JIVAN COMMERCIAL CO-OPERATIVE BANK LTD.,RAJKOT-GUJARAT vs. THE ASSISTANT COMMR. INCOME TAX, CIRCLE-2(1), RAJKOT-GUJARAT

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ITA 452/RJT/2018Status: DisposedITAT Rajkot11 November 2022AY 2010-112 pages
AI SummaryRemanded

What did the Tribunal hold?

The tribunal set aside the penalty order and remanded the issue back to the AO. The AO was directed to decide the matter afresh after providing the assessee an opportunity to be heard and to submit evidence.

What were the facts?

The assessee's appeal was against a penalty order under section 271(1)(c) for AY 2010-11. The assessee did not appear before the lower authorities, leading to the penalty being imposed. The penalty order was passed without hearing the assessee.

What were the issues?

Whether the penalty order was validly passed without affording the assessee an opportunity of being heard. The procedural fairness in imposing the penalty.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “RAJKOT” BENCH, RAJKOT

Before: SHRI WASEEM AHMED&

For Appellant: Shri B. D. Gupta, Sr. D.R

O R D E R

PER Ms. MADHUMITA ROY - JM:

1.

The instant appeal at the instance of the assessee is directed against the order dated 04.10.2018 passed by the Ld. Commissioner of Income Tax (Appeals) – 2, Rajkot arising out of the penalty order dated 31.03.2017 passed by the Learned ACIT, Circle-2(1), Rajkot under section 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) for Assessment Year 2010-11.

Jivan Commercial Co-operative Bank Ltd. vs. ACIT Asst.Year –2012-13 - 2 – 2. None appeared on behalf of the assessee at the time of call. It appears from the records that the assessee has not co-operated with the authorities below i.e. before the Ld. AO and the Ld. CIT(A) as well. Hence, having no other alternative, the penalty has been imposed by the Ld. AO which was further confirmed by the First Appellate Authority. However, it is an admitted position that the order imposing penalty has been made by the authorities below without hearing the assessee and decided only on the basis of the records available before it. Hence, in order to prevent the miscarriage of justice, we find it fit and proper to set aside the issue to the file of the Learned AO for deciding the same afresh upon granting the opportunity of being heard to the assessee and upon considering the evidences which the assessee may choose to file in support of his claim at the time of hearing of the matter. The assessee’s appeal is, therefore, allowed for statistical purposes.

3.

In the result, assessee’s appeal is allowed for statistical purposes.

This Order pronounced on 11/11/2022

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