ITAT Agra Judgments — February 2020

The Tribunal held that the penalty order was illegal and arbitrary due to the defective show cause notice, following the precedent set by the Karnataka High Court and its own coordinate bench. However, it allowed the revenue to seek restoration if the Supreme Court decides the issue in its favor.

The Tribunal held that the ex parte order passed by the CIT(A) without a proper hearing and without considering the merits of the case violates the principles of natural justice. Therefore, the appeal was restored to the CIT(A).