SAINATH SAKHARAM TARE,THANE vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, THANE, THANE

Facts

A search and seizure action was conducted on the Antariksh Group, which engaged the assessee for contractual services. During the search, documents related to the assessee were seized, leading the Assessing Officer (AO) to assess the assessee's income under section 153A r.w.s. 153C of the Income Tax Act. The AO questioned cash receipts and later initiated penalty proceedings under section 271 DA for contravention of section 269 ST.

Held

The Tribunal noted that while the assessee may not have fully explained its case before the CIT(A), the fact remained that the assessee was not heard before the impugned order was passed. Therefore, the Tribunal decided to remand the matter back to the CIT(A).

Key Issues

Whether the CIT(A) erred in passing an ex-parte order without granting sufficient opportunity of hearing to the assessee, and whether the action of the AO in assessing income and levying penalty was valid.