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Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: SHRI MANOJ KUMAR AGGARWAL & SHRI MANOMOHAN DAS
Appeal Centre (NFAC) Delhi [CIT(A)] dated 02-12-2022 in the matter of assessment framed by Ld. Assessing Officer [AO] under section 144 of the Act on 02-12-2019 and penalty levied u/s 271AAC vide order dated 06-08-2021.
The Ld. AR, at the outset, submitted that quantum assessment orders as well as penalty orders passed by lower authorities are ex- parte orders. Accordingly, Ld. AR sought remand of impugned matters to Ld. AO so that the assessee could substantiate his claim before the Ld. AO. The Ld. Sr. DR submitted that the assessee remained negligent in attending any of the proceedings.
The Bench observed that the assessee did not appear before the lower authorities despite being given sufficient opportunities. However, the Bench accept the submission of Ld. AR by observing that after all the orders of the lower authorities are ex-parte orders and keeping in mind the principle of natural justice, the assessee be provided with another opportunity of hearing. Therefore, the impugned orders are set-aside. However, this concession would come upon payment of cost of Rs. 10,000/-. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order. The & 164/Chny/2023 :- 3 -:
receipt / proof shall be furnished by the assessee in due course to Ld. AO who shall proceed to reframe the assessment and consequential penalty de novo after affording opportunity of hearing to the assessee. Ordered accordingly.
In the result, both the appeals of the assessee are allowed for statistical purposes.
Order pronounced on 23rd June, 2023.