TPO passed order making certain upward adjustment to assessee’s income and also recommended for levy of penalty under section 271AA. Thereafter, an order was passed imposing penalty under section 271AA(1). On writ the Court held that as per Faceless Penalty Scheme, 2021, as amended by Faceless Penalty (Amendment) Scheme, 2022, (2021) 430 ITR 2 (St), (2022) 444 ITR 101 (St), it is necessary that the person who hears assessee only is required to pass the order, being part of such penalty or assessment unit as the case may be. It was noted that hearing was granted by the previous incumbent Assessing Officer and the penalty order was passed by another officer who had not heard assessee during video conferencing; this resulted in a breach of the basic principle of natural justice. The matter was remanded back to provide a fresh opportunity of hearing to assessee and thereafter pass a fresh order under the provisions of section 271AA(1) by the same officer who had heard the assessee through video conference.\u00a0 Court also directed the Central Board of Direct Taxes to issue necessary instructions to all Assessment and Penalty Units. (AY. 2018-19)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 271AA: Penalty-Failure to keep and maintain books of accounts-Documents-International transaction-Transfer pricing-Principle of natural justice-Assessing Officer who heard in video conferencing to pass assessment or penalty order-Structures-Directions issued to Central Board of Direct Taxes to issue necessary instructions to all Assessment and Penalty Units-Matter remanded to Assessment or Penalty Unit to afford fresh opportunity of hearing and thereafter pass fresh order by same Assessing Officer hearing assessee.[S.92D, 144B(3) 274(1), Art. 226] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-65485","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-h2d","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65485","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=65485"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65485\/revisions"}],"predecessor-version":[{"id":65486,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65485\/revisions\/65486"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=65485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=65485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=65485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}