AAI ACCELERATE ASSAM INITIATIVE,GUWAHATI V. ITO, W-1(1), GUWAHATI

ITA 38/GTY/2024

AI Insights

The case involves AAI Accelerate Assam Initiative, the appellant, contesting a penalty of \\u20b949,08,144 levied under section 270A of the Income Tax Act, 1961, for the assessment year 2020-21. The penalty was initially imposed following a best judgment assessment under section 144 read with section 144B of the Act, due to non-appearance of the assessee and subsequent disallowance of a deduction claimed under section 57. The assessee failed to appear before both the Assessing Officer and the Commissioner of Income Tax (Appeals), leading to an ex-parte penalty order. The Tribunal, considering the circumstances and in the interest of justice, restored the matter to the Assessing Officer, emphasizing the need for a fair hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472597 (ITAT-GUWAHATI)
• Duration Of Justice: 7 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 26-08-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 22-02-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SOMENDU SEKHAR DAS
• Assessee Lawyers: S.P. BHATI; ISSUE OF NOTICE US READ
• Keywords: Opportunity of being heard; Reasonable cause
• Section: 144; 250; 274

Judgement Text

" आयकर अपीलीय अधिकरण न्यायपीठ, गुवाहाटी । IN THE INCOME TAX APPELLATE TRIBUNAL GUWAHATI BENCH, GUWAHATI BEFORE DR. MANISH BORAD, ACCOUNTANT MEMBER & SHRI MANOMOHAN DAS, JUDICIAL MEMBER I.T.A. No. 38/GTY/2024 Assessment Year: 2020-21 AAI Accelerate Assam Initiative, Guwahati H.No.7, Borhosai, Bikash Nagar, Basistha, Guwahati-781029 PAN: AACAA8824D Vs ITO, W-1(1), Guwahati Aaykar Bhavan , Christian Basti, G.S. Road, Guwahati-781005 Assam अपीलार्थी/ (Appellant) प्रत् यर्थी/ (Respondent) Assessee by : Shri S.P. Bhati, FCA Revenue by : Shri Somendu Sekhar Das, JCIT सुनवाई की तारीख/Date of Hearing : 26.08.2024 घोषणा की तारीख /Date of Pronouncement : 17.10.2024 आदेश/O R D E R PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal filed by the assessee, pertaining to assessment year 2020-21is directed against the order passed by the National Faceless Appeal Centre, Delhi (hereinafter referred to as the ‘ld. CIT(A)’) dated 19th December, 2023 passed u/s 250 of the Income Tax Act, 1961 (‘Act’), which is arising out of the assessment order passed u/s 270A of the Act vide order dated 17th March, 2023. 2. The sole grievance of the assessee is against the levy of penalty of ₹49,08,144/- u/s 270A of the Act. 3. At the outset, the ld. counsel for the assessee submitted that the assessee failed to avail the opportunity granted by both the lower authorities. As a result, the penalty order as well as the Page | 2 ITA No. 38/GTY/2024 AAI Accelerate Assam Initiative; A.Y. 2020-21 impugned order has been framed ex-parte. He further submitted that in the interest of justice one opportunity may be granted so that assessee can present his case on merits. 4. On the other hand, the ld. DR though supported the order of the ld. lower authorities did not raise any objection if the matter is restored to the lower authorities. 5. We have heard the rival contentions and perused the orders placed before us. The penalty proceedings u/s 271A of the Act were initiated against the assessee by issue of notice u/s 274 read with Section 270A of the Act on 12th September, 2022. The assessee failed to appear during the course of assessment proceedings. Best judgment assessment was completed u/s 144 read with section 144B of the Act, wherein deduction claimed u/s 57 of the Act, was disallowed. The ld. AO further proceeded to initiate the penalty proceedings u/s 270A of the Act for the disallowance of deduction u/s 57 of the Act at ₹2,57,94,972/-. 6. We note that assessee failed to appear before the ld. AO which resulted in levy of the impugned penalty and even in the appeal before the ld. CIT (A), assessee did not appear. Though, the series of events clearly indicates that assessee is a habitual offender but considering the prayer of ld. Counsel for the assessee and also in the interest of justice and being fair to both the parties, we deem it appropriate to afford one more opportunity to the assessee and restore the issue of levy of penalty u/s 271A of the Act to the file of the ld. AO for denovo adjudication. Needless, to mention that proper opportunity of being heard to be provided to the assessee and that the assessee should not seek any adjournments unless otherwise required for reasonable cause. Grounds of appeal raised by assessee are allowed for statistical purposes. Page | 3 ITA No. 38/GTY/2024 AAI Accelerate Assam Initiative; A.Y. 2020-21 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 17th October, 2024 at Kolkata. Sd/- Sd/- (MANOMOHAN DAS) (DR. MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER Kolkata, Dated 17.10.2024 *SS, Sr.Ps आदेश की प्रतततिति अग्रेतषत/Copy of the Order forwarded to : 1. अिीिार्थी / The Appellant 2. प्रत्यर्थी / The Respondent 3. संबंतित आयकर आयुक्त / Concerned Pr. CIT 4. आयकर आयुक्त ( अिीि ) / The CIT(A)- 5. तवभागीय प्रतततनति , अतिकरण अिीिीय आयकर , कोिकाता/DR,ITAT, Kolkata, 6. गार्ड फाईि / Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अिीिीय अतिकरण ITAT, Kolkata "