Penalty for non-compliance with statutory notices deleted where assessment was remanded for fresh consideration and justice required interference.

Penalty for alleged non-compliance with statutory notices under section 272A(1)(d) of the Income-tax Act, 1961 was deleted because the Tribunal found the assessment itself had already been restored to the Assessing Officer for de novo consideration and the assessee's overall conduct warranted interference in the interests of justice. The ruling treats the penalty as unsustainable in the circumstances, as the underlying assessment proceedings were still open for fresh examination and the factual matrix did not justify maintaining the penal order.

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Issues: Whether the penalty imposed for non-compliance with statutory notices under section 272A(1)(d) of the Income-tax Act, 1961 was liable to be sustained.

Analysis: The penalty had been imposed for alleged failure to comply with notices issued during assessment proceedings. The Tribunal noted that the quantum assessment had already been restored to the Assessing Officer for de novo consideration. It also took into account the assessee's overall conduct and found that the circumstances justified interference with the penalty order in the interests of justice.

Conclusion: The penalty was deleted and the issue was decided in favour of the assessee.

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