Income Tax Authority Did Not Consider The Reply Filed By Assessee; Delhi High Court Sets Aside Penalty Imposed And Directs Fresh Consideration

The Delhi High Court has ruled that a penalty order passed by the income tax authority under Section 271(1)(c) of the Income Tax Act, 1961 without granting a hearing to the assessee is violative of the principles of natural justice. The Bench, consisting of Justices Manmohan and Dinesh Kumar Sharma, quashed the penalty order and remanded the matter back to the income tax authority...