Penalty proceeding u/s 271(1)(b)

This query is : Resolved

s kaushik (Querist)
Follow

18 March 2015 The assessee was served notice U/s 143(2) and sec 142(1). The assessment proceeding was complete and the Tax liability was NIL. NOw AO issues Memo for initiating penalty proceeding u/s 271(1)(b) for not replying notice u/s 142(1). The assessee is not sure whether these notice are served. What is the remedy and the draft letter for reply

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
Follow

18 March 2015 In reply to show cause notice you can take the plea that the notice was not complied because it was not served on the assessee. But before doing so it should be ensured at the assessee's end that no formal receipt of the same was given to the income tax department and that no notice was actually received. If he is not sure than it is better to give some other valid reason for not complying with the notice on the given date.