2021 (7) TMI 609

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....ity. 3. First we will deal with the appeal in ITA No. 1304/Chd/2019 for the A.Y. 2005-06 wherein Assessee has raised the following grounds: 1. That the Ld. Commissioner of Income Tax(Appeals) has erred in passing an ex-parte order which is against the Principals of natural justice and as such the order passed is illegal, arbitrary and unjustified. 2. Without prejudice to the above, the Ld. Commissioner of Income Tax (Appeals) erred in law and facts in failing to adjudicate the specific ground of appeal wherein it was challenged that the assessing officer did not record the mandatory satisfaction in the assessment order before initiation of penalty whether for concealment of income or for furnishing inaccurate particular....

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....e and as such the order passed under section 271(1)(c) of the Act is illegal, arbitrary and unjustified. 7. That the order of the Ld. Commissioner of Income Tax(Appeals) passed under section 271(1)(c) of the Act is erroneous, arbitrary, opposed to law and facts of the case and is, thus, untenable. 4. From the aforesaid ground it is clear that the main grievance of the assessee vide ground no. 1 relates to the passing of the impugned order ex-parte without giving proper and reasonable opportunity of being heard to the assessee. 5. Facts of the case in brief are that a search operation was conducted on 17/09/2010 under section 132(1) of the Income Tax Act, 1961 (hereinafter referred to as 'Act') at business premises of ....

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....2013 was issued and duly served upon the assessee and the hearing was scheduled on 17/05/2013 but no compliance was made. A.O. made the addition of Rs. 73,00,000/- to the total income of the assessee by stating that the assessee had failed to prove the genuineness of the share capital received and creditworthiness of the share applicants. The A.O. levied the penalty of Rs. 27,36,405/- under section 271(1)(c) of the Act vide the ex-parte order dt. 23/03/2018. 6. Being aggrieved the assessee carried the matter to the Ld. CIT(A) who confirmed the action of the Assessing Officer by passing the impugned order ex-parte. The Ld. CIT(A) observed that notices for hearing were issued on various dates to the assessee but nobody appeared in response....