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

Facts

A search and seizure operation was conducted on Antariksh Group, a construction company, and the assessee, who provided contractual services, was found to have received cash amounting to Rs. 1,96,38,351/-. The assessee initially admitted receiving cash but later retracted their statement. The Assessing Officer (AO) imposed a penalty under section 271DA for contravening section 269ST.

Held

The ITAT found that the assessee was not given a reasonable opportunity of being heard by the CIT(A) before an ex-parte order was passed. Therefore, the Tribunal decided to remand the matter back to the CIT(A) to consider the submissions after affording a proper hearing.

Key Issues

Whether the CIT(A) erred in passing an ex-parte order without providing an adequate opportunity of being heard to the appellant. Whether the penalty imposed under section 271DA was justified without considering the full facts and circumstances.