Penalty u/s 271(1)(b) not leviable for non-compliance to statutory notice as notice not serviced correctly

Simple Singh Vs ITO (ITAT Delhi)

ITAT Delhi held that as the statutory notice was not served to the correct address, penalty under section 271(1)(b) of the Income Tax Act cannot be levied alleging the non-compliance of the statutory notices.

Facts-

During the course of assessment proceedings, the Assessing Officer [“AO”] issued statutory notices u/s 142(1) of the Act and also issued show cause notice u/s 271(1)(b) of the Act, against the non-compliance of the statutory notices. Thereafter, the AO levied penalty u/s 271(1) (b) of the Act amounting to Rs. 10,000/- to the assessee.

Aggrieved against this, the assessee is in appeal before Ld.CIT(A), who also sustained the penalty. Aggrieved against the order of Ld.CIT(A), the assessee is in appeal before this Tribunal.

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