The Income Tax Appellate Tribunal (ITAT) Delhi bench has deleted the penalty imposed under Section 271(1)(b) of the Income Tax Act, 1961 due to failure to follow proper procedure to serve notice for assessment proceedings.
Assessee, Gajender Singh Jadon filed the appeal against the penalty order passed without providing proper notice to assessee in the assessment proceedings after the CIT(A) dismissed the Appeal filed by the Assessee.
Before the bench, Gagan Kumar, counsel for the assessee submitted that the assessee has not received the notice of hearing during the assessment proceedings and the AO had not followed the proper procedure to serve the notices.
However, the CIT(A) rejected the additional evidence and decided the case on merits without giving proper opportunity to the assessee which is gross violation of Principle of Natural Justice.
Departmental Representative, Vivek Upadhyay S, appearing for the Revenue supported the penalty order passed by the assessing officer.
During the proceedings, the tribunal observed that the order of penalty came to be passed under Section 271(1)(b) of the Income Tax Act on the ground that the assessee has not complied with the notices issued by the AO under Section 148/142(1) of the Income Tax Act.
Further, the bench observed that AO had not made any effort to find out the proper address of the assessee and nothing is mentioned in the Assessment Order as to whether the address mentioned in the notice was the last known address of the assessee or the registered address of the assessee.
After considering the facts submitted by both parties, the two member bench of N K Billaiya (Accountant Member) and Yogesh Kumar U S (Judicial Member) held that assessing officer failed to follow the proper procedure to serve notice for assessment proceedings.
Therefore, the bench deleted the penalty imposed by the assessing officer.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
