MOHIT GARG,NEW DELHI vs. DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE - 16, NEW DELHI, NEW DELHI

The assessee was required to get his accounts audited as per provisions of section 44AB of the Act which he failed to do so and as consequence, penalty u/s 271B of the Act of Rs. 1,50,000/- was levied on the assessee.

From a perusal of record, we find that the ld. CIT(A) has confirmed the penalty and the assessee’s grievance is that the ld. CIT(A) has not given adequate opportunity to explain the reasons before confirming the penalty u/s 271B of the Act. From the record, we find that the assessee has submitted an affidavit stating that he was suffering from blood cancer and because of his deteriorating health condition, he could not ITA No. 2578/DEL/2023 [A.Y. 2013-14] 7. From a perusal of the affidavit filed by the assessee, we find that because of the dire health conditions, the assessee could not attend the proceedings before the ld. CIT(A) and explain his position. In view of the above facts and circumstances and in the interest of justice and fair play, we are of the considered view that the matter be restored back to the file of the ld. CIT(A) to decide the issues afresh after allowing adequate opportunity of being heard to the assessee. The assessee is also directed to provide necessary information /documents as required by the authorities.

In the result, the appeal of the assessee in ITA No. 2578/DEL/2023 is allowed for statistical purposes. The order is pronounced in the open court on 05.08.2025. [MADHUMITA ROY]