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2025 (3) TMI 716 - AT - Income Tax


In the case before the ITAT Delhi, the appeal concerns the levy of a Rs. 10,000 penalty under Section 271(1)(b) of the Income Tax Act, 1961, due to the assessee's non-compliance with a notice issued under Section 142(1). The assessee, an Engineering Consultant, initially failed to comply with the notice sent via email but later ensured compliance, leading to the completion of the assessment under Section 143(3). The Senior Departmental Representative argued for the penalty's imposition, citing the assessee's tactical non-compliance to avoid investigation.The Tribunal referenced the Supreme Court's decision in Hindustan Steel Ltd. 83 ITR 26, emphasizing that penalties for statutory non-compliance are quasi-criminal and should not be imposed unless there is deliberate defiance of law or contumacious conduct. The Tribunal found no evidence of such conduct by the assessee, noting subsequent compliance with statutory notices. Consequently, the Tribunal set aside the impugned order and deleted the penalty, allowing the appeal in favor of the assessee. The decision was pronounced on March 12, 2025.

 

 

 

 

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