2017 (9) TMI 1522 - AT - Income Tax

Penalty u/s 272A(2)(G) imposed - Held that - CIT(A) has passed a non-speaking exparte order, which is not sustainable in the eyes of law. Therefore, in the interest of justice, we set aside the issues in dispute to the file of the Ld. CIT(A) to decide the issues in dispute afresh, in accordance with law, after giving adequate opportunity of being heard to the parties and pass a speaking order. However, the Assessee is also directed to fully cooperate with the ld. CIT(A) and produce all the documents before him to substantiate his claim and not to take any unnecessary adjournment. Appeal filed by the Assessee stands allowed for statistical purpose.

Summary

Issues:
1. Imposition of penalty under section 272A(2)(G) without jurisdiction and adequate opportunity of being heard.
2. Validity of the order passed by the Ld. CIT(A) and principles of natural justice.
3. Dismissal of appeal due to non-appearance of the assessee.

Analysis:
1. The appeal was filed against the order of the Ld. CIT(A) confirming the penalty imposed under section 272A(2)(G) for a specific assessment year. The Assessee contended that the penalty was imposed without assuming jurisdiction as per law and without providing adequate opportunity of being heard. The Ld. Counsel argued that the order was against the principles of natural justice as it was passed ex-parte without considering the merits of the case. The Tribunal found merit in the Assessee's argument and set aside the issues to the file of the Ld. CIT(A) for a fresh decision after providing adequate opportunity of being heard.

2. The Ld. CIT(A) was criticized for passing a non-speaking ex-parte order without giving the Assessee sufficient opportunities to present their case. The Tribunal noted that the Ld. CIT(A) did not touch upon the merits of the case and dismissed the appeal due to non-appearance of the Assessee. Citing relevant case laws, the Ld. CIT(A) justified the dismissal. However, the Tribunal held that such an order was not sustainable in the eyes of the law as it violated the principles of natural justice. Therefore, the Tribunal directed the Ld. CIT(A) to decide the issues in dispute afresh after giving adequate opportunity of being heard to both parties and to pass a speaking order. The Assessee was also instructed to cooperate fully and produce all necessary documents.

3. The Tribunal allowed the Assessee's appeal for statistical purposes, emphasizing the importance of adhering to the principles of natural justice and providing adequate opportunity of being heard in legal proceedings. The decision to set aside the issues to the Ld. CIT(A) for a fresh decision aimed at ensuring a fair and just resolution in accordance with the law. The Tribunal's order was pronounced openly on a specified date, concluding the legal proceedings in this matter.