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Facts
The assessee's appeals were against orders of penalty passed under sections 271A and 271(1)(b) of the Income Tax Act, 1961. The penalties were confirmed by the CIT(A) due to the assessee's non-response to hearing notices.
Held
The Tribunal noted that the quantum assessment had been restored to the AO subject to a cost of Rs.10,000/-. In the interest of justice, the assessee was granted one more opportunity to present their case.
Key Issues
Whether the assessee had a reasonable opportunity to present their case, given the alleged non-service of hearing notices, and if the penalties imposed were justified.
Sections Cited
271A, 271(1)(b)
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Income Tax Appellate Tribunal, “A” BENCH : BANGALORE
Before: SHRI GEORGE GEORGE K & SHRI LAXMI PRASAD SAHU
Per George George K, Vice President:
These appeals at the instance of the asessee are directed against two orders of CIT(A) dated 27.09.2023 and 28.09.2023 for Assessment Year 2014-15. The orders of the CIT(A) arise out of the orders of penalty passed under sections 271A and 271(1)(b) of the Income Tax Act, 1961 (herein after called ‘the Act’).
At the very outset, we notice that orders of penalty passed under sections 271A and 271(1)(b) of the Act were confirmed by the CIT(A) since there was no response by the assessee to the notices issued from the Office of the First Appellate Authority (FAA).
The learned AR submitted that hearing notices issued from the Office of the CIT(A) was never served on the assessee’s email or assessee could have missed the same since it could have settled in the assessee’s spam folder of the mail. The learned AR further submitted that as regards the quantum assessment, the Tribunal had restored the matter to the AO for fresh examination subject to payment of cost of Rs.10,000/-. Learned AR has placed on record the order of the Tribunal in the quantum assessment for Assessment Year 2014-15 in (order dated 07.12.2023).
The learned DR supported the orders of the AO and CIT(A).
We have heard the rival submissions and perused the material on record. It is the claim of the assessee that he was never in receipt of the notices issued from the Office of the CIT(A). Be it as it may, we find that in the quantum assessment, the matter has been restored to the files of the AO subject to the condition that assessee pays the cost of Rs.10,000/-. In the interest of justice and equity, we are of the view that assessee has to be provided with one more opportunity to present his case. Accordingly, the matter is restored to the files of the AO since the quantum assessment is pending before him. Assessee shall co-operate with the Revenue and shall not seek unnecessary adjournment in the matter. It is ordered accordingly.
In the result, appeals filed by the assessee are allowed for statistical purposes.