Case Law Details
Ethnic Overseas (P) Ltd. Vs ITO (ITAT Delhi)
In the present case the AO passed the assessment order u/s 144 of the Act dated 11.12.2007 (PB-6) in which AO has mentioned Old address of the assessee. Sameold address is mentioned in the penalty order. The assessee, however, filed return of income for subsequent AY 2006-07 on 31.12.2006 in which assessee has mentioned new address. It is, therefore, clear that prior to completion of the assessment for assessment year under appeal, assessee had already reported new address to the Revenue Department. However, the AO for the reasons best known to him have sent the notices to the assessee at the old address. No attempt has been made to serve assessee at the new address. Therefore, there could not be any reason to believe that assessee had defaulted in making compliance to the notices.
Further, AO has recorded several dates on which notices have been issued to the assessee, but it is not mentioned in the penalty order as to for which default of notice penalty has been levied. In the absence of any specific charge against the assessee, it is difficult to accept that assessee would default to make any reply before the authorities below.
Considering all these facts and circumstances, assessee had a reasonable cause for failure to comply with the notices. Therefore, penalty is not leviable in the matter.
FULL TEXT OF THE ITAT JUDGEMENT
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