"NFAC Passed Perverse Order Stating Wrong Penalty Amount & Ignoring S.273B Safeguards": ITAT Deletes Penalty u/s 271(1)(b)

The Income Tax Appellate Tribunal (ITAT) has deleted a penalty imposed under Section 271(1)(b) of the Income Tax Act, finding that the National Faceless Assessment Centre (NFAC) passed a "perverse order" stating a wrong penalty amount and ignoring the safeguards of Section 273B. Section 271(1)(b) relates to penalties for non-compliance with notices. The ITAT's strong condemnation of the NFAC's order highlights serious procedural flaws and a disregard for statutory provisions. Section 273B provides circumstances where no penalty is imposable if there is a reasonable cause for failure. This ruling underscores the importance of reasoned orders and adherence to legal safeguards by tax authorities, providing significant relief to the assessee.