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TMI Blog1983 (3) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... ated proceedings u/s 18 (1) (a) of the Act and issued show cause notices. The WTO fixed the cases for hearing on 20th April 1978 before which the assessee by a petition dt. 18th April 1978 wanted an adjournment and the said adjournment was granted. Thereafter, the WTO revised the assessment orders, giving effect to the appellate orders on 30th March 1979. He, however, fixed for hearing the penalty cases for all the years under appeal on 28th March 1980 by his letter dt. 26th March 1980. The WTO having observed that nobody appeared on the date of hearing nor was there any petition for adjournment levied penalties of Rs. 36,477, Rs. 20,700, Rs. 2,604 and Rs. 3,009 respectively for the four assessment years under appeal. 3. The assessee app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt sought an adjournment and the WTO also refixed the hearing on 5th May, 1978.From the assessment records it cannot, however, be ascertained what happened afterwards. It was, however, stated by the learned counsel of the appellant that the appellant sought an adjournment of the hearing on the ground that the assessment orders were under appeal and the reply in this regard would be submitted after the appeals were decided. Thereafter the WTO revised the assessment orders for all these years giving effect to the appellate orders of the AAC on 30th March 1979. On 26th March 1980 he issued a letter to the appellant fixing the hearing of the penalty proceedings u/s 18 (1) (a) and 18 (1) (c) for the assessment years 1971-72 to 1974-75 on 28th Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot attended with a specific provision for giving a hearing, the assessee should be given such opportunity (Commr. of Agrl IT vs. Smt. Parukutti Amma (1976) 105 ITR 79 (Kar). In the instant case, as it is found, the WTO issued notices for hearing of the penalty proceedings u/s 18 (1) (a) and 18(1) (c) for the assessment years 1971-72 to 1974-75 on 26th March 1980 fixing the hearing on 28th March 1980. Thus eight penalty proceedings were fixed for hearing on 28th March 1980 allowing the appellant hardly two days' time to represent his case. From the orders passed u/s 18(1) (a) for these years it can be found that the WTO levied penalties amounting altogether to Rs. 62,760. He also imposed substantial penalty for these yeas u/s 18(1) (c). From ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inted out that the cases were again fixed for hearing on 24th May 1980. He submitted that the assessee was given time for about two years and, therefore, it could not be said that reasonable opportunity was not given. He urged that it was within the knowledge of the assessee that he was defaulter for delayed submission of returns and he was quite aware of the fact of initiation of penalty proceedings u/s 18 (1) (a) as early as in March, 1978. He, therefore, claimed that the assessee's plea that he was not given reasonable opportunity was not tenable. The ld. departmental representative contended that the AAC was also wrong in entertaining the additional ground to the effect that reasonable opportunity was not given. 5. The ld. counsel fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er u/s 18 (1) shall be made unless the person concerned has been given a reasonable opportunity of being heard. The Supreme Court in the case of Khem Chand V. Union of India and M. Chakalingam vs. CIT has made it clear that such opportunity must be not a token opportunity but reasonable opportunity. As stated in Stroun's Judicial Dictionary the word "Reasonable" has in law the prima facie meaning of being reasonable in regard to those circumstances of which the actor, called on to Act reasonably, knows or ought to know. 7. In the instant case, the penalty matters were once fixed for hearing on 20th April 1978 when the assessee prayed for an adjournment, and that prayer of the assessee was granted by the WTO. Then, suddenly the penalty ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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