Wachovia Marketing Private Limited faced a penalty under section 271(1)(b) of the Income Tax Act for the assessment year 2011-12, leading to an appeal against the order of the Commissioner of Income Tax (Appeals) – National Faceless Appeal Centre (NFAC), Delhi.
The case revolves around non-compliance by the assessee with the notice issued under section 142(1) during the assessment proceedings, which led to a penalty by the Assessing Officer. The assessee’s failure to respond to subsequent notices compounded the issue, resulting in the dismissal of their appeal by the NFAC due to a significant delay in filing.
The primary legal question was the justification for the penalty due to non-compliance and the procedural fairness in handling delays in appeal filings. The tribunal examined the chronology of non-responses and upheld the penalty based on systematic non-compliance and inadequate justification for the delay in appeal.
The Income Tax Appellate Tribunal dismissed the assessee’s appeal, emphasizing the importance of compliance with procedural requirements in tax assessments and appeals.
This case highlights the critical nature of timely compliance with tax authorities and the repercussions of procedural lapses. It serves as a cautionary tale for corporations about the importance of maintaining diligent records and responding promptly to tax notices.
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