Non-Response To Notices: ITAT Reduces Penalty Citing Assessee’s Depression & Losses

Jayasakthi Knit Wear Vs ITO (ITAT Chennai) In the case of Jayasakthi Knit Wear Vs ITO, the Income Tax Appellate Tribunal (ITAT) Chennai addressed an appeal against the order of the Commissioner of Income Tax (Appeals) [CIT(A)], NFAC, Delhi, for the assessment year 2016-17. The primary issue was the confirmation of a penalty of ₹40,000 levied under Section 271(1)(b) of the Income Tax Act, 1961, due to the assessee’s failure to respond to four notices issued by the Assessing Officer (AO). The assessee claimed that the non-compliance was due to severe business losses and subsequent depression...