Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Penalty u/s 272A(1)(d) of Income Tax Cannot Be Imposed for Non-Compliance with Notices Due to Consultant’s Failure to Inform: ITAT deletes Penalty
The ITAT deleted a penalty under Section 272A(1)(d) of the Income Tax Act, imposed for non-compliance with notices issued under Section 142(1). The assessee's non-compliance resulted from their tax consultant’s failure to inform them about the notice. The assessee argued they were unaware of the notice due to their consultant’s negligence. The Tribunal accepted the explanation, citing reasonable cause and lack of intent to evade compliance. The penalty was deemed unjust, and the assessee's appeal was allowed