Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (6) TMI 382 - AT - Income TaxPenalty u/s 271(1)(b) - failure to sign on the so called "Consent Letter" which is not an authorized form notified by the Government - HELD THAT:- No penalty is imposable on the person for any failure referred to in the relevant penal provisions prescribed therein, including section 271(1)(b) of the Act, if the assessee proves that there was a reasonable cause for the said failure. It, thus, transpire that the imposition of penalty under section 271(1)(b) of the Act on account of alleged failure to comply with notice issued is not automatic. If there is a reasonable cause for such a failure, then, penalty is not at all imposable in terms of section 273B of the Act. In the context of section 273B of the Act, the expression "reasonable cause" has been explained to mean a cause which prevents a man of ordinary prudence and average intelligence, acting under normal circumstances, without negligence or inaction or want of bona fide. Hence, keeping in view, the details of the tax payment, investigation of the revenue, provisions of the act and the judicial pronouncement, we delete the penalty levied by the AO u/s 271 (1)(b). Assessee appeal allowed.
|