ITAT Deletes Section 272A(1)(d) Penalty as Acute Depression Constituted Reasonable Cause

Ajaz Alam Vs Assessment Unit (ITAT Lucknow) The Lucknow Bench of the Income Tax Appellate Tribunal (ITAT) deleted a penalty of ₹20,000 imposed under Section 272A(1)(d) of the Income-tax Act for non-compliance with notices issued under Section 142(1). The assessee had failed to respond to two statutory notices during reassessment proceedings, leading the Assessing Officer to levy the penalty. Before the Tribunal, the assessee contended that he was suffering from acute depression during the relevant period, which prevented him from complying with the notices. The Tribunal observed that althoug...