No Penalty U/S 271(1)(b) for Non-Compliance During Covid-19 Due to Reasonable Cause

Radha Soni Vs ITO (ITAT Agra) Conclusion: Penalty imposed under section 271(1)(b) for non-compliance with a notice during the Covid-19 pandemic was deleted due to disruptions caused by lockdowns during outbreak of Covid-19 Pandemic and the Supreme Court’s extension of limitation periods. Held: Assessee, was reassessed for the 2014-15 assessment year by AO under section 147 read with section 144. AO issued a notice under section 142(1) requesting information, but assessee did not comply. AO initiated penalty proceedings under section 271(1)(b). Despite several opportunities, assessee failed t...