Case Law Details
Nirav J. Ravani Sanghavi Vs DCIT (ITAT Rajkot)
ITAT Rajkot held that as notices were served to e-mail ID of old income tax practitioner of the assessee, assessee was not aware of the issuance of the same and hence didn’t replied. Held that penalty u/s 271(1)(b) of the Income Tax Act cannot be imposed when assessee proves that there was reasonable cause for the failure.
Facts- The main issue here is that AO initiated penalty proceedings u/s 271(1)(b) of the Income Tax Act against the assessee for non-compliance of 142(1) notice.
The assessee contended that all the notices of hearing were emailed to “[email protected]” which email account pertain to the former Authorized Representative and Income Tax Practitioner (ITP) of the assessee namely Mr. Divyesh Doshi, in whose place the assessee had appointed another Tax Professional for all the assessment proceedings. The assessee, however, by oversight failed to update the email address of the newly appointed Tax Consultant to the Assessing Officer.
CIT(A) confirmed the levy of penalty u/s 271(1)(b) and dismissed the appeals filed by the assessee. Being aggrieved, the present appeal is filed.
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