Non-availability of record is reasonable cause for failure to comply with notice u/s 142(1)

Amita Rajvedi Vs DCIT (ITAT Allahabad)

Held that imposing penalty u/s. 271(1)(b) justified as necessary record impounded by the department was not supplied to the assessee, accordingly assessee failed to comply with the notice u/s. 142(1).

Facts-

The assessee is a practising Gynecologist. There was a survey under section 133A conducted on 11.9.2018 at the professional premises of the assessee. During survey operations, some papers and other material were impounded by the survey party. AO then issued show cause notice under section 274 r.w.s. 271(1)(b) of the Income Tax Act. AO passed the penalty orders under section 271(1)(b) whereby penalty was imposed on account of default / non-compliance of notice issued under section 142(1) of the Income Tax Act.

Conclusion-

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