SHRI PURSHOTAM DAS SHARMA,JAIPUR vs. INCOME TAX OFFICER, WARD-3-4, JAIPUR

The assessee is basically aggrieved for passing the ex parte order by the ld. CIT(A) without giving proper opportunity to the assessee. The assessee is also aggrieved for confirming the penalty of Rs. 27,872/- levied U/s 271(1)(c) of the Act.

2 ITA 1239/JP/2018 Shri Purshotam Das Sharma Vs ITO 3. Rival contentions have been heard and record perused. Facts in brief are that the assessee was an employee with North Western Railways and during the year under consideration earned income from salary therefrom and interest. Due to inadvertent mistake could not file regular return U/s 139 of the Act. Based on the information about TDS deducted out of salary and the A.O. initiated proceedings U/s 147 by issuing notice U/s 148 of the Act. In response thereto the assessee had filed his return of income declared income and tax payments.

The AO framed assessment u/s 147/143(3) of the Act vide his order dated 30.01.2016 by accepting the returned income. Thereafter he imposed penalty of Rs. 27,872 u/s 271(1)(C) of the Act. By the impugned order, the ld. CIT(A) confirmed the action of the A.O.

It was argued by the ld AR of the assessee that the penalty u/s 271(1)(c) of the Act has been levied on illegal notice as the notice issued by the AO dated 30.01.2016 does not contain perfect default of the assessee for such levy. The notice says that the assessee has concealed particulars of income or furnished inaccurate particulars of income. Penalty on the basis of such defective notice has been deleted by this Hon'ble Bench in large number of cases. Reliance is placed on the cases

From the record, I found that this ground was not specifically raised before the ld. CIT(A). Since the order passed by the ld. CIT(A) is ex parte without giving appropriate opportunity to the assessee, in all fairness, I restore the matter back to the file of the ld. CIT(A) for deciding the issue afresh after giving due and effective opportunity of hearing to the assessee. The assessee is also directed to appear before the ld. CIT(A) within 60 days from the date of receipt of this order. I direct accordingly.

In the result, appeal of the assessee is allowed for statistical purposes only.