NARESH H. SHAH,MUMBAI vs. INCOME TAX OFFICER-25(3), MUMBAI

Facts

The assessee failed to file a return of income for the assessment year 2006-07 and filed it only in response to a notice u/s. 148, declaring an income of Rs.19,05,913/- after a survey action. The AO treated this entire returned income as concealed income and initiated penalty proceedings u/s. 271(1)(c). The Ld. CIT(A) dismissed the appeal because the assessee did not appear to explain the reasons for furnishing inaccurate particulars and concealing income, despite several opportunities.

Held

The Tribunal noted that the Ld. CIT(A) dismissed the appeal due to the appellant's non-appearance during proceedings, despite multiple opportunities. Therefore, the Tribunal deemed it appropriate to remand the matter back to the Ld. CIT(A) to decide the penalty imposed u/s. 271(1)(c) after providing a reasonable opportunity to the appellant to present their case.

Key Issues

Whether the penalty was rightly imposed without giving proper opportunity of hearing to the appellant and whether the penalty was rightly confirmed by the CIT(A).