 271(1)(b) for non-compliance of notices issued by the Assessing Officer.

Analysis:
The appeal was filed against the penalty order under section 271(1)(b) for the assessment year 2012-13. The Assessing Officer had levied a penalty of &8377; 10,000 for non-compliance with notices issued to the assessee. The ld. CIT (A) upheld the penalty order citing non-cooperation by the assessee due to non-compliance with the notices. The assessment was completed under section 143(3) with the revised return of loss being accepted after various interactions with the assessee's representatives. The Assessing Officer acknowledged the submission of necessary details and the acceptance of the revised loss amount. The assessee contended that the time provided for compliance was insufficient and the questionnaire was not specific, leading to delayed compliance. However, all required details were eventually submitted and accepted by the Assessing Officer. The tribunal observed that although there were instances of non-compliance, the overall participation and submission of details by the assessee indicated a cooperative approach. Therefore, the tribunal deemed the penalty for non-compliance as technical and venial, leading to the deletion of the penalty imposed by the Assessing Officer and confirmed by the ld. CIT (A).

In conclusion, the tribunal allowed the appeal of the assessee, emphasizing that the penalty under section 271(1)(b) for non-compliance with a specific notice was unwarranted given the subsequent submission and acceptance of all required details by the assessee. The tribunal considered the overall conduct of the assessee in participating in the proceedings and providing necessary information, leading to the deletion of the penalty.

---