SHIMNIT UTSCH INDIA PVT LTD.,MUMBAI vs. DCIT 3 (3)(1), MUMBAI

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ITA 7691/MUM/2019Status: DisposedITAT Mumbai21 June 2021AY 2013-143 pages
AI SummaryRemanded

What did the Tribunal hold?

The ITAT found that the CIT(A) passed a cryptic and non-speaking order. Therefore, the matter was restored to the CIT(A) for a fresh, speaking order after providing a reasonable opportunity of hearing to the assessee.

What were the facts?

The assessee's appeal before the CIT(A) was dismissed ex-parte due to non-appearance, leading to the confirmation of a penalty. The assessee also remained absent before the ITAT.

What were the issues?

Whether the penalty levied under Section 271(1)(c) was correctly confirmed by the CIT(A) without providing a proper opportunity of hearing and passing a speaking order.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “E”, MUMBAI

Before: SHRI SAKTIJIT DEY & SHRI RAJESH KUMAR

For Respondent: Shri Vijay Kumar Menon, D.R
Hearing: 21.06.2021Pronounced: 21.06.2021

Per Rajesh Kumar, Accountant Member:

1.

The present appeal has been preferred by the assessee against the order dated 14.09.2019 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2013-14.

2.

The only issue raised in the various grounds of appeal is against the confirmation of penalty of Rs.41,92,084/- by Ld. CIT(A) as levied by the AO under section 271(1)(c) of the Act.

3.

At the time of hearing when the case was called up for hearing neither assessee nor his authorised representative was present to attend the hearing nor any application for

4.

After hearing the Ld. D.R. and perusing the material on record including the impugned appellate order, we observe that the Ld. CIT(A) decided the issue ex-parte and thus dismissed the appeal of the assessee. Though none appeared on behalf of the assessee even before the Ld. CIT(A) despite allowing three opportunities on 07.03.2018, 06.08.2018 and 11.09.2018. Finally, a show cause notice was issued fixing the date of hearing on 22.08.2019 which also went unattended and finally the Ld. CIT(A) passed the ex-parte order. A perusal of the first appellate order revealed that Ld. CIT(A) has passed this order in a cryptic and non speaking manner. In view of these facts, we are of the view that this appeal needs to be restored to the file of the Ld. CIT(A) with the direction to pass a speaking order. Needless to say that before passing the order, the assessee is to be granted a reasonable opportunity of hearing. Accordingly, we restore the matter back to the file of the Ld. CIT(A).

5.

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

Order pronounced in the open court on 21.06.2021.

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