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Facts
The appeals arose from penalty proceedings under Section 271(1)(c) for AYs 2009-10 and 2010-11, based on assessments made under Section 147/144. The appellant's AR contended that notices were not served, denying adequate hearing opportunity. The first appeal before the National Faceless Appellate Centre (NFAC) was dismissed superficially without addressing the merits or the issue of notice service.
Held
The Tribunal observed that the NFAC dismissed the appeal in a "superfluous manner" without confirming notice service or touching upon the merits of the case. Consequently, the Tribunal allowed the appeals and remanded the issues to the CIT(A) for fresh adjudication after providing the assessee with an adequate opportunity of hearing.
Key Issues
Whether the first appellate authority (NFAC) erred in dismissing the appeal without ensuring proper notice service and without addressing the merits of the penalty proceedings.
Sections Cited
271(1)(c), 147, 144
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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