Tribunal Overturns Penalties for Lack of Notice Service

The Tribunal allowed all seven appeals by the assessee, setting aside the penalty imposed under section 271(1)(b) of the Act due to lack of evidence of proper notice service. The decision in the first appeal regarding notice service was applied to the remaining six appeals, resulting in a favorable outcome for the assessee in all cases.

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Issues involved:
Appeals against common order dated 02.05.2017 passed by CIT(A)-3, Nagpur for assessment years 2002-03 to 2008-09.

Detailed Analysis:

Issue 1: Penalty imposed u/s 271(1)(b) of the Act
- The assessee, a company subjected to search, faced penalty proceedings for non-compliance with notices.
- Assessing Officer initiated proceedings under section 153C by issuing notices, including one under section 271(1)(b) for non-response to earlier notices.
- CIT(A) confirmed the penalty based on remand report stating notices were issued to an individual associated with the assessee.
- Assessee argued no notices were served, citing a tribunal's order in a similar case where penalties were deleted due to improper notice service.
- Tribunal found no evidence of proper notice service to the assessee, following the precedent to set aside the penalty confirmed by CIT(A).

Issue 2: Applicability to other appeals
- Decision on the first appeal applied mutatis mutandis to six other appeals by the assessee for assessment years 2003-04 and 2008-09.
- All seven appeals were allowed based on the findings in the initial appeal.

In conclusion, the Tribunal allowed all seven appeals by the assessee, setting aside the penalty imposed under section 271(1)(b) of the Act due to lack of evidence of proper notice service. The decision in the first appeal regarding notice service was applied to the remaining six appeals, resulting in a favorable outcome for the assessee in all cases.

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