M/S. ATHENA ENERGY VENTURE PVT. LTD.,NEW DELHI vs. DCIT, NEW DELHI
What did the Tribunal hold?
The Tribunal condoned the delay in filing the appeal and restored the issue to the CIT(A) for a final opportunity to the assessee to present its case. The CIT(A) was directed to decide the issue afresh after hearing the assessee.
What were the facts?
The assessee filed its return declaring nil income. The AO made additions and initiated penalty proceedings under Section 271(1)(c). The CIT(A) passed an ex-parte order confirming the penalty as the assessee did not appear.
What were the issues?
Whether the penalty levied under Section 271(1)(c) was rightly confirmed ex-parte by the CIT(A) without affording the assessee a proper opportunity to be heard.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Cases cited in this judgment(1)Show listHide list
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- Brooke Bond India Ltd. v. CIT228 citing225 ITR 798 · 1997 · SC · Read judgment
Income Tax Appellate Tribunal, DELHI BENCH ‘A’, NEW DELHI
Before: SH. BHAVNESH SAINI & SH. R. K. PANDA
Appellant by Sh. Suresan, CA Respondent by Sh. S. L. Anuragi, Sr. DR Date of hearing: 06/02/2020 Date of Pronouncement: 17/02/2020 ORDER
PER R.K PANDA, AM:
This appeal filed by the assessee is directed against the order dated 21.12.2015 of the CIT(A)-1, New Delhi relating to A.Y.2008-09.
There is a delay of 150 days in filing of the appeal by the assessee for which the assessee has filed a condonation petition explaining the reason for such delay. After hearing both the sides and after going through the contents of the condonation application, the delay in filing of the appeal by the assessee is condoned and the appeal is being admitted for hearing. 3. Although a number of grounds have been raised by the assessee, these all relate to the exparte order of the CIT(A) in confirming the penalty of Rs.3,39,900/- levied by the AO u/s. 271 (1) (c) of the IT Act. 4. Facts of the case, in brief, are that the assessee filed its return of income on 30.11.2008 declaring nil income. The AO completed the assessment u/s.143 (3) on 16.11.2010 determining total loss at Rs.68,75,170/- wherein apart from other additions he made addition of Rs. 10 lacs being the stamp duty paid to the ROC for increase in authorized capital since assessee, in the computation of income, had disallowed suo-moto of Rs.24,85,300/- as against Rs.34,85,300/-. While doing so the AO relied on the decision of Hon’ble Supreme Court in the case of Brooke Bond India Ltd. Vs. CIT 225 ITR 798. The AO thereafter initiated penalty proceedings u/s. 271 (1) (c) of the IT Act, 1961 and levied penalty of Rs.3,39,900/- being 100% of tax sought to be evaded. 5. Since none appeared before the CIT(A) despite number of opportunities granted, the Ld. CIT(A), in the exparte order passed by him, sustained the penalty so levied by the AO. 6. Aggrieved with such order of the CIT(A), the assessee is in appeal before the Tribunal. 7. We have heard the rival arguments made by both the sides and perused the orders of the authorities below. It is an admitted fact that despite number of opportunities granted, the assessee Page | 2 did not appear before the CIT(A) for which the Ld. CIT(A) passed the exparte order and thereafter sustained the penalty levied by the AO u/s. 271 (1) (c) of the IT Act, 1961. It is the submission of the ld. Counsel for the assessee that in the interest of justice the assessee should be given one final opportunity to represent its case before the CIT(A). Considering the totality of the facts of the case and in the interest of justice we deem it proper to restore the issue to the file of the CIT(A) with a direction to grant one final opportunity to the assessee to substantiate its case and decide the issue as per fact and law. The assessee is also hereby directed to appear before the CIT(A) without seeking any adjournment under any pretext failing which the Ld. CIT(A) is at liberty to decide the issue as per fact and law. The grounds raised
by the assessee are accordingly allowed for statistical purpose.
8. In the result, the appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 17.02.2020.
More judgments on Section 271(1)(c)
- Ajaybhai Dineshbhai Bagdai, Near Central… vs The Income Tax Officer, Ward-1(2)(1), New…ITA 74/RJT/2026[2013-14]Status: Disposed19 Oct 2026AY 2013-14
- Shalin Jayantbhai Desai, Vadodara vs ACIT, Circle-4(2), Vadodara Present…ITA 2569/AHD/2026[2010-11]Status: Disposed19 Oct 2026AY 2010-11
- Neo Structo Construction P. Ltd., Ahmedabad vs The Pr. CIT- 3, AhmedabadITA 1216/AHD/2026[2015-2016]Status: Disposed16 Oct 2026AY 2015-2016
- Hetal Vinodchandra Sheth, Ahmedabad vs The ITO, Ward-5(3)(1), AhmedabadITA 2370/AHD/2025[2014-15]Status: Disposed16 Oct 2026AY 2014-15
- Hetal Vinodchandra Sheth, Ahmedabad vs The ITO, Ward-5(3)(1), AhmedabadITA 2369/AHD/2025[2014-15]Status: Disposed16 Oct 2026AY 2014-15
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