MAHESHKUMAR LALJIDAS PATEL,VISNAGAR vs. INCOME TAX OFFICER, WARD 1, PATAN

Facts

The assessee faced a penalty order under Section 271D for AY 2013-14. They failed to appear before the JCIT, resulting in an ex-parte order on 07.06.2019, and subsequently failed to appear before the CIT(A) despite multiple opportunities, leading to another ex-parte order on 09.01.2024.

Held

The tribunal condoned the delay in filing the appeal. Recognizing that no prejudice would be caused to the Revenue by allowing the assessee an opportunity to be heard, the tribunal remanded the case back to the JCIT, Patan Range, Patan, for a fresh decision after hearing the assessee's submissions. The appeal was allowed for statistical purposes.

Key Issues

Whether the ex-parte penalty orders issued by the JCIT and CIT(A) were valid given the assessee's lack of an effective opportunity to be heard.