https://www.taxtmi.com/caselaws?id=469582 Penalty under section 271(1)(b) was treated as not automatic where the record did not show proper service of notice after the assessee's office shifted. The assessee denied receipt, and no contrary material was produced to disprove that denial. Fresh proceedings showed compliance with notices and assessment at nil, supporting the finding of reasonable cause under section 273B. On these facts, the failure to respond was not treated as wilful default, and the penal provision was applied as discretionary rather than mandatory. The penalty was therefore held not leviable and was cancelled. en-us Fri, 18 May 2012 00:00:00 +0530 Tue, 23 Jun 2026 13:07:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=469582 Penalty under section 271(1)(b) was treated as not automatic where the record did not show proper service of notice after the assessee's office shifted. The assessee denied receipt, and no contrary material was produced to disprove that denial. Fresh proceedings showed compliance with notices and assessment at nil, supporting the finding of reasonable cause under section 273B. On these facts, the failure to respond was not treated as wilful default, and the penal provision was applied as discretionary rather than mandatory. The penalty was therefore held not leviable and was cancelled. Case-Laws Income Tax Fri, 18 May 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=469582