No Section 271B Penalty without Assessee’s Reasonable Opportunity to be Heard

Evermore Polymer Systems Ltd. Vs CIT (ITAT Mumbai) Evermore Polymer Systems Ltd. recently achieved a significant victory in its appeal against the imposition of a penalty under Section 271B of the Income Tax Act. The Income Tax Appellate Tribunal (ITAT) Mumbai, in its order dated August 25, 2023, emphasized that penalties should not be imposed without providing the assessee with a reasonable opportunity to be heard. 1. Background of the Appeal: Evermore Polymer Systems Ltd. appealed against an order issued by the National Faceless Appeal Centre (NFAC) dated March 21, 2023, under Section 250 of...