SRI. KALAIAH RANGASWAMY vs. THE INCOME TAX OFFICER

THE INCOME TAX OFFICER WARD 1 AND TPS TUMKUR- 572 102.

NATIONAL FACELESS ASSESSMENT CENTRE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI-110 003. …RESPONDENTS

Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.

A perusal of the material on record will indicate that aggrieved by the order dated 23.03.2024 passed by respondent No.1 under Section 143(3) read with Section 144B of the Income Tax Act, pursuant to which, respondent No.2 issued the impugned penalty notice dated 23.03.2024 at Annexure-A1 passed under Section 271AAC(1) of the Act and as such, the petitioner is before this Court by way of the present petition.

In this context, it is pointed out that inability and omission on the part of the petitioner to submit replies to the notices issued by the respondents and to participate in the proceedings was due to bonafide and unavoidable circumstances and sufficient cause and consequently, the petitioner was not in a position to issue reply or appear before the respondents and participate in the said proceedings. It is submitted that the petitioner has a good case to urge on merits and if one more opportunity is granted in favour of the petitioner, the petitioner would submit its reply along with the documents and participate in the proceedings and as such, it is necessary that the impugned orders / Notices at Annexure A1 be set aside and the matter be remitted back to the respondents by providing one more

Per contra, learned counsel for the respondents submits that despite sufficient opportunity being granted in favour of the petitioner, the petitioner did not send its reply nor participated in the proceedings and consequently, the impugned order does not warrant interference by this Court and the petition is liable to be dismissed. 6. A perusal of the impugned order at Annexure – A will clearly indicate that the same was passed in the absence of the petitioner, who did not avail the opportunity provided by the respondent, who has proceeded to pass the impugned order. In view of the aforesaid facts and circumstances and specific assertions on the part of the petitioner that due to bonafide reasons, unavoidable circumstances and sufficient cause, the petitioner was not in a position to send reply enclosing documents and contest the proceedings and in order to provide one more opportunity to the petitioner, by adopting a justice oriented approach, I deem it just and appropriate to set aside the impugned order and remit the matter back to the respondents for

In the result, I pass the following: ORDER (i) The impugned notice / order at Annexure – A1 dated 23.03.2024, is hereby set aside. (ii) Matter is remitted back to the stage of petitioner submitting reply to Show Cause Notice dated 23.03.2024 under Section 143 and to proceed further in accordance with law. (iii) Liberty is reserved in favour of the petitioner to file its reply, pleadings, documents, etc., before respondent No.2, who shall consider the same and pass appropriate orders in accordance with law. (iv) All rival contentions are kept open and no opinion is expressed on the same.