THOMAS INTERNATIONAL PUBLISHING CO. INDIA PVT. LTD.,NEW DELHI vs. DCIT, NEW DELHI

PDF · subscribers
ITA 3961/DEL/2015Status: DisposedITAT Delhi27 July 2018AY 2007-083 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) passed ex-parte orders without clearly establishing service of hearing notices on the assessee. Upholding the principles of natural justice, the Tribunal set aside the issue for fresh adjudication.

What were the facts?

The assessee appealed against penalties levied under Section 271(1)(c) for two assessment years. The CIT(A) confirmed the penalties ex-parte, stating the assessee did not comply with hearing notices.

What were the issues?

Whether the ex-parte orders passed by the CIT(A) violated the principles of natural justice due to lack of proper notice and opportunity of being heard to the assessee.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI

Hearing: 25.07.2018Pronounced: 27.07.2018

Heard together (2 matters)

ITA No. 3961/Del/2015
ITA No. 3962/Del/2015

Read from the judgment's own cause title. This page is filed under one of them.

ORDER Per N. K. Saini, AM: These appeals by the assessee are directed against the separate orders each dated 10.03.2015 of ld. CIT(A)-19, New Delhi.

2.

Since, the appeals relate to the same assessee, having common issues, were heard together, so, these are being disposed off by this consolidated order for the sake of convenience and brevity.

3.

The only grievance of the assessee in these appeals relate to the confirmation of penalty of Rs.4,52,360/- for the assessment year 2007-08 and Rs.3,86,614/- for the assessment year 2008-09 respectively levied by the AO u/s 271(1)(c) of the Income Tax Act, 1961.

1.

2 & 3962/Del/2015 Thomas International Publishing Co. 4. Facts of the cases in brief are that the AO levied the impugned penalties for the reasons that the disallowances made by the AO were upheld by the ld. CIT(A).

4.

Being aggrieved the assessee carried the matter to the ld. CIT(A) who sustained the penalties by passing the ex-parte orders. He simply stated that the assessee did not comply to the notices issued for hearing and that the notices sent by Speed Post had not returned unserved.

5.

Now the assessee is in appeal. During the course of hearing, the ld. Counsel for the assessee submitted that no notice for hearing was served upon the assessee, therefore, the opportunity of being heard was not provided to the assessee and the impugned orders had been passed in violation of the principles of natural justice.

6.

In his rival submissions, the ld. Sr. DR supported the impugned orders passed by the ld. CIT(A) and further submitted that the ample opportunities of being heard were provided by the ld. CIT(A), however, the assessee did not cooperate and never turned up whenever the cases were fixed for hearing, so, there was no alternative except to decide the appeals of the assessee ex-parte.

7.

We have considered the submissions of both the parties and perused the material available on the record. In the present case, it is an admitted fact that the impugned orders were passed by the ld. CIT(A) ex-parte, however, it is not mentioned that the notice for 3 & 3962/Del/2015 Thomas International Publishing Co. hearing were served upon the assessee. He simply stated that as per the India Post Website, the last notice was duly delivered. However, it was not brought on record that the notice for hearing was served upon whom, whether on the assessee or any other person. On the contrary, the ld. Counsel for the assessee stated that no notice for hearing was served upon the assessee. It is well settled that nobody should be condemned unheard as per the maxim “audi alteram partem”. We, therefore, by keeping in view the principles of natural justice, deem it appropriate to set aside this issue back to the file of the ld. CIT(A) to be adjudicated afresh in accordance with law after providing due and reasonable opportunity of being heard to the assessee.

8.

In the result, appeals of the assessee are allowed for statistical purposes. (Order Pronounced in the Court on 27/07/2018)

More judgments on Section 271(1)(c)

All 25,141 judgments and leading authorities on Section 271(1)(c) →

Recent GST High Court judgments

Search GST case law →