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Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI
Before: SHRI SS VISWANETHRA RAVI & SHRI JAGADISH
the Act on 23.09.2021 and penalty order passed u/s 271(1)(c) of the Act dated 29-01-2022.
The Ld. AR, at the outset, submitted that the quantum assessment orders as well as penalty orders passed by lower authorities are ex-parte orders. Accordingly, Ld. AR sought remand back of impugned matters to the Ld. AO so that the assessee could substantiate his claim before the Ld. AO.
The Ld. Sr. DR submitted that the assessee remained negligent in attending any of the proceedings.
We have heard the rival submissions, and perused the materials available on record. The A.O has made the addition of entire sale proceeds of Rs. 6,55,00,000/- as short term capital gain without allowing deduction of cost of acquisition. The property was sold by the bank through auction to recover of the loan advanced to assessee.
The Bench observed that the notice u/s 142(1) was issued on 09-02- 2021 and Section 144/147 of the Act order was passed on 23-09- 2021, which was the Covid pandemic period. The Assessee did not appear before the ld CIT(A) despite being given sufficient opportunities. However, the Bench accepts the submission of Ld. AR & 832/Chny/2024 :- 3 -: by observing that after all the orders of the lower authorities are ex- parte orders and keeping in mind the principles of natural justice, the assessee be provided with another opportunity of hearing. Therefore, the impugned orders are set-aside. However, we deem it proper to remand the matters back to the file of the Assessing Officer to pass de-novo assessment. The AO is at liberty to initiate fresh penalty proceeding u/s 271(1)(c) of the Act. The assessee shall appear before the Assessing Officer and furnish complete details for his fresh consideration subject to the condition of payment of Rs.2,500/- each towards cost in favour of the State Legal Aid Authority at Hon’ble Madras High Court within 30 days from the date of receipt of this order.
In the result, both the appeals of the assessee are allowed for statistical purposes.
Order pronounced in the open Court on 22nd May, 2024.