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Assessee by Shri Ashwin Parekh – CA Revenue by Ms. Anupama Singla – Sr.DR Date of hearing 08.09.2021 Date of pronouncement 09.09.2021 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by assessee is directed against the orders of ld. Commissioner of Income tax (Appeals)-1, Surat dated 21.08.2018, which in turn arise from the order of assessing officer in levying penalty under section 271(1)(c) of the IT Act, for the assessment year (AY) 2010-11.The assessee raised the following grounds of appeal:
1. The learned CIT(A) has grievously erred in law and on facts in confirming the penalty of Rs.1,43,407/- u/s. 271(1)(c) of the Act without appreciating the detailed explanation with evidences submitted by Appellant. The Penalty of Rs. 1,43,407/- should therefore, be deleted. The appellant reserves the right to add, alter, modify, amend or withdraw any of the grounds of appeal before hearing.”
Shiv Shakti Organizers (AY 2010-11) 2. Brief facts of the assessee that assessee is a partnership firm, engaged in the business of construction. The assessee filed its return of income for assessment year (AY) 2010-11 on 23.08.2010 declaring total income at Rs.3,570/-. The assessment under section 143(3) of the Act was completed on 12.03.2013 determining total income at Rs.4,67,670/- by making addition of contract expenses of Rs. 224,042/- and salary expenses of Rs. 240,100/-, thereby making total additions of Rs.4,64,100/-. The assessing officer initiated penalty proceedings under section 271(1)(c) of the Act on 12.03.2013 for furnishing inaccurate particulars of income. The assessing officer levied penalty of Rs. 1,43,407/- under section 271(1)(c) vide order dated 29.01.2016, being 100% of tax sought to be evaded on the disallowance made in the assessment order. On appeal before ld. CIT(A), the action of the assessing officer was affirmed. The ld CIT(A) confirmed the order of assessing officer in ex-parte order by taking view that despite granting a number of opportunities to the assessee failed to comply the notices. Further aggrieved, the assessee has filed present appeal before this Tribunal.
We have heard the submission of Ld. Authorised Representative (AR) of the assessee and ld.Senior Departmental Representative (Sr.DR) for the Revenue. The ld AR for the assessee submits that the ld.CIT(A) passed the order ex-parte, without providing fair and proper opportunity to the assessee. The ld.AR for the assessee submits thatthe assessee has good 2 Shiv Shakti Organizers (AY 2010-11) case on merit and is likely to succeed if one more opportunity of hearing is granted to him to explain the facts before ld.CIT(A). The ld.AR for the assessee prayed that the assessee may be given one more opportunity to represent his case before the ld.CIT(A).The ld.AR further submits that the ld.CIT(A) passed the ex-parte order without discussing the merits of the case. The ld.AR for the assessee undertook to be vigilant in attending the hearing before first appellate authority.
On the other hand, the Sr.DR for the Revenue submits that the assessee was given ample opportunity as recorded in page 2 of para 5.1.1 of the order passed by the ld.CIT(A). The assessee failed to comply with the notice issued by the ld.CIT(A). The ld.CIT(A) left with no option, except to proceed to decide the appeal on the basis of the material available on record. The ld DR for the revenue submits that the assessee is not entitled for any relief as he has nor disclosed reasonable cause for non-appearance before ld CIT(A). In alternative submission, the ld.Sr.DR for the Revenue submits that in case the Hon’ble Tribunal is deem appropriate, the assessee be directed to be vigilant in future and not to default in attending the proceedings and to waste the time of quasi judicial and public authorities/ first appellate authority.
We have considered the rival submission of both the parties and have gone through the orders of Lower Authorities.We find that the assessing officer while passing the assessment order made additions on account of 3