TMI Blog2022 (4) TMI 1228X X X X Extracts X X X X X X X X Extracts X X X X ..... conformity with the appellate order(s) in quantum appeal. We have gone through the orders of the Ld. AO/CIT(A), perused the material on record and heard the Ld. DR. It is observed from the appellate order of the Ld. CIT(A) that he has dismissed the appeal filed by the assessee as not admitted for the reason that the appeal had been filed late and existence of sufficient cause had not been established by the assessee before him. As regards merits the Ld. CIT(A) observed that under Explanation 1(A) to section 271(1)(c), an addition made becomes deemed concealment, if assessee fails to offer an explanation. According to him the Ld. AO had communicated the results of inquiries to the assessee and assessee did not offer any explanation. Therefore, the addition becomes deemed concealment and the Ld. AO was not required to establish anything further. Discussion on merits has been held by the Ld. CIT(A) as academic only. We are conscious that the Ld. CIT(A) has to exercise his discretion under section 249(3) in judicious manner but in the case under consideration the assessee did not submit even an application for condonation of delay. Curiously enough, there is no whisper anywhere i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r any written submission was filed. For the reasons recorded by him in para 5 of his order dated 29.09.2014, the Ld. AO imposed penalty of ₹ 91,37,780/- being 100% of the amount of tax sought to be evaded under section 271(1)(c) of the Act with prior approval of Addl. CIT Range-7, New Delhi. 4. The assessee filed appeal before the Ld. CIT(A) on grounds that imposition of penalty is illegal, unlawful and is against the natural law of justice; that no notice was served upon the assessee, thus any order passed without providing any opportunity to the assessee is not valid in the eye of law; that due to closure/ suspension of business activities the assessee could not pursue the income tax matter; and that the Ld. AO had not established any concealment. 5. The Ld. CIT(A) noticed that the appeal filed by the assessee is late by almost a month and no application for condonation of delay is available on record. According to the Ld. CIT(A), the appeal was first fixed for hearing on 27.07.2015. On that date the assessee requested that the appeal be kept in abeyance till the decision on quantum appeal. The Ld. CIT(A) observed that section 275(1A) takes care of any decision in qua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal filed is dismissed as not admitted. 7. The assessee filed appeal against the order of the Ld. CIT(A) before the Tribunal on the ground that Ld. CIT(A) s order is illegal, unlawful and against the natural law of justice; that no notice has been served upon the assessee, thus Ld. CIT(A) was not justified in passing the order in haste; that sufficient opportunity has not been provided; that disposal of penalty appeal pending disposal of quantum appeal is not justified; and that confirmation of penalty was not justified. 8. Perusal of record shows the following details of the notice of hearing issued to the assessee by the Tribunal :- Date of issue of notice Date of hearing fixed 12.02.2020 31.03.2020 04.02.2021 15.03.2021 09.04.2021 24.05.2021 07.07.2021 09.08.2021 06.09.2021 28.10.2021 22.11.2021 11.01.2022 22.02.2022 04.04.2022 All the notices re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e facts and circumstances of each case. 9.4 There is not statutory bar on passing penalty order pending appeal against an assessment order as remedy in such cases is provided in section 275(1A) which permits revision of the penalty order in conformity with the appellate order(s) in quantum appeal. 10. We have gone through the orders of the Ld. AO/CIT(A), perused the material on record and heard the Ld. DR. It is observed from the appellate order of the Ld. CIT(A) that he has dismissed the appeal filed by the assessee as not admitted for the reason that the appeal had been filed late and existence of sufficient cause had not been established by the assessee before him. As regards merits the Ld. CIT(A) observed that under Explanation 1(A) to section 271(1)(c), an addition made becomes deemed concealment, if assessee fails to offer an explanation. According to him the Ld. AO had communicated the results of inquiries to the assessee and assessee did not offer any explanation. Therefore, the addition becomes deemed concealment and the Ld. AO was not required to establish anything further. Discussion on merits has been held by the Ld. CIT(A) as academic only. 11. The Ld. CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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