| Question And Answer | |
|---|---|
| Subject: | default u/s 271(1)(b) |
| Category: | Income-Tax |
| Querist: | pawan |
| Answered by: | Advocate Neelam Jadhav |
| Tags: | 271(1)(b), penalty |
| Date: | March 18, 2024 |
There is default u/s 271(1)(b) . The assessment was completed u/s 147 r.w.s 144B. Apart from the reasonable cause for did not respond to the notices issued since the assessment has been ccompleted u/s 147 r.w.s 144B , penalty u/s 271 (1)(b) is not leviable. Please give case laws of court/ITAT on the point.
S. 273B provides that, inter alia, penalty u/s. 271(1)(b) need not be imposed, if it is proved that there was a reasonable cause for the said failure of the assessee to comply with the provisions of section 271(1)(b).
In the case of Balram Kumar Mahendra vs. ITO [2012] 12 ITR (T) 426 (Delhi)(Trib.) held that it was found, that non-appearance of the assessee before the Assessing Officer was caused by non-receipt of the notice. This, it is held, can be construed as reasonable cause u/s.273B for non-compliance by the assessees. Under such circumstances, rigors of penalty u/s. 271(1)(b) are not attracted.