Tribunal grants appeals for AY 2014-15 & 2015-16, emphasizes natural justice principles

The tribunal allowed all six appeals filed by the assessee for AY 2014-15 and 2015-16 for statistical purposes, directing the CIT(A) to re-adjudicate the issues after considering the assessee's contentions and providing a fair hearing. The decision emphasized the importance of adhering to the principles of natural justice and ensuring that the assessee is given a proper opportunity to present its case.

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Issues Involved:
1. Confirmation of penalty under Section 271(1)(b) of the Income-tax Act, 1961.
2. Non-compliance with notices issued under Section 142(1) of the Income-tax Act, 1961.
3. Alleged non-service of notices and show cause notices.
4. Delay in filing appeals and non-condonation of delay.
5. Consistency of tribunal decisions in similar cases for previous assessment years.

Issue-wise Detailed Analysis:

1. Confirmation of Penalty under Section 271(1)(b):
The assessee appealed against the confirmation of penalties under Section 271(1)(b) for non-compliance with notices issued under Section 142(1). The penalties were imposed for assessment years (AY) 2014-15 and 2015-16. The penalties were initially confirmed by the Commissioner of Income-tax (Appeals) [CIT(A)].

2. Non-compliance with Notices under Section 142(1):
The Assessing Officer (AO) issued several notices under Section 142(1) for AY 2014-15 and 2015-16, which the assessee allegedly failed to comply with. The AO issued penalty notices under Section 271(1)(b) due to non-compliance on multiple dates. The assessee argued that there was no proper service of notices and no queries were raised.

3. Alleged Non-service of Notices and Show Cause Notices:
The assessee claimed that the show cause notices (SCNs) issued under Section 274 read with Section 271(1)(b) were not served. The AO, however, claimed that the SCNs were served through email and speed post. The CIT(A) upheld the penalties, stating that the SCNs were duly served, and the assessee did not comply.

4. Delay in Filing Appeals and Non-condonation of Delay:
The CIT(A) dismissed the appeals on the grounds of delay in filing beyond the time prescribed under Section 249(2) of the Income-tax Act, 1961. The assessee did not file any application for condonation of delay. The tribunal noted that the assessee claimed to have received the penalty orders on 31.01.2019 and filed the appeals on 07.02.2019, which required proper adjudication.

5. Consistency of Tribunal Decisions in Similar Cases:
The assessee referred to a previous tribunal decision dated 16.10.2019 for AYs 2012-13, 2013-14, and 2016-17, where penalties under similar circumstances were deleted. The tribunal observed that the facts in the current case for AY 2014-15 differed as there were additions made based on incriminating material found during search operations, unlike in the previous years where returned income was accepted.

Tribunal's Decision:
The tribunal set aside the matter to the file of the CIT(A) for fresh adjudication, noting the need for a proper hearing and consideration of the assessee's claims regarding the service of SCNs and the delay in filing appeals. The tribunal allowed the appeals for statistical purposes, emphasizing the principles of natural justice and the need for a fair opportunity to the assessee to present its case.

Conclusion:
The tribunal allowed all six appeals filed by the assessee for AY 2014-15 and 2015-16 for statistical purposes, directing the CIT(A) to re-adjudicate the issues after considering the assessee's contentions and providing a fair hearing. The decision emphasized the importance of adhering to the principles of natural justice and ensuring that the assessee is given a proper opportunity to present its case.

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