Loading judgment…
Facts
The assessee is aggrieved by an order imposing a penalty of Rs. 20,000/- under Section 271(1)(b) of the Income Tax Act for non-compliance with notices. The penalty was levied due to the assessee's failure to respond to notices issued during assessment proceedings under Section 147 read with Section 144.
Held
The Tribunal acknowledged the non-compliance of the assessee but, considering the trivial nature of the issue and the penalty amount, agreed with both parties that a reduced penalty would meet the ends of justice. The penalty of Rs. 20,000/- was reduced to Rs. 10,000/- to bring finality to the litigation.
Key Issues
Whether the penalty imposed under Section 271(1)(b) for non-compliance with notices is justified, and if so, whether the quantum of the penalty should be reduced.
Sections Cited
253, 1961, 147, 144, 271(1)(b), 142(1), 139(1), 271F, 246A, 7(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: DR. MANISH BORAD & SHRI PARESH M JOSHI
In view of the aforesaid, the “Impugned Order” whereby the penalty of Rs.20,000/- is confirmed is reduced to Rs.10,000/-.
In the result, appeal of the assessee is partly allowed.