SAINATH SAKHARAM TARE,THANE vs. ADDITIONAL COMMISSIONER OF INCOME TAX, CENTRAL RANGE, THANE, THANE

Facts

A search and seizure action was conducted on Antariksh Group, an assessee providing contractual services. During the assessment proceedings, the assessee admitted to receiving cash of Rs. 2,50,40,070/- from Antariksha group and agreed to offer income at 5%. The AO initiated penalty proceedings under section 271DA for contravening section 269ST.

Held

The Tribunal found that although the appellant did not explain its case before the Ld. CIT(A) due to various reasons, the fact remained that the assessee was not heard before the impugned order was passed. Therefore, the matter was remanded back to the Ld. CIT(A).

Key Issues

Whether the Ld. CIT(A) erred in passing an ex-parte order without granting an opportunity of being heard to the appellant, and whether the penalty under Section 271DA was rightly imposed.