Income Tax Penalty u/s 271(1)(b) for Multiple Defaults Reduced to One: ITAT Limits Levy to Rs. 10,000

In a recent ITAT ruling, the tribunal held that multiple defaults under Section 271IIB of the Income Tax Act warrant only a single penalty. The levy was limited to ₹10,000, aligning with statutory limits and promoting fairness. This decision underscores the need for proportional penal action and serves as a relief to taxpayers facing aggregated penalties due to technical non-compliances. (Taxscan)