ITAT Chennai Remands Penalty Case for Review Despite Appellant’s Negligence

Muthusamy Vs ITO (ITAT Chennai) The Income Tax Appellate Tribunal (ITAT), Chennai, in the case of Muthusamy vs. ITO, addressed an appeal challenging the imposition of a Rs. 1.50 lakh penalty under Section 271B of the Income Tax Act. The penalty was upheld by the Commissioner of Income Tax (Appeals) [CIT(A)] as the assessee failed to provide any explanation during the appellate proceedings. The assessee’s representative requested an additional opportunity to present their case, which was opposed by the Revenue. Despite acknowledging the assessee’s negligence in the matter, the ITAT deci...