LENZING POLYPACKS LTD.,NEW DELHI vs. ITO, WARD-15(2), NEW DELHI

In the instant case vide assessment order dated 13.03.2014 passed u/s 143(3)/148 of the Income-tax Act, 1961 (in short “the Act”), additions of Rs. 90,00,000/- on account of accommodation entries and Rs. 1,80,000/- on account of commission paid by the Assessee have been made. The Assessing officer also initiated penalty proceedings u/s 271(1)(c) of the Act and vide order dated 22.09.2017 levied the penalty to the tune of Rs. 30,89,988/- on the income of Rs. 91,80,000/- sought to be evaded.

The Assessee being aggrieved, challenged the penalty order before the learned Commissioner, who vide order dated 15.02.2019 affirmed the penalty levied u/s 271(1)(c) of the Act, against which the Assessee is in appeal before us.

None appeared on behalf of the Assessee, inspite of sending notice for the date of hearing on 29.12.2022. Therefore, we deem it appropriate to decide this appeal as ex parte.

At the outset the Ld. DR fairly submitted that the Tribunal in quantum appeal decided on 13.11.2019, for the assessment year in question itself, set aside the addition on the basis of which penalty was levied and restored the issue concerning the addition referred to above to the file of the Assessing officer, with a direction to decide the issue afresh in accordance with law, after giving due opportunity of being heard to the Assessee.

Considering the peculiar facts and circumstances, the issue qua levy of penalty is also remanded to the file of the Assessing Officer for decision afresh, suffice to say by providing reasonable opportunity of being heard to the Assessee.

In the result, appeal filed by the Assessee stands allowed for statistical purposes.