Balasaheb Bhagwat Horane Vs ITO (ITAT Pune)
From ‘One-Day Notice’ to ‘Second Chance’ – Penalty rushed in a day, justice restored in a paragraph– ITAT Pune remands 271(1)(b) case
Assessee, an individual from Pandharpur, was levied penalty of ₹30,000 u/s 271(1)(b) for alleged non-compliance with notices u/s 142(1) dated 29.09.2020, 01.02.2021 & 22.02.2021 during assessment. AO held that Assessee failed to respond to these notices & accordingly imposed penalty.
On appeal, the case took an interesting procedural turn. The appeal before NFAC (CIT(A)) was filed electronically in Form-35, wherein the Assessee mentioned his residential address at Chandrabhaga Ghat, Pandharpur. The CIT(A) issued a notice dated 25.06.2025 calling for compliance by 27.06.2025 — effectively giving just one day’s time. The Assessee sought adjournment citing inadequate time but the appeal was nevertheless dismissed for non-compliance.
ITAT observed that the Assessee indeed requested adjournment & was not granted sufficient opportunity. Dismissing the appeal merely for one-day non-response, without granting reasonable time, amounted to denial of natural justice.
Accordingly, the Tribunal set aside the CIT(A)’s order & remanded the matter back for de novo adjudication, directing that proper opportunity of hearing be granted to the Assessee, who shall in turn file necessary documents.
FULL TEXT OF THE ORDER OF ITAT PUNE
