SRAVANTHI RENEWABLE ENERGY PVT. LTD.,GURGAON vs. ACIT, CIRCLE-4(1), GURGAON

By means of this Stay Petition, the applicant seeks stay of demand of Rs. 9,76,12,373/- which has been created in view of penalty imposed u/s 271(1)(c) of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short] for A.Y 2014-15.

The ld. Authorised Representative submits that although the quantum addition has been accepted by the assessee-applicant, penalty was challenged before the ld. first appellate authority. It has further been submitted that the assessee did not receive the notices issued by the ld. CIT(A) and, therefore, the appeal of the assessee came to be dismissed exparte qua the assessee-applicant.

The ld. Authorised Representative has also filed an affidavit in this regard wherein it has been averred that the assessee company did not receive the notices issued from time to time by the ld. first appellate authority. It has been prayed that the assessee-applicant be granted complete stay of demand.

The ld. Sr. DR opposed the applicant’s prayer for stay of demand but on a query from the bench, had no objection if the appeal of the assessee was restored to the file of the ld. first appellate authority with a direction to be adjudicated on merits.

Having heard both parties and after having perused the material on record, we note that the ld. first appellate authority has dismissed the assessee’s appeal in limine for want of proper prosecution. It is the submission of the assessee-applicant that notices for hearing were not received and an affidavit to the effect has also been filed before the Bench. Therefore, in view of the exparte order passed by the ld. CIT(A), which has been passed without considering and examining the merits of the case, we deem it proper to restore the appeal to the file of the ld. CIT(A). The ld. first appellate authority is directed to adjudicate the appeal on merits after giving proper opportunity of being heard to the assessee-applicant.

As the appeal of the assessee stands disposed of, the Stay Petition becomes infructuous and is dismissed and the appeal of the assessee stands allowed for statistical purposes.