SHRI.RAJESH SURESH VERNEKAR,DAVANGERE vs. THE INCOME TAX OFFICER WARD-1(5), DAVANGERE

The sole disputed issue is in respect of levy of penalty under Section 271F by the Assessing Officer and was confirmed by the learned CIT(Appeals).

At the time of hearing, none appeared on behalf of the assessee or any adjournment petition was filed. Based on the submissions of the learned Departmental Representative and material available on record, the case was heard. We considering the submissions of the learned Departmental Representative and material find the assessee has challenged and the order of penalty under Section 271F of the Act. The assessee has filed an appeal against the penalty order with CIT(Appeals) and whereas the learned CIT(Appeals) has granted only one date of hearing and confirmed the penalty. We found the order passed by the learned CIT(Appeals) is exparte order. Therefore considering the principle of natural justice and the fact that only one date of hearing is granted and further the assessee was not heard on merits of the issue. We consider it proper to remit the entire disputed issue to the file of learned CIT(Appeals) for adjudication afresh. Accordingly we restore the disputed issue to the file of learned CIT(Appeals) to adjudicate on merits and pass a speaking order and further the assessee should be provided adequate opportunity of hearing and shall co-operate in early disposal of the appeal and allow the grounds of appeal