Question And Answer
Subject: default u/s 271(1)(b)
Querist: pawan
Answered by:
Tags: ,
Date: March 18, 2024
Query asked by pawan

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.

File Uploaded: Not Available

Answer given by

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.

Disclaimer: This article is only for general information and is not intended to provide legal advice. Readers desiring legal advice should consult with an experienced professional to understand the current law and how it may apply to the facts of their case. Neither the author nor and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this article nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of

Leave a Reply

Your email address will not be published. Required fields are marked *