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2019 (4) TMI 1979 - AT - Income TaxPenalty u/s 221(1) - AO found that assessee has not remitted the tax outstanding - AR submitted that AO was not explained about the break-up of the dues, can the penalty be levied on total outstanding without restricting it to only tax dues - As argued no proper/reasonable opportunity to assessee - HELD THAT:- AO issued several notices, but, assessee has not availed the opportunity to explain the sufficient reasons for such pending taxes. AO levied penalty u/s 221(1) of the Act. Even before the CIT(A), assessee failed to make submission, even though, CIT(A) has given several opportunities. Penalty cannot be levied without giving proper/reasonable opportunity to assessee. In this regard, assessee never made any representation before any authority, even though, tax authorities were considerate and given several opportunities to the assessee. Since, this issue is relating to penalty, we deem it fit to give one more opportunity to assessee. Therefore, we direct the AO to give a reasonable opportunity of being heard to the assessee and the assessee also directed to submit relevant information before the AO regarding the sufficient reasons as to why penalty u/s 221(1) cannot be levied. AO is directed to complete the proceedings as per law. - Decided in favour of assessee for statistical purposes.
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