ITAT Delhi Deletes Section 271(1)(b) Penalty for Mere Technical Non-Compliance

Jarul Glasswork Private Limited Vs ITO (ITAT Delhi)

The issue before the Tribunal is levy Penalty of ₹10,000 levied u/s 271(1)(b) for alleged non-compliance with a notice u/s 142(1). Assessee argued that he had complied with notices issued on 13.07.2018 (responded on 18.08.2018) and 21.08.2018 (responded on 04.10.2018). Show-cause notice dated 24.09.2018 was also complied with on 04.10.2018.  No second show-cause or opportunity was given before levying the penalty on 20.03.2019. Penalty was imposed despite assessment being completed u/s 143(3), indicating substantive compliance.

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