Penalty for non-compliance with income-tax notices fails where replies show compliance with section 142(1) notices.

Penalty under section 271(1)(b) was not attracted because the assessee had filed replies and the record showed compliance with the section 142(1) notices dated 07.10.2016, 31.10.2016 and 08.11.2016. As the levy depends on failure to comply with a valid notice, the factual foundation for penalty was absent, and the penalty was deleted.

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Issues: Whether penalty under section 271(1)(b) of the Income-tax Act, 1961 was leviable for alleged non-compliance with notices issued under section 142(1) of the Income-tax Act, 1961.

Analysis: The assessee had filed replies to the notices issued under section 142(1), and the record showed compliance to the notices dated 07.10.2016, 31.10.2016 and 08.11.2016. Since penalty under section 271(1)(b) is attracted only on failure to comply with a notice under section 142(1), the factual foundation for levy of penalty was not made out.

Conclusion: The penalty was not leviable and was deleted.

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