Appeal under sec.271(1)(c)

you can move CIT(A) against the AO order  with your contentions, after all all administrative law has tp give credence to Natural justice, of 'Audi Alteram Partem...' (need to hear the affected party' if not heard it is a violation of Art 14 of constitution of india. if CIT(A)  and ITAT fail or you can directly move under Art 226 before high court by a civil or original writ for not hearding your contentions before penalty is imposed..regards. adv.dr g balakrishnan high court/counsel SC.