SMT. K. HAJIRA BANU,,MADURAI vs. ITO, NCW-2(2), , MADURAI

This appeal by the assessee is arising out of the order of Learned Commissioner of Income Tax (Appeals)-2, Madurai in dated 30.01.2020. The assessment was framed by the Income Tax Officer, Non-Corporate Ward 2(2), Madurai for the assessment year 2014-15 u/s. 143(3) of the Income Tax Act, 1961 (hereinafter ‘the Act’) vide order dated 29.12.2016. The impugned

The only issue in this appeal of assessee is as regards to the order of CIT(A) confirming the levy of penalty by the AO u/s.271(1)(c) of the Act without affording sufficient opportunity in violation of principles of natural justice and passing ex-parte order.

None is present from assessee’s side however Revenue is represented by ld. Senior DR, Shri Sajit Kumar.

We have gone through the order of CIT(A) and noticed that the CIT(A) has posted the appeal for hearing on various dates during 2019 & 2020. Finally the CIT(A) passed order on 30.01.2020 but it is noticed that the CIT(A) simply confirmed the action of AO by quoting the Explanation (1) to Section 271(1)(c) of the Act and also noted that since the assessee failed to come forward to produce documentary evidence to substantiate the claims made, hence he confirmed the penalty. In our view, the order of CIT(A) is a non-speaking order on the issues because he has not discussed the creditors rather he has discussed what happened during assessment proceedings and not discussed what happened during penalty proceedings. In our view, as the assessee could not represent before CIT(A), one more chance be 3 provided to assessee to represent her case. To this, the ld.Senior DR stated that the CIT(A) has passed order on merits but when pointed out that the CIT(A) has simply confirmed the order of AO levying penalty, he could not show us how the CIT(A) has dealt with the issue on merits, as regards to levy of penalty. In term of these, we set aside the order of CIT(A) and remand the matter back to his file for fresh adjudication after allowing reasonable opportunity of being heard to the assessee. The assessee is also directed to avail this opportunity otherwise the CIT(A) will again constraint to pass ex-parte order. Accordingly, the appeal of assessee is allowed for statistical purpose.

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