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Facts
The appeals concern penalty proceedings under Section 271(1)(c) for Assessment Years 2009-10 and 2010-11, where original assessment orders were passed under Sections 147/144 of the Income Tax Act, 1961. The appellant's AR contended that notices were not served, thus denying the assessee an adequate opportunity of hearing at the first appellate stage.
Held
The Tribunal found that the National Faceless Appellate Centre (NFAC) had dismissed the appeals superficially without addressing the service of notices or the merits. Consequently, the Tribunal allowed the appeals for statistical purposes and restored the issues on merits to the CIT(A) for a fresh order, ensuring the assessee receives an adequate opportunity of hearing.
Key Issues
Whether the first appellate authority erred in dismissing appeals superficially without ensuring proper service of notices and providing adequate opportunity of hearing; and whether the matter should be restored for fresh adjudication on merits.
Sections Cited
271(1)(c), 147, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘B’: NEW DELHI
Before: SHRI G.S. PANNU & SHRI ANUBHAV SHARMA
Heard and perused the records.
In the captioned appeals an early Hearing Application is filed by the appellant on which Ld. AR has submitted that the appeals arise out of penalty proceedings u/s 271(1)(c) for AY 2009-10 and 2010-11 and the assessment orders for these assessment years were passed u/s 147/144 of the Income Tax Act 1961.
SA No. -147/Del/2024 Meter and Instruments Pvt. Ltd. 3. The Ld. AR submitted that as the notices were not served, adequate opportunity of hearing to the assessee was not given.,
As we go through the impugned orders, we observed that the first appeal was dismissed by the National Faceless Appellate Centre (NFAC) in a very superfluous manner, without even mentioning as to when and by what mode of notices of hearing were issued, and if at all assessee / appellant was served.
It also comes up that as First Appellate Authority (NFAC) has not at all touched the merits on the grounds. These aspects could not be defended at all by Ld. DR.
In the light of the aforesaid, we deem it appropriate to allow the appeals for and restore the issues on merits to the files of the Ld. CIT(A) for passing an order fresh after giving an adequate opportunity of hearing to the assessee.
Consequently, the appeals stand allowed, for statistical purpose, in terms of aforesaid direction and early hearing application becomes infructuous.
Order pronounced in the Open Court on 17 .05.2024