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Facts
The assessee filed appeals against penalty orders passed under Section 271D of the Income Tax Act for assessment years 2018-19 and 2019-20. The assessee did not file any submissions before the Ld. CIT(A), who consequently confirmed the additions.
Held
The Tribunal held that while the assessee failed to provide submissions, they should not be deprived of substantive justice. Therefore, the orders of the Ld. CIT(A) were set aside and restored for re-adjudication after providing an opportunity of hearing.
Key Issues
Whether the assessee should be denied substantive justice due to failure to file submissions before the lower appellate authority, and if the matter should be restored for fresh adjudication.
Sections Cited
250, 271D
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Income Tax Appellate Tribunal, DELHI “A” BENCH: NEW DELHI
Before: SHRI MAHAVIR SINGH & SHRI MANISH AGARWAL
ORDER
PER MANISH AGARWAL, AM :
The captioned appeals are filed by assessee against the separate orders, both dated 30.03.2024 passed by Ld. Commissioner of Income Tax (A)-30, New Delhi [“Ld.CIT(A)”] in Appeal No.10337/2017-18 and 10564/2018-19 u/s 250 of the Income Tax Act, 1961 [“the Act”] arising out of penalty orders, both dated 21.09.2022 passed u/s 271D of the Act pertaining to assessment year 2018-19 & 2019-20 respectively.
At the time of hearing, no one attended the proceedings on behalf of the assessee. However, the Revenue is represented by Ld. Sr.DR who supports the orders of lower authorities and requested for the confirmation of the same.
Heard the contention of Ld. Sr. DR and perused the material available on record. From the perusal of the appellate orders, it is seen that Ld. CIT(A) has provided several opportunities to the assessee however, the assessee failed to file any submission, thus the Ld. CIT(A) was compelled to confirm the additions made by the AO. It is true that assessee has not filed any submission before Ld. CIT(A) in support of the grounds of appeals taken but due to that reason alone, assessee should not be deprived of substantive justice. In view of these facts and circumstances of the case and in the interest of justice, we set aside the order of Ld. CIT(A) and restore back to the file of Ld. CIT(A) to re-adjudicate the same in accordance with law after providing the opportunity of hearing to the assessee. The assessee is also directed to participate before the Ld. CIT(A) and file all the necessary evidences in support of the grounds of appeal taken in the appeals. With these directions, grounds of appeal taken by the assessee in these appeals are partly allowed for statistical purposes.
In the result, both appeals of the assessee are partly allowed. Order pronounced in the open Court on 12.12.2025.