The Agra bench of the Income Tax Appellate Tribunal (ITAT) has ordered a fresh adjudication in a case involving income concealment allegations due to natural justice violation.
The assessee had filed his income tax returns for the assessment year 2015-16 by declaring a total income of Rs. 2.94 lakhs. The assessing officer (AO) passed the assessment order under section 144 of the Income Tax Act, 1961, making a total addition of Rs. 2.61 lakhs.
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The AO also invoked penalty proceedings u/s 271(1)(c) for concealment of income, and a penalty of Rs. 34,803 was imposed.
Although the assessee appealed to the Commissioner of Income Tax Appeals [CIT(A)], there was no positive decision.
The assessee’s counsel submitted that the quantum additions were set aside by ITAT for fresh adjudication, but the CIT(A) dismissed the penalty appeal without considering ITAT’s order dated 20.09.2021
The Tribunal was of the opinion that the principles of natural justice were violated. The bench noted that the AO had failed to provide the assessee with access to crucial documents or a reasonable opportunity to respond.
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The ITAT further observed that “I have also observed that the ld. CIT(Appeals) has dismissed the appeal of the assessee without considering the aforesaid Tribunal decision dated 20.09.2021, and it will be fair and appropriate that this appeal, which has arisen against penalty levied by the AO u/s 271(1)(c) of Rs. 34,803/-, can also be restored back to the file of ld. CIT (Appeals) to decide afresh after giving sufficient opportunity to both parties.”
The single bench member of the ITAT, comprising Ramit Kochar (Accountant Member), allowed the appeal filed by the assessee for statistical purposes and restored the matter back to CIT(A) for adjudication.
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