NIRMAL MALHOTRA,NEW DELHI vs. DCIT, CENTRAL CIRCLE- 17, NEW DELHI

This appeal filed by the assessee is directed against the order dated 10.01.2018 of CIT(A)- 27, New Delhi relating to assessment year 2009-10.

The assessee in this appeal has challenged the order of the ld. CIT(A) in dismissing the appeal filed by him for non-prosecution and thereby sustaining the penalty of Rs.24,530/- levied by the Assessing Officer u/s 271(1)(c) of the I.T. Act, 1961. 3. After hearing both the sides, I find the Assessing Officer in the assessment order made certain addition on account of income from house property, since the assessee failed to submit the rent agreement for the purpose of determining the fair rental value of the property. The ld. CIT(A) gave part relief to the assessee and the Assessing Officer thereafter initiated penalty proceedings u/s 271(1)(c) of the I.T. Act. Rejecting the various explanations given by the assessee and observing that the assessee has failed to disclose the correct income in the return, the Assessing Officer levied penalty of Rs.24,530/- u/s 271(1)(c) of the I.T. Act. Since there was delay in filing of the appeal and there was non-appearance, the ld. CIT(A) applying the ratio laid down by the Hon’ble Supreme Court in the case of B.N. Bhattacharjee and Another reported in 118 ITR 461 and the decision of the Hon’ble Bombay High Court in the case of M/s Chemipol vs. Union of India in Excise Appeal No.62 of 2009 dismissed the appeal and sustained the penalty levied by the Assessing Officer. Since the ld. CIT(A) has not decided the issue on merit and has dismissed the appeal for non-prosecution and has not condoned the delay in filing of the appeal, therefore, considering the totality of the facts of the case and in the interest of justice, I deem it proper to restore the matter to the file of the ld. CIT(A) with a direction to condone the delay which was due to his old age and illness and decide the appeal on merit by passing a speaking order. Needless to say, the ld. CIT(A) shall give due opportunity of being heard to the assessee and decide the issue as per fact and law. I hold and direct accordingly. The appeal filed by the assessee is accordingly allowed for statistical purposes.

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