INCOME TAX ACT, 1961

Section 271(1)(b)

Penalty under section 271(1)(b) - Non compliance of notice issued under section 142(1) - Remand of matter -

A search and seizure operation under section 132 was carried at the business premises of assessee. During the course of assessment proceedings, AO issued notice under section 142(1) along with the questionnaire for the respective assessment year. However, there was no response from the side of the assessee to the notice issued under section 142(1) for which AO initiated penalty proceedings under section 271(1)(b) and, thereafter, levied penalty under section 271(1)(b). Since there was non-appearance from the side of assessee, CIT(A) in his ex parte order confirmed the penalty. Held: It was the submission of assessee that given an opportunity assessee was in a position to substantiate its case before CIT(A) regarding the non-compliance. Considering the fact that CIT(A) had issued only one notice of hearing to the assessee and, thereafter, passed the ex parte order, therefore, in the interest of justice, it would be proper to restore the issue to CIT(A) with a direction to grant one final opportunity to assessee to substantiate its case and assessee was also directed to appear before CIT(A).

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2013-14 to 2017-18

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