Penalty under section 270A restored for fresh adjudication after the assessee sought one final opportunity to present material.

In a penalty dispute under section 270A of the Income-tax Act, the Tribunal considered the assessee's plea that inadequate opportunity had been given before the first appellate authority. The penalty had been sustained ex parte after repeated non-compliance, but the Tribunal accepted that one further opportunity should be granted so the assessee could place supporting material. The matter was therefore restored to the first appellate authority for fresh disposal on merits in accordance with law, with a direction to afford a final opportunity and then decide the appeal afresh.

---

---

Issues: Whether the matter should be restored to the file of the first appellate authority for a fresh decision on the penalty levied under section 270A of the Income-tax Act, 1961, in view of the assessee's plea of inadequate opportunity.

Analysis: The appeal arose from a penalty sustained ex parte by the first appellate authority after repeated non-compliance. The Tribunal noted the assessee's request for one further opportunity to place supporting material and found that, in the interests of justice, the dispute warranted reconsideration on merits rather than final disposal on the existing ex parte record.

Conclusion: The matter was restored to the file of the first appellate authority with a direction to grant one final opportunity and decide the appeal afresh in accordance with law.

---