Section 271(1)(b): ITAT Upholds Penalty for Assessee’s Willful Disobedience

Ishoo Narang Vs ACIT (ITAT Hyderabad) Income Tax Appellate Tribunal (ITAT) of Hyderabad upheld a penalty imposed on Ishoo Narang due to deliberate and willful disobedience non-compliance of notice under section 271 of the Income Tax Act. Analysis: In this case, Ishoo Narang, an individual and director of two companies, failed to respond to notices from the Assessing Officer (AO) under sections 142(1) and 271(1)(b) of the Act. Despite several opportunities, Narang did not file any reply, leading the AO to impose a penalty of Rs. 10,000. Narang argued that the failure was due to circumstances be...