SREE SARAVANABALAJI TEXTILES (P) LTD ,COIMBATORE vs. ACIT CORP CIRCLE 1 , COIMBATORE

Aggrieved by confirmation of certain penalty u/s 270A for captioned assessment years, the assessee is in further appeal before us. The impugned orders are ex-parte order wherein Ld. CIT(A) held that since assessment was accepted by the assessee, the same would prove mens rea on the part of the assessee and the penalty was confirmed in both the years. Aggrieved the assessee is in further appeal before us. The Ld. AR pleaded for another opportunity of hearing to the assessee.

We are of the considered opinion the levy of penalty is not automatic. Therefore, impugned orders are set-aside to the file of Ld. CIT(A) for de novo adjudication by way of speaking order with a direction to the assessee to defend its case. 3. Both the appeals stand allowed for statistical purposes.