Marut Paper Products Pvt. Ltd. Vs ACIT (ITAT Lucknow)
Penalty u/s 271(1)(c) Cannot Be Confirmed by Non-Speaking Order—Matter Remanded
In Marut Paper Products Pvt. Ltd. v. ACIT, Central Circle-1, Kanpur (ITA No. 393/LKW/2023; AY 2016-17), the ITAT Lucknow Bench examined the validity of an appellate order whereby the CIT(A) confirmed a penalty of ₹47,21,400 under Section 271(1)(c).
The assessee contended that the CIT(A) dismissed the appeal in limine for want of prosecution, without examining the merits of the penalty or passing a reasoned order. The Revenue left the matter to the discretion of the Tribunal.
The Tribunal held that:
- The CIT(A)’s order was non-speaking and summary in nature, and
- Such dismissal violates Section 250(6), which mandates a speaking order dealing with merits of each ground in appellate proceedings, especially in penalty matters.
Decision & Directions:
- Impugned order of the CIT(A) set aside.
- Issue of penalty under Section 271(1)(c) restored to CIT(A) for de novo adjudication.
- CIT(A) directed to pass a reasoned, speaking order on merits after granting reasonable opportunity of hearing to the assessee.
FULL TEXT OF THE ORDER OF ITAT LUCKNOW
This appeal vide I.T.A. No.393/Lkw/2023 has been filed by the assessee for Assessment Year 2016-17 against impugned appellate order dated 03/10/2023 (Appeal No. CIT(A)-IV/KNP/10788/2015-16 of Commissioner of Income Tax (Appeals) [“CIT(A)” for short].
