KANAK IMPEX INDIA LIMITED,MUMBAI vs. INCOME TAX OFFICER , MUMBAI

None appeared on behalf of the assessee when the case was called out repeatedly. From the case file, we noticed that on the previous occasions also, dates were being sought on one or the other grounds, and even today nobody appeared on behalf of the assessee. Also, no application seeking adjournment has been filed, whereas, on the contrary, the ld. DR present in the Court is ready with the arguments. Therefore, we have decided to proceed with the hearing of the case ex parte.

All the grounds raised by the assessee are interrelated and interconnected and relates to challenging the order of the ld. CIT(A) in confirming the penalty of Rs. 85,26,398 under Section 271(1)(c) of the Act. Therefore, we have decided to adjudicate these grounds through the present consolidated order.

After hearing the ld. DR and perusing the record, we found that in Ground Nos. 3 and 4, the assessee has taken a specific stand that the notice issued for levy of penalty was defective, as it was not discernible whether the penalty proceedings were initiated for furnishing inaccurate particulars of income or for concealment of income. Apart from this, it was also noticed that the assessee has taken a plea that the additions were made in the present case on assumptions and on an ad hoc basis, but the ld. CIT(A) has not adjudicated these grounds.

Be that as it may, without going into the merits of the issues raised by the assessee and considering the fact that the assessee could not effectively represent his case before the ld. CIT(A), we are of the view that, in the interest of justice, one more opportunity should be granted to the assessee to represent his case before the ld. CIT(A). Accordingly, considering the overall facts and circumstances of the present case, we deem it proper to set aside the order passed by the ld. CIT(A) and restore the matter to the file of the ld. CIT(A) for deciding the same afresh after providing adequate and sufficient opportunity of being heard. The assessee shall not seek any adjournment on frivolous grounds and shall remain cooperative during the course of the proceedings.

Before parting, we wish to make it clear that our decision to restore the matter to the file of the Ld. CIT(A) shall in no way be construed as reflecting upon or expressing any opinion on the merits of the dispute, which shall be adjudicated independently by the Ld. CIT(A) in accordance with law.

Needless to mention, the Ld. CIT(A) shall provide an adequate opportunity of hearing to the assessee. The assessee shall not seek any adjournment on frivolous grounds and shall remain cooperative during the course of the proceedings.

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