LG ELECTRONICS INDIA PRIVATE LIMITED,DELHI vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 13(1), NEW DELHI
What did the Tribunal hold?
The Tribunal noted that the assessee was not given adequate opportunity to explain the reasons for non-compliance before the CIT(A) confirmed the penalty. The Tribunal restored the matter back to the CIT(A) for a fresh decision.
What were the facts?
The assessee failed to get his accounts audited as per Section 44AB of the Income-tax Act, 1961, leading to a penalty under Section 271B. The assessee claimed he could not attend proceedings before the CIT(A) due to severe health issues (blood cancer).
What were the issues?
Whether the CIT(A) provided adequate opportunity to the assessee to explain the reasons for non-compliance before confirming the penalty, considering the assessee's health condition.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI ‘E’ BENCH,
Before: MS. MADHUMITA ROY, & SHRI NAVEEN CHANDRA
This appeal by the assessee is preferred against the order of CIT(A)-28, dated 18.07.2023 for A.Y 2013-14.
None present for and on behalf of the assessee. From a perusal of record, it is evident that several opportunities were given to the assessee to present its case. However, the assessee did not avail these
Page 1 of 4 [A.Y. 2013-14] Mohit Garg Vs. Dy. CIT opportunities. In these circumstances, we are left with no option but to proceed with the appeal ex parte qua the assessee on the basis of material available on record.
The ld. DR was heard at length. Case record carefully perused.
At the very outset, the ld. DR submitted that this is a case of the assessee having gross receipts above the prescribed limit of section 44AB of the Income-tax Act, 1961 [the Act, for short].
The assessee was required to get his accounts audited as per provisions of section 44AB of the Act which he failed to do so and as consequence, penalty u/s 271B of the Act of Rs. 1,50,000/- was levied on the assessee.
From a perusal of record, we find that the ld. CIT(A) has confirmed the penalty and the assessee’s grievance is that the ld. CIT(A) has not given adequate opportunity to explain the reasons before confirming the penalty u/s 271B of the Act. From the record, we find that the assessee has submitted an affidavit stating that he was suffering from blood cancer and because of his deteriorating health condition, he could not Page 2 of 4 [A.Y. 2013-14] Mohit Garg Vs. Dy. CIT attend before the ld. CIT(A) to explain the cause of failure of getting his books audited.
From a perusal of the affidavit filed by the assessee, we find that because of the dire health conditions, the assessee could not attend the proceedings before the ld. CIT(A) and explain his position. In view of the above facts and circumstances and in the interest of justice and fair play, we are of the considered view that the matter be restored back to the file of the ld. CIT(A) to decide the issues afresh after allowing adequate opportunity of being heard to the assessee. The assessee is also directed to provide necessary information /documents as required by the authorities.
In the result, the appeal of the assessee in is allowed for statistical purposes.
The order is pronounced in the open court on 05.08.2025.
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