KALE ENTERTAINMENT & RESORTS PVT. LTD.,MUMBAI vs. ITO 12(3)(2), MUMBAI

Aggrieved by confirmation of penalty u/s 271(1)(c) for Rs.3.08 Lacs, the assessee is in further appeal before us. At the time of hearing, the assessee, vide letter dated 08/03/2021, sought adjournment. However, Ld. Sr. DR pointed out that the impugned order is an ex-parte order since the assessee failed to appear before learned first appellate authority.

Upon perusal of case records, we agree that the assessee remained negligent in attending the appellate proceedings. However, keeping in view the principle of natural justice, we are inclined to provide another opportunity of hearing to assessee to substantiate his case before learned first appellate authority. Accordingly, we set-aside the impugned order and restore the matter back to the file of Ld. CIT(A) for re-adjudication after providing another opportunity of hearing to the assessee. The assessee, in turn, is directed to substantiate its claim failing which Ld. CIT(A) shall be at liberty to proceed with adjudication on the basis of material on record.

The appeal stands allowed for statistical purpose.