No Penalty u/s 271(1)(c) can be Imposed, Without Assistance of Assessee in Prosecuting the Levy of Penalty Proceedings: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT), Pune Bench, has recently, in an appeal filed before it, held that no penalty under Section 271(1)(c) can be imposed, without the assistance of the assessee in prosecuting the levy of penalty proceedings.

The aforesaid observation was made by the Pune ITAT, when an appeal was preferred before it by the assessee, as against the order dated 31-01-2023, passed by the National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] for assessment year 2011-12.

With Shri Ramnath P Murkunde , having appeared on behalf of the Revenue, while no representation was made on the assessee’s behalf, the Pune ITAT observed:

“Since the Assessing Officer imposed penalty under Section 271(1)(c) of the Income Tax Act, 1961, on the charge of concealment of income, in our opinion, it requires assistance of the assessee in prosecuting the levy of penalty proceedings before NFAC.”

Finally, the ITAT Coram of R.S. Syal, the Vice -President, and S.S. Viswanethra Ravi, the Judicial Member thus held and concluded:

“As there is no opportunity for the assessee which is established from the impugned order, we deem it appropriate to remand the matter to the file of NFAC, Delhi for its fresh consideration. The assessee is at liberty to file evidences, if any, in support of his contentions. Thus, grounds of appeal raised by the assessee are allowed for statistical purposes.”

To Read the full text of the Order CLICK HERE

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