INCOME TAX ACT, 1961

Section 250

Appeal [CIT(A)] - AO imposed penalty upon assessee under section 271B - CIT(A) dismissed appeal stating same as defective -

Assessee was a Primary Agricultural Credit Co-operative Society was issued with a notice section 271B for the assessment years 2011-2012 and 2015-2016. Assessee filed appeals and stay applications before CIT(A) and while waiting orders on the stay applications, it was informed as per order communications that the appeals are defective and the defects have to be cured within 15 days. Communications were served on assessee stating that stay applications were rejected in the light of defective appeals and that liberty was granted to file fresh stay applications as and when the defects were cured. Further, proceedings have been issued dismissing appeals stating that defects were not cured. Held: This Court was inclined to take the view that rejection orders would warrant interdiction in these writ proceedings, so that the appeals and stay applications could be decided on merits, after affording reasonable opportunity of being heard to assessee. Accordingly, it was ordered that the appeals filed by assessee and the stay applications would stand remitted to CIT(A) for consideration and decision afresh and on merits. Further, assessee would point out that he had not raised some of the relevant grounds in appellate memorandum and permission might be granted to ensure that additional memorandum of grounds was filed by assessee in pursuance of the appeals filed.

REFERRED :

FAVOUR : Matter remanded

A.Y. : 2011-12 & 2015-16

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