Shree Hanuman Pulses Pvt. Ltd. Vs ITO (ITAT Raipur)
Penalty u/s 271B Dispute Reopened – Appeal Restored for Fresh Adjudication- CIT(A) Cannot Summarily Dismiss Appeal; ITAT Raipur restored the appeal to CIT(A) after finding that it was dismissed ex parte in violation of natural justice.
Assessee had filed appeal against penalty order passed u/s 271B. CIT(A) issued several notices between June 2020 & May 2025, but no response was received from Assessee, leading to ex parte dismissal on 27.05.2025.
Before Tribunal, Assessee was unrepresented, though an adjournment application was filed. Tribunal observed that once an appeal is filed, CIT(A) is duty-bound u/s 250(6) & 251 to dispose it on merits by passing a reasoned order, & cannot summarily dismiss for non-prosecution. It relied on Bombay HC in CIT Vs. Premkumar Arjundas Luthra (HUF) (297 CTR 614), which held that CIT(A)’s powers are co-terminus with those of AO & dismissal without adjudication is impermissible. Tribunal emphasised that natural justice requires giving Assessee one final opportunity to present its case.
Accordingly, Tribunal set aside the order of CIT(A)/NFAC & remanded matter for de novo adjudication on merits, cautioning Assessee to cooperate with notices as this was the final opportunity. The appeal was allowed for statistical purposes.
