Faceless assessment notice gaps can justify non-appearance and lead to deletion of penalty for alleged non-cooperation.

Penalty for alleged non-compliance with scrutiny notices was deleted because, in a faceless assessment regime, notice-service and communication gaps through electronic modes could not be ruled out. On the facts, the Tribunal treated the assessee's non-appearance as attributable to circumstances beyond control rather than deliberate non-cooperation. The Revenue's reliance on the lower authorities' view of non-compliance was therefore insufficient to sustain the penalty.

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Issues: Whether the penalty levied for alleged non-compliance with scrutiny notices was sustainable in the facts of a faceless assessment.

Analysis: The assessee did not appear before the Tribunal, and the Revenue relied on the lower authorities' finding that the assessee had not cooperated with notices issued in the scrutiny assessment. The Tribunal noted that the assessment was conducted in the faceless regime, where notice-service and communication gaps through email and similar electronic modes could not be ruled out. On that factual basis, the alleged non-cooperation was treated as justifiable in the circumstances beyond the assessee's control.

Conclusion: The penalty was deleted and the issue was decided in favour of the assessee.

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