CIT (A) Fails to Provide Evidence of Notice Served: ITAT deletes Penalty u/s 271 (1) (b) of Income Tax Act

The Delhi bench of the Income Tax Appellate Tribunal (ITAT) overturned the penalty imposed under Section 271(1)(b) of the Income Tax Act for non-compliance with a notice under Section 142(1). The tribunal noted that the Commissioner of Income Tax (Appeals) failed to demonstrate that the notice was served on the assessee. 

Despite the assessee updating their address, notices were sent to the old address. The tribunal observed that the penalty was sustained on the grounds of non-notification of address change, disregarding that returns for relevant assessment years mentioned the new address. 

Given the absence of proof of notice service, ITAT concluded that the penalty for non-compliance was unwarranted and ruled in favor of the assessee.