NIRMAL TRADERS,AURANGABAD vs. ASSISTANT COMMISSIONER OF INCOME-TAX, CPC - TDS, GHAZIABAD

Briefly stated, the facts of the case are that the AO issued notice u/s.142(1) on 12-07-2019 which was served upon the assessee but remained uncomplied with. On being show caused as to why penalty u/s.272A(1)(d) be not imposed, the assessee neither attended the proceedings nor filed any reply. This led to the imposition of penalty of Rs.10,000/-, which came to be affirmed in the first appeal.

We have heard the ld. DR and gone through the relevant material on record. There is no appearance from the side of the assessee. As such, we are going to dispose of the appeal ex parte qua the assessee on merits. It is seen that the assessee did not attend the proceedings before the AO. It was stated before the ld. CIT(A) that the notice, leading to the imposition of penalty, was sent at the address of the erstwhile Chartered Accountant and was never served on the assessee. In view of the above factual scenario, it is clear that the penalty has been imposed without giving proper opportunity of hearing to the assessee. Under these circumstances, we are of the considered opinion that the ends of justice would meet adequately if the impugned order is set-aside and the matter is restored to the file of AO. We order accordingly and direct him to pass the penalty order afresh after allowing reasonable opportunity of hearing to the assessee.

In the result, the appeal is allowed for statistical purposes