Reasonable cause for procedural defaults led to deletion of penalties under sections 271(1)(b) and 272A(1)(d).

Penalties under section 271(1)(b) and section 272A(1)(d) were deleted because the Tribunal accepted that the assessee had shown reasonable cause for the defaults. After examining the appeal record and the material placed before it, the ITAT held that sustaining the penalties was not justified on the facts and circumstances demonstrated by the assessee. The appeals were therefore allowed in favour of the assessee.

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Issues: Whether the penalties imposed on the assessee under section 271(1)(b) and section 272A(1)(d) and sustained by the CIT(A) are liable to be deleted.

Analysis: The Tribunal examined the appeal records and found the assessee's grounds contesting the factual and legal basis for imposition of the penalties. Having heard the Revenue representative and perused the material on record, the Tribunal accepted that the circumstances shown by the assessee constitute reasonable cause affecting the imposition of the penalties. On that basis the Tribunal concluded that sustaining the penalties was not justified and that deletion of the penalties was warranted.

Conclusion: The penalties under section 271(1)(b) and section 272A(1)(d) as sustained by the CIT(A) are deleted; the appeals are allowed in favour of the assessee.

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