2024 (8) TMI 930

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....nt, vide their order dated 16.02.2023. 2. The grounds of appeal raised by the Ld. AR are as under: 1. On the facts and in the circumstances of the case and in law, that the ld. CIT(A) has erred in sustaining the penalty of Rs. 20,000/- imposed by the ld. AO u/s 272A(1)(d) for non-compliance of notices/questionnaires issued u/s 142(1). 2. The appellant craves leave, to add, urge, alter, modify or withdraw any grounds before or at the time of hearing. 3. Briefly stated, the assessee is an individual, have filed her Return of Income (ROI) on 05.09.2020, which was processed u/s 143(1). The case of the assessee was selected for limited scrutiny under the 'CASS'. Accordingly, notice u/s 142 of the Act was issued and duly served upon the ass....

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....should not be made. No response was furnished by the assessee, therefore, a further notice in this regard was issued to the assessee on 30.01.2023, to which a response is filed by the assessee contending that she has filed an appeal before the Ld. CIT(A), and therefore, request to wait for disposal of the case from the said authority. Ld. AO verified details available on record and found that the assessee has filed an appeal before the Ld. CIT(A), however, she has not raised any ground in respect of initiation of penalty proceedings u/s 272A(1)(d) of the Act. In this situation, a further notice was issued to the assessee asking her to show cause as to why penalty u/s 272A(1)(d) of the Act should not be imposed, however assessee had again fi....

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....ce and ordinary prudence. It can be described as probable cause. It means an honest belief founded upon reasonable grounds, of the existence of a state or circumstances, which assuming them to be true, would reasonably lead any ordinary prudent and cautious man, placed in the position of the person concerned, to come to the conclusion that the same was the right thing to do. The cause shown has to be considered. The word 'reasonable' has in law the prima facie meaning of reasonable with regard to those circumstances of which the actor, called on to act reasonably, knows or ought to know. The reasonable cause can be reasonably said to be a cause which prevents a man of average intelligence and ordinary prudence, acting under normal c....

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....completed u/s 143(3), penalty u/s 271(1)(c) could not be levied - Held, yes [Para 16] [In favour of assessee] 6. Backed by aforesaid submissions and the ration of decision from the aforesaid case laws, wherein it is held that, in a circumstance when an assessment has been completed u/s 143(3) of the Act, the Ld. AO is deemed to have condoned the absence of the assessee or his authorized representative on earlier occasions when subsequently, the details were furnished by him and the assessments were ultimately completed u/s 143(3) of the Act. Therefore, penalty for non-compliance at certain occasions cannot be made. Ld. AR requested to delete the penalty. 7. On the contrary, Ld. Sr. DR on behalf of the revenue have vehemently supported the....