DEEPAK COMMUNICATION,AJIT NAGAR vs. ASSESSING OFFICER, DELHI

This appeal by the assessee is directed against an ex-parte order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 08.09.2023, for Assessment Year 2017-18.

The solitary issue, in the present appeal by the assessee is against levy of penalty u/s.271AAC(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) amounting to Rs.1,04,674/-. The assesssee had deposited cash amounting to Rs.13,55,000/- during demonetization period i.e. between 09.11.2016 to 30.12.2016 in his bank account maintained with Yes Bank Ltd. Krishna Nagar Delhi, account no. 226190000295. The return of income was filed (AY 2017-18) by the assessee u/s.139(1) of the Act in response to the notice issued u/s.142(1) of the Act. The Assessing Officer (AO) vide assessment order dated 18.12.2019 passed u/s.144 of the Act made addition of the entire amount of Rs.13,55,000/- u/s.69A r.w.s. 115BBE of the Act. Penalty proceedings u/s.271AAC(1) of the Act were also initiated. Notice u/s. 274 r.w.s. 271AAC(1) of the Act dated 17.09.2021 was issued to the assesesee. The AO in ex-parte proceedings levied penalty u/s.271AAC(1) of the Act Rs.1,04,674/- i.e. @10% of the tax payable u/s.115BBE of the Act. The assessee filed appeal against the penalty order dated 16.03.2022. The assessee filed appeal before the CIT(A). The CIT(A) vide impugned order confirmed the penalty order.

I find that the impugned order has been passed in ex-parte proceedings. In the interest of justice this appeal is restored to the CIT(A) for fresh adjudication after affording reasonable opportunity of making submissions to the assessee, in accordance with law.

The assessee upon service of notice by the CIT(A) shall respond to the same, without fail.