Shreenath Corporation Vs ITO (ITAT Ahmedabad)
In the case of Shreenath Corporation vs. Income Tax Officer (ITO), the Income Tax Appellate Tribunal (ITAT) Ahmedabad addressed an appeal related to the penalty under Section 271(1)(c) of the Income Tax Act, 1961. The appellant, Shreenath Corporation, challenged the order of the Commissioner of Income Tax (Appeals) (CIT(A)) at the National Faceless Appeal Centre (NFAC) in Delhi, which dismissed the appeal as non-maintainable due to a delay of one year and eight months in filing. The CIT(A) had found no sufficient cause for the delay, leading to the dismissal of the appeal.
The ITAT observed that the CIT(A) had failed to provide an opportunity of hearing before rejecting the delay in filing the appeal. The CIT(A) only considered the written submissions from the appellant without granting a hearing. Additionally, the ITAT noted that the appeal regarding the quantum proceedings was still pending before the CIT(A), and the penalty appeal had been decided prematurely.
Considering these points, the ITAT directed the CIT(A) to reconsider the penalty appeal in conjunction with the quantum appeal. It emphasized that the penalty appeal should only be decided after the quantum proceedings are concluded, and proper hearing should be provided for the condonation of the delay.
