Penalty u/s 271(1)(b) not leviable if reasonable cause shown by Assessee

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 emai...