Penalty U/s 271(1)(b) Deleted – Non-compliance Excused Due to Reasonable Cause (Ignorance & Cash-based Livelihood

Gaddeppa Santhosh Vs ITO (ITAT Bangalore ) Bangalore ITAT deleted a penalty of ₹30,000 levied under Section 271(1)(b) for non-compliance with notices. The assessee, a pujari and astrologer with largely cash-based income, had failed to respond to multiple notices during reassessment proceedings initiated due to substantial cash deposits. The Tribunal observed that the assessee was not a regular taxpayer, lacked awareness of income tax procedures, and became aware of proceedings only after receiving a substantial demand. It also noted that the quantum addition itself had been restored to the A...