Case Law Details
Devnadi Advisory Pvt. Limited Vs ITO (ITAT Kolkata)
In a recent Income Tax Appellate Tribunal (ITAT) case in Kolkata, Devnadi Advisory Pvt. Limited Vs ITO, the tribunal deleted the penalty charged for non-compliance with the notice under section 271B of the Income Tax Act. This ruling highlighted that not all apparent non-compliance of notice is deliberate.
Case Analysis: The assessee, Devnadi Advisory Pvt. Limited, appealed against the decision by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, which confirmed a penalty of Rs. 20,000 imposed by the Assessing Officer under section 271B of the Income Tax Act.
The Assessing Officer had issued two notices to the assessee, dated 14.03.2022 and 19.02.2022. The penalty was imposed due to the assessee’s failure to comply with these notices.
The assessee contended that the first notice was not served upon them and the second notice was complied with, thus opposing the penalties. The assessee’s appeal to the CIT(Appeals) was dismissed without consideration of these points.
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