Section 271(1)(b) Penalty Quashed Due to Misapplication of Law & Facts

Rishikesh Pandey Vs ITO (ITAT Raipur) Income Tax Appellate Tribunal (ITAT) Raipur has set aside a penalty of Rs. 10,000 imposed on Rishikesh Pandey by the Assessing Officer (AO) under Section 271(1)(b) of the Income Tax Act, 1961. The penalty was initially levied for alleged non-compliance with a notice issued under Section 142(1) during assessment proceedings for the Assessment Year 2016-17. The ITAT’s decision, pronounced on June 26, 2025, overturned an order by the National Faceless Appeal Centre (NFAC), Delhi, which had upheld the penalty. Background of the Case The case originated when ...