In penalty proceedings assessee have right to contest levy of penalty independently, apart from the findings recorded in the assessment order

Shri A.S. Bindra Vs ACIT (ITAT Delhi)- In the assessment order, it has been mentioned that due to non-availability of evidence, the assessee has offered this amount as his income. That fact cannot go against the assessee in penalty proceedings as the assessee will be having right to contest the levy of penalty independently, apart from the findings recorded in the assessment order. Therefore, the relevant evidence is admitted as additional evidence and the matter is restored back to the file of the AO for re adjudication of the penalty proceedings after due consideration of the evidence being placed by the assessee on record. After giving a reasonable opportunity of hearing to the assessee and placing evidence on record, the AO will re-adjudicate the issue of levy of penalty or otherwise in accordance with law. We direct accordingly.

INCOME TAX APPELLATE TRIBUNAL, DELHI  

ITA No. 3943/DEL/2011

ASST. YEAR: 2005-06

Shri A.S. Bindra

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