2021 (1) TMI 636 - AT - Income Tax

Tribunal Remands Appeal for Fresh Hearing

The Tribunal allowed the appeals for statistical purposes and remanded the matter back to the CIT(A) for a fresh hearing, emphasizing the importance of ... Penalty u/s 271(1)(b) - non-compliance to the statutory notice issued u/s 142(1) along with the questionnaire - CIT(A) confirmed the penalty so levied by the AO on the ground that despite issue of notice the assessee did not appear before him - HELD THAT:- It is the submission of the ld. Counsel that given an opportunity the assessee is in a position to substantiate its case before the CIT(A) regarding the non-compliance. Considering the fact that the ld.CIT(A) has issued only one notice of hearing to the assessee and, thereafter, passed the ex parte order, therefore, considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the CIT(A) with a direction to grant one final opportunity to the assessee to substantiate its case and decide the issue as per fact and law. The assessee is also hereby directed to appear before the CIT(A) and present its case failing which the ld.CIT(A) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. Issues:Challenging ex parte order confirming penalty under section 271(1)(b) of the IT Act.Analysis:The appeals were filed against the common order of the CIT(A) confirming penalties for various assessment years. The assessee challenged the penalties imposed by the AO under section 271(1)(b) of the IT Act. The search and seizure operation under section 132 of the IT Act led to the initiation of penalty proceedings due to non-compliance by the assessee with the notices issued under section 142(1). The CIT(A) upheld the penalties in an ex parte order as the assessee did not appear. The assessee contended that they were not given sufficient opportunity to present their case.The counsel for the assessee argued that the assessee should be given another chance to substantiate their case. On the contrary, the DR supported the penalty, citing the assessee's disregard for statutory notices. After hearing both sides and examining the orders and submissions, the Tribunal found that the penalties were imposed for non-compliance with notices under section 142(1). The Tribunal acknowledged the lack of opportunity for the assessee to present their case before the CIT(A) and decided to remand the issue back to the CIT(A) for a fresh hearing.The Tribunal directed the CIT(A) to grant the assessee a final opportunity to present their case and decide the matter based on facts and law. The assessee was instructed to appear before the CIT(A), failing which appropriate action could be taken. The Tribunal allowed the appeals for statistical purposes, emphasizing the importance of providing a fair opportunity for the assessee to be heard.In conclusion, all the appeals were allowed for statistical purposes, and the matter was remanded back to the CIT(A) for a fresh hearing, ensuring the assessee's right to present their case and be heard.