Pune ITAT deletes penalty for non-compliance with section 142(1) notices on finding reasonable cause under section 273B
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Source & Citation
CaseKamalKishor vs. ITO
Court / BenchPune Bench
Decision date2026-09-15
Publication statusTo be published soon
5-Second Takeaway
The Pune Bench of the Tribunal held that, on the totality of the facts, the assessee had reasonable cause under section 273B for not complying with two section 142(1) notices because it was completely dependent on its chartered accountant’s advice. The penalty levied by the Assessing Officer and sustained by the CIT(A)/NFAC was directed to be deleted.
The Pune Bench “A” of the Tribunal considered a penalty imposed for failure to comply with two notices issued under section 142(1), dated 14 September 2023 and 3 October 2023. The assessee did not dispute the non-compliance, but relied on the explanation that it was entirely dependent on the chartered accountant’s advice in dealing with the notices.
On that footing, the Tribunal held that reasonable cause existed within the meaning of section 273B. It found that, looking to the totality of the facts, the assessee’s non-appearance and non-compliance were explained by that dependence on professional advice.
Accordingly, the Tribunal directed deletion of the penalty levied by the Assessing Officer and sustained by the CIT(A)/NFAC.