2025 (6) TMI 216

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....ER PER LALIET KUMAR, J.M: This appeal has been filed by the assessee against the order dated 26.07.2024 passed by the Commissioner of Income Tax (Appeals), NFAC, Delhi ['CIT(A)'], confirming the penalty of Rs. 40,000/- levied under Section 271(1)(b) of the Income Tax Act, 1961 for the Assessment Year 2012-13. 2. At the outset the Registry has pointed out that the appeal of the assessee is....

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....s not present in India and had no knowledge of the ongoing proceedings. It was further submitted that the notices were not properly served and returned with postal remarks such as "insufficient address" and "house remains closed." Copies of the returned envelopes and other documents were placed on record. 8. The CIT(A), while acknowledging that the assessee had not complied with the four statut....

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....in a position to respond to the notices issued by the Ld. Assessing Officer during the relevant period. It was contended that the non-appearance was bonafide and not intentional. Further, it was submitted that the assessee could not effectively present his case before the Ld. CIT(A) either. However, if given an opportunity, the assessee is now prepared to appear and explain the facts of the case a....

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.... 271(1)(b) is quasi-criminal in nature and cannot be sustained merely on technical non-compliance, particularly where service of notice itself is in dispute and the conduct of the assessee does not reflect contumacious defiance. 13. We further find that the CIT(A), while affirming the penalty, did not properly deal with the evidence of returned notices or the relevance of judicial precedents ci....