2023 (5) TMI 998 - AT - Income Tax

Penalty u/s 271(1)(c) - assessee has settled the dispute related to the one addition in VSVS - As the order of the ld. CIT(A) considered that the whole issue of levy of penalty is covered by VSVS scheme is not correct as argued by assessee - HELD THAT:- Considering the peculiar circumstances and facts as it emerges from the order of the lower authority that if the revenue peruse for the penalty demand of the assessee which is not covered under VSVS scheme then in that case the revenue before proceeding against the assessee CIT(A) should hear the case of the assessee on merits of dispute which is not settled in the VSVS scheme to that extent the order of the ld. CIT(A) is amended and restored to the file of the ld. CIT(A) for deciding the contentions of the assessee raised in the appeal afresh on merits after giving an opportunity of being heard to the assessee. The assessee is also directed to co-operate with the ld. CIT(A) in deciding the appeal on merits and without sufficient reason, not to take further adjournments - Appeal of the assessee is allowed for statistical purpose.