2021 (2) TMI 362 - AT - Income Tax

Penalty u/s. 271(1)(b) - notices u/s. 143(2) and 142(1) was issued and on that date fixed for hearing i.e. 14.09.2015, the assessee has neither attended nor has furnished any written reply - assessee has also neither attended nor filed any explanation in response to the show cause notice issued u/s. 271(1)(b) r.w.s. 274 - HELD THAT - Assessee referring to the paper book wherein as regards the date of hearing fixed on 14.09.2015 submitted that the assessee had sought an adjournment and therefore, it is the contention of the assessee that they have responded to the notice of the Department. However, when we peruse the penalty order, we find there is no mention in respect of these submissions of the assessee. Therefore, we are of the considered view, in the interest of justice, one more opportunity may be granted to the assessee so that he may justify his stand before the Assessing Officer and the Assessing Officer will decide the case after bringing on record all the submissions placed forth by the assessee while complying with the principles of natural justice. Appeals of the assessee allowed for statistical purposes.

Summary

Issues Involved:
Appeals against penalty imposed under section 271(1)(b) of the Income Tax Act, 1961 for assessment years 2008-09 to 2013-14.

Analysis:

Issue 1: Penalty Imposed under Section 271(1)(b) of the Income Tax Act
The appeals revolved around the imposition of penalties under section 271(1)(b) of the Income Tax Act, 1961. The Assessing Officer had levied penalties due to the non-compliance of the assessee regarding the hearing dates and the failure to provide written replies or attend the hearings. The assessee neither attended the hearings nor responded to show cause notices issued under section 271(1)(b) r.w.s. 274 of the Act. The Assessing Officer concluded that the assessee had committed a default, leading to the imposition of penalties.

Issue 2: Lack of Mention of Assessee's Submissions
During the hearing, the counsel for the assessee argued that the assessee had sought an adjournment and contended that they had responded to the Department's notice. However, the penalty order did not reflect these submissions by the assessee. In the interest of justice and ensuring the principles of natural justice, the Tribunal decided to grant the assessee another opportunity to present their case before the Assessing Officer. The Tribunal set aside the order of the Ld. CIT(Appeals) and directed the matters to be restored to the file of the Assessing Officer for a fresh decision based on all submissions made by the assessee.

Final Decision:
The Tribunal allowed all the appeals of the assessee in ITA Nos. 2753 to 2758/PUN/2017 for statistical purposes. The order was pronounced on the 2nd day of February, 2021. The Tribunal's decision highlighted the importance of providing the assessee with a fair opportunity to present their case and ensuring that all submissions are duly considered before imposing penalties under the Income Tax Act.