Non-compliance inspite of repeated notices led to gross negligence hence cost of Rs. 2,000/- imposed

Ahmed Ali Khan Vs ITO (ITAT Jaipur)

ITAT Jaipur held that non-compliance inspite of repeated notices/ summons has led to gross negligence on the part of the assessee and accordingly matter restored back and cost of Rs. 2,000/- imposed for negligent attitude during income tax proceedings.

Facts- The present appeal is preferred by the assessee alleging that CIT(A) has erred in sustaining the addition made by AO on account of Long Term Capital Gain by adopting the valuation done by the DVO as sale consideration of the agricultural land sold by ssessee on one side and also reducing the cost of acquisition claimed by the appellant resulting into an addition of Rs. 17, 19,182/-.

Further, assessee has raised the additional ground regarding application of section 50C of the Income Tax Act, 1961 which was wrongly applied by AO and confirmed by CIT(A).

Conclusion- Held that CIT(A) has confirmed the order of the AO in absence of any submissions from the side of the assessee and also non appearance of the assessee before the ld. CIT (A). From the entire sequence of events and the conduct of the assessee in non compliance of the repeated notices, it appears gross negligence on the part of the assessee and wastage of precious time. In our considered view, non compliance of notice issued by the Authorities and non appearance before the Authorities inspite of repeated notices/summons is dis-regard towards the Authorities. Be that as it may, without going into merits, considering the interest of natural justice, one more opportunity is granted to the assessee, and the file is restored back to the ld. CIT (A) for consideration afresh, subject to cost of Rs. 2,000/- for negligent attitude during income tax proceedings, to be deposited in the Prime Minister’s Care Fund and proof thereof should be produced.

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