Reasonable cause under section 273B barred penalty for non-furnishing of requisitioned information, and the levy was deleted.

Penalty for failure to furnish information requisitioned under section 133(6) was found unsustainable where the assessee established reasonable cause under section 273B. The assessee showed that the information had been furnished to another registration authority and not to the Income-tax Officer due to a bona fide mistake, and that explanation was accepted as genuine. Once reasonable cause was proved, section 273B barred imposition of penalty under section 272A(2)(c), and the penalty was deleted.

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Issues: Whether penalty under section 272A(2)(c) of the Income-tax Act, 1961 was leviable for failure to furnish information requisitioned under section 133(6) of the Income-tax Act, 1961 when the assessee claimed reasonable cause under section 273B of the Income-tax Act, 1961.

Analysis: The assessee explained that the required information had been furnished to another registration authority and not to the Income-tax Officer due to a bona fide mistake. The explanation was accepted as genuine and reasonable. In view of section 273B, penalty is not imposable where the assessee proves reasonable cause for the failure. The record did not justify sustaining the penalty once such reasonable cause was established.

Conclusion: The penalty under section 272A(2)(c) was held unsustainable and was deleted in favour of the assessee.

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