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PETITIONER: M/s. GUDUTHUR BROS.
Vs.
RESPONDENT: THE INCOME-TAX OFFICER, SPECIAL CIRCLE, BANGALORE.
DATE OF JUDGMENT: 22/07/1960
BENCH: HIDAYATULLAH, M. BENCH: HIDAYATULLAH, M. DAS, S.K. SHAH, J.C.
CITATION: 1960 AIR 1326
ACT: Income-tax--Assessment--Penalty--Imposition by Income-tax Officer without reasonable opportunity given to assessee of being heard--Order set aside on appeal and refund directed--No express order of remand--Continuance of Proceedings by the Income-tax Officer--Legality--Indian Income-tax Act, 1922 (II of 1922), SS. 28 (I)(a) and 28(3).
HEADNOTE: The appellants failed to file their return within the prescribed time and on a notice issued under S. 28(1)(a) of the Indian Income-tax Act, 1922, to show cause why penalty should not be imposed on them, they filed a written reply. Without affording them an opportunity of being heard as required by S. 28(3) of the Act the Income-tax Officer imposed a penalty on them. On appeal the Appellate Assistant Commissioner set aside the order and directed refund of the penalty. Thereafter the Income-tax Officer issued a further notice giving an opportunity to the appel- lants of being heard. The appellants objected to this notice and 72 contended that the Income-tax Officer could no longer proceed to re-assess the penalty in the absence of an express order ...