MR. KIRAN GAJANAN PADIYAR vs. COMMISSIONER OF INCOME TAX AND ANR.,

TXA/60/2014HC BombayHCBM05001132201420 January 2015Author: HON'BLE SHRI JUSTICE K. L. WADANE,F. M. REIS4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court held that the ITAT's order was vitiated for failure to provide an adequate hearing. The Court noted that the Revenue did not dispute the Assessee's contention that the Tribunal did not provide an opportunity of hearing based on the additional documents produced. In the interest of justice, the Court quashed and set aside the order passed by the ITAT. The ITAT was directed to decide the appeal afresh after giving both the appellant (Assessee) and respondents (Revenue) an opportunity of being heard with regard to the additional documents. The substantial question of law was answered accordingly. All contentions of the parties on merits were left open.

What were the facts?

The appeals before the High Court of Bombay at Goa concerned orders passed by the Income Tax Appellate Tribunal (ITAT). The ITAT had heard arguments on 1/08/2013 in an appeal preferred by the Revenue. The Assessee (appellants in these appeals) was directed to produce additional documents on 2/08/2013, which were related to agreements relied upon by the Revenue. Subsequently, the ITAT disposed of the Revenue's appeal in favour of the Revenue by an order dated 23/08/2013. The Assessee contended that the ITAT's order was vitiated due to a failure to provide an adequate hearing after the production of these additional documents.

What were the issues?

1. Whether the order passed by the Income Tax Appellate Tribunal stands vitiated for failure to give adequate hearing after calling for additional evidence to be produced before such Tribunal. The Assessee argued that the ITAT's order was vitiated because no reasons were recorded by the Tribunal while examining the additional documents produced, and consequently, the order itself stands vitiated, relying on Rule 29 of the Appellate Tribunal Rules of 1963. The Revenue did not dispute the fact that the Tribunal did not give an opportunity of hearing based on such additional documents.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, stands

(i) The impugned order dated 23/08/2013 passed by the Income Tax Appellate Tribunal is quashed and set aside. (ii) Income Tax Appeal is restored to the file of the Tribunal. (iii) The Tribunal is directed to decide the appeal preferred by the respondents afresh in the light of the observations herein above after hearing the parties in accordance with law. (iv) All the contentions of the parties on merits are left open. (v) Records and proceedings be sent back to the respective Authorities. (v) Both the appeals stand disposed of accordingly. K.L. WADANE, J. F.M. REIS, J. NH/-

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