Assessee appeals successful, penalties deleted for non-compliance in assessment years. Proper recording crucial for fair assessments.

The Tribunal allowed all appeals of the assessee, directing the deletion of penalties for non-compliance in various assessment years. The Tribunal emphasized the importance of proper recording of compliance and satisfaction before levying penalties, ensuring fairness in the assessment process.

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Issues:
- Validity of penalty under Section 271(1)(b) for AY 2013-14 to 2016-17
- Validity of penalty under Section 272A(1)(d) for AY 2017-18 to 2019-20

Analysis:

Validity of penalty under Section 271(1)(b) for AY 2013-14 to 2016-17:
The appellant challenged the penalty levied under Section 271(1)(b) for non-compliance of a notice under Section 142(1) of the Income Tax Act. The Assessing Officer initiated the penalty citing non-compliance with the notice, leading to the appellant filing an appeal before the ld. CIT(A). The ld. CIT(A) upheld the penalty, considering the appellant a habitual defaulter. However, the appellant argued that full compliance was made during assessment, and the penalty lacked a cause of action as no variation was made in the returned income. The appellant also cited multiple decisions supporting their argument that subsequent compliance in assessment proceedings negated earlier defaults. The Tribunal agreed, noting that the penalty was levied before the assessment order, and there was no reference to non-compliance in the order. The Tribunal found that the appellant's compliance was sufficient, leading to the direction to delete the penalty.

Validity of penalty under Section 272A(1)(d) for AY 2017-18 to 2019-20:
For AY 2017-18 to 2019-20, the Assessing Officer levied penalties under Section 272A(1)(d) for alleged non-compliance of a notice, which was not referred to in the assessment order. The Tribunal, observing the similarity between Section 272A(1)(d) and Section 271(1)(b), deleted the penalties for these years as well. The principle of consistency was applied in deleting the penalties under Section 272A(1)(d) for both years.

In conclusion, the Tribunal allowed all appeals of the assessee, directing the deletion of penalties for non-compliance in various assessment years. The Tribunal emphasized the importance of proper recording of compliance and satisfaction before levying penalties, ensuring fairness in the assessment process.

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