Tribunal grants assessee's appeals emphasizing fair opportunity & consideration before imposing penalties.

The Tribunal allowed all the appeals of the assessee in ITA Nos. 2753 to 2758/PUN/2017 for statistical purposes. The order was pronounced on the 2nd day of February, 2021. The Tribunal emphasized the significance of affording the assessee a fair opportunity to present their case and ensuring that all submissions are duly considered before imposing penalties under the Income Tax Act.

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Issues Involved:
Appeals against penalty imposed under section 271(1)(b) of the Income Tax Act, 1961 for assessment years 2008-09 to 2013-14.

Analysis:

Issue 1: Penalty Imposed under Section 271(1)(b) of the Income Tax Act
The appeals revolved around the imposition of penalties under section 271(1)(b) of the Income Tax Act, 1961. The Assessing Officer had levied penalties due to the non-compliance of the assessee regarding the hearing dates and the failure to provide written replies or attend the hearings. The assessee neither attended the hearings nor responded to show cause notices issued under section 271(1)(b) r.w.s. 274 of the Act. The Assessing Officer concluded that the assessee had committed a default, leading to the imposition of penalties.

Issue 2: Lack of Mention of Assessee's Submissions
During the hearing, the counsel for the assessee argued that the assessee had sought an adjournment and contended that they had responded to the Department's notice. However, the penalty order did not reflect these submissions by the assessee. In the interest of justice and ensuring the principles of natural justice, the Tribunal decided to grant the assessee another opportunity to present their case before the Assessing Officer. The Tribunal set aside the order of the Ld. CIT(Appeals) and directed the matters to be restored to the file of the Assessing Officer for a fresh decision based on all submissions made by the assessee.

Final Decision:
The Tribunal allowed all the appeals of the assessee in ITA Nos. 2753 to 2758/PUN/2017 for statistical purposes. The order was pronounced on the 2nd day of February, 2021. The Tribunal's decision highlighted the importance of providing the assessee with a fair opportunity to present their case and ensuring that all submissions are duly considered before imposing penalties under the Income Tax Act.

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