2012 (11) TMI 400

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....eding for the assessment year 2006-07. He ought to have to consider the fact, no proper notices were served to the assessees."   3. It was submitted by ld. A.R. of the assessee that the issue involved in the present case is covered in favour of the assessee by the Tribunal's decision rendered in the case of Shri Zunzabhai P. Patel vs. Assistant Commissioner of Income Tax in ITA No.3194/Ahd/2009 dated 31.05.2011 copy of which is available on pages 23 to 27 of the paper book and in particular our attention was drawn to para 6 of the Tribunal's order. He further submitted that in the present case also, the assessment order was completed by the A.O. u/s 143(3) of the I.T. Act and no addition has been made in the assessment order for wan....

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....andard Marcantile Co., 160 ITR 613 held that the absence of mensrea or failure of the Revenue to establish mensrea, are entirely irrelevant in penalty proceedings u/s 271(1)(b) of the Act. In the case under consideration, we find that the ld. CIT(A) upheld the levy of penalty for default in complying with notices issued on 27.09.2007 & 21.7.2008 on the ground that there was no reasonable cause. The assessee explained before the ld. CIT(A) that first notice issued on 27.9.2007 intimated that the case was selected for scrutiny. Sri Kiranbhai Shah, A.R. of the appellant, attended the hearing. He had been informed that this was formal notice for hearing and the AO did not mark his attendance. The ld. CIT(A) did not verify these submission....