M/S OCEAN HEALTHCARE PRIVATE LIMITED,CHENNAI vs. ITO, CIRCLE(1),LTU, CHENNAI

Aggrieved by confirmation of penalty u/s 271(1)(c) for Rs.133.76 Lacs for Assessment Year (AY) 2016-17, the assessee is in further appeal before us. The impugned order has been passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 09-01-2024 in the matter of penalty levied by Ld. Assessing Officer [AO] u/s. 271(1)(c) of the Act on 28-09- 2022. It could be seen that the appeal has been dismissed by Ld. CIT(A) for non-prosecution. The Ld. AR has prayed for another opportunity of hearing which has been opposed by Ld. Sr. DR.

It emerges that the assessee was denied deduction u/s 32AC. The Ld. AO held that the assessee deliberately concealed its income and furnished inaccurate particulars of income and therefore, levied impugned penalty. The assessee did not make any representation during first appellate proceedings. 3. Though the assessee has remained negligent, however, keeping in mind the principle of natural justice, we deem it fit to grant another opportunity to the assessee to substantiate its case. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(A) for de novo adjudication with a direction to the assessee to substantiate its case forthwith. A reasonable opportunity of hearing shall be granted to the assessee. The assessee is directed to substantiate its case forthwith failing which Ld. CIT(A) shall be at liberty to proceed with the disposal of the appeal on merits. 4. The appeal stand allowed for statistical purposes. Order pronounced in open court on 17th April, 2024.