2014 (1) TMI 1714

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....essing Officer in imposing the penalty of Rs. 10,000/- u/s 271(1)(b) of the Income Tax Act for non-compliance of notice u/s 142(1) dated 19.11.2012 for compliance due on 26.11.2012. 3. In this case the AO levied the penalty u/s. 271(1)(b) holding as under:- "During the course of assessment proceedings, notice u/s 142(1) of the I. T. Act, 1961, along with questionnaire were issued on 19.11.2012 fixing the case for 26.11.2012. On 26.11.2012 neither anybody attended nor requisite information/details were filed. In this connection, a show cause notice for imposing penalty u/s 271(1)(b) dated 07/12/2012 has been issued to your. However in the compliance of above show cause notice reply dated 26/12/2012 is received at the Dak counter vide whic....

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.... by the AO on 19.11.2012. In the said notice, AO noted that the assessee has failed to comply with the notice u/s. 142(1) of the I.T. Act dated 19.11.2012. Referring to this notice, Ld. Counsel of the assessee submitted that the penalty has not been levied for non-compliance of notice under section 142(1) dated 19.11.2012. Thus, he submitted that AO has not assumed proper jurisdiction and hence, he submitted levy of penalty is not justified. He further submitted that penalty has been levied for noncompliance of a notice whereby AO merely gave a notice of 7 days and had sought the assessee's response. Hence, he submitted that the AO has not provided proper opportunity and in this view also he submitted that penalty cannot be levied. Ld. Coun....

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....e assessment order, it is evident that the notice under section 142(1)/143(2) dated 8.11.2010 alongwith the detailed questionnaire was issued fixing the case for 18.11.2010. These details have been mentioned by the Assessing Officer in paragraph 2 page 1 of the assessment order. Thus, total ten days' time was allowed from the date of issue of the notice. In the assessment order, the Assessing Officer has not mentioned the date on which such notice was served upon the assessee. Therefore, in our opinion, the time of less than ten days allowed by the Assessing Officer for complying with the detailed questionnaire cannot be said to be a sufficient time being allowed to the assessee and, therefore, failure of the assessee to comply with such no....