2015 (3) TMI 1341 - AT - Income Tax

Penalty u/s 271(1)(c) - assessee on various dates had not attended the assessment proceedings - admission of additional evidence - Held that - Though it is a fact that assessee was provided a number of opportunities to submit details as mentioned in Ld. CIT(A) s order yet the fact remains the additional evidence go to the root of the matter, which were not taken into account by CIT(A) especially in view of the fact that A.O. had issued remand report also. We deem it appropriate to set aside the order of Ld. CIT(A) and remit back the issue to the office of Ld. CIT(A) who should readjudicated on the grievances of the assessee after taking into account the additional evidence and remand report. We also direct the assessee to present itself before Ld. CIT(A) for speedy disposal of its appeal and the opportunity granted to assessee should not be misutilized. - Decided in favour of assessee for statistical purposes.

Summary

Issues: Appeal against Ld. CIT(A) order - Rejection of additional evidence by Ld. CIT(A) - Opportunity provided to assessee - Assessment proceedings under section 143(3) - Remand report from A.O. - Setting aside order of Ld. CIT(A) - Remitting issue back for readjudication - Proper opportunity of being heard.

In this case, the appellant filed an appeal against the order of the Ld. CIT(A) dated 18.03.2013, challenging various additions made by the Assessing Officer (A.O.). The first ground of appeal raised by the assessee related to the rejection of additional evidence by the Ld. CIT(A). The Ld. A.R. highlighted that the Ld. CIT(A) did not accept the additional evidence, stating that the assessee was provided sufficient opportunity. The A.O. had submitted comments on merits, which the Ld. CIT(A) failed to consider. The Ld. CIT(A) had also noted that the assessee had not attended the assessment proceedings on various dates, leading to the imposition of a penalty under section 271(1)(c). Despite providing multiple opportunities, the Ld. CIT(A) did not consider the additional evidence, which was crucial to the matter, as it was not taken into account by the Ld. CIT(A) even though the A.O. had issued a remand report. Consequently, the Tribunal set aside the order of the Ld. CIT(A) and remitted the issue back for readjudication, directing the assessee to present itself before the Ld. CIT(A) for a speedy disposal of its appeal, ensuring that the opportunity granted to the assessee was not misutilized. The Tribunal emphasized that the assessee should be given a proper opportunity to be heard, and the appeal was allowed for statistical purposes.

In conclusion, the Tribunal's decision focused on the rejection of additional evidence by the Ld. CIT(A) and the failure to consider crucial evidence that went to the root of the matter. The Tribunal emphasized the importance of providing a proper opportunity for the assessee to be heard and directed the Ld. CIT(A) to readjudicate on the grievances after taking into account the additional evidence and the remand report from the A.O. The decision highlighted the significance of ensuring a fair and thorough consideration of all relevant evidence in the appeal process.