https://www.taxtmi.com/caselaws?id=787303 Where an educational institution exempt under Section 10(23C)(iiiab) failed to respond to notices under Sections 143(2) and 142(1) for bona fide reasons and the assessing officer subsequently accepted the return, completed assessment on merits showing nil tax and no escapement of income, the discretionary power under Section 271(1)(b) permits withholding penalty. The article concludes that a credible, bona fide explanation combined with an assessment that does not demonstrate escapement of income warrants deletion of the penalty and allowance of the appeal in favour of the assessee. en-us Tue, 24 Feb 2026 00:00:00 +0530 Mon, 02 Mar 2026 08:34:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787303 Where an educational institution exempt under Section 10(23C)(iiiab) failed to respond to notices under Sections 143(2) and 142(1) for bona fide reasons and the assessing officer subsequently accepted the return, completed assessment on merits showing nil tax and no escapement of income, the discretionary power under Section 271(1)(b) permits withholding penalty. The article concludes that a credible, bona fide explanation combined with an assessment that does not demonstrate escapement of income warrants deletion of the penalty and allowance of the appeal in favour of the assessee. Case-Laws Income Tax Tue, 24 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787303