RAMESH D CHANDAK ,KOLKATA vs. ITO, WARD - 59(1)(TDS), KOLKATA , KOLKATA

The assessee in the present case is an individual. As noticed by the Assessing Officer, there was a failure on the part of the assessee to deposit the tax deducted at source within the time prescribed in the relevant provisions of the Act. Penalty proceedings under section 221 of the Act, therefore, were initiated by the Assessing Officer and since no explanation whatsoever was offered by the assessee as regards the reason

We have heard the arguments of both the sides and also perused the relevant material available on record. The ld. Counsel for the assessee has made an attempt to explain the reason for the default committed by the assessee in terms of delay in payment of tax deducted at source. The ld. D.R., however, has raised an objection by submitting that no explanation whatsoever was offered by the assessee either before the Assessing Officer or before the ld. CIT(Appeals) for the said default. He has contended that if the Tribunal is inclined to entertain the explanation now being offered on behalf of the assessee for the first time, opportunity may be given to the Assessing Officer to consider and examine the same. The ld. Counsel for the assessee has also submitted that since the said explanation could not be offered by the assessee before the authorities below for want of proper and sufficient opportunity, the matter may be sent back to the Assessing Officer. We accordingly set aside the impugned order of the ld. CIT(Appeals) and restore the matter to the file of the Assessing Officer for deciding the same afresh on merit after giving proper and sufficient opportunity of being heard to the assessee.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on January 18th, 2019.