M/S RUNWAL FABRICS PRIVATE LIMITED,BIJAPUR vs. JOINT COMMISSIONER OF INCOME TAX BIJAPR RANGE, BELGAUM

The ld CIT(A) has confirmed the penalty levied u/s 271E of the Act in an ex-parte order passed by him.

The ld AR submitted that the appeal was posted by ld CIT(A) for hearing on 13/9/2017. Since the assessee was not in a position to appear before him on that date, it filed a petition seeking adjournment of the case vide its letter dated 12/9/2017 before ld CIT(A). However, the ld CIT(A) has proceeded to dispose of the appeal ex-parte without taking cognizance of the adjournment letter filed by the assessee. Accordingly the ld AR prayed that the assessee may be provided with one more opportunity before ld CIT(A) to present its case.

The ld DR did not object to the prayer made by ld AR.

It is the submission of the assessee in the Statement of Facts that it has filed an adjournment letter before Ld CIT(A). However, the ld CIT(A) has passed the order ex-parte, without considering the adjournment letter and further the Ld CIT(A) has not adjudicated the case on merits. Accordingly, we are of the view that, in the interest of natural justice, the assessee should be provided with an opportunity to present its case before ld CIT(A). Accordingly we set aside the order passed by ld CIT(A) and restore the impugned issues to his file for adjudicating them on merits after affording adequate opportunity of being heard to the assessee.

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