SHYAMAL KUMAR NANDY,KOLKATA vs. I.T.O.,WARD-29(1), KOLKATA

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ITA 1478/KOL/2019Status: DisposedITAT Kolkata26 February 2020AY 2007-082 pages
AI SummaryRemanded

What did the Tribunal hold?

The ITAT restored the issue to the CIT(A) for fresh adjudication, citing violation of natural justice. This was subject to the assessee paying a cost of Rs. 5,000/- to the Prime Minister Relief Fund.

What were the facts?

The assessee did not appear before the CIT(A) nor the ITAT, leading to ex-parte proceedings. The CIT(A) had also passed an ex-parte order without adjudicating on merits.

What were the issues?

Whether an ex-parte order can be passed by the CIT(A) without adjudicating on merits, and whether the ITAT can impose costs for non-appearance.

Which sections of the Income-tax Act were involved?

Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘SMC’ BENCH, KOLKATA

Before: Sri J. Sudhakar Reddy, Hon’ble

order : February 26th, 2020 ORDER Per J. Sudhakar Reddy, AM :- This appeal filed by the assessee is directed against the order of the Learned Commissioner of Income Tax (Appeals) – 5, Kolkata, (hereinafter the “ld.CIT(A)”), passed u/s. 250 of the Income Tax Act, 1961 (the ‘Act’), dt. 01/11/2018, for the Assessment Year 2007-08.

2.

None appeared on behalf of the assessee. There is no petition for adjournment either. Under these circumstances, we dispose off the case ex-parte , on merits, qua the assessee after hearing the ld. Departmental Representative.

3.

Heard the ld. D/R. After perusing the order passed by the ld. CIT(A), I find that the assessee has not appeared before the ld. CIT(A) and hence an ex-parte order was passed. The ld. CIT(A) has not disposed off the case on merits. This is not permissible under law. Hence I deem it fit to restore the issue to the file of the ld. CIT(A), for fresh adjudication, in accordance with law, after giving the assessee adequate opportunity of being heard, on the grounds of violation of principles of natural justice, subject to the payment of cost of Rs.5,000/- (Rs. Five Thousand Only) by the assessee in favour of Prime Minister Relief Fund, for having not appeared before the ld. CIT(A) as well as before us in this proceeding. The CIT(A) shall verify the said payment by the assessee and thereafter proceed to dispose off the case afresh, in accordance with law.

4.

For this proposition to levy costs, while condoning the actions of the assessee as reasonable, we rely on the decision of the Hon’ble Bombay High Court in the case of Vijay Vishin Meghani vs. The Deputy Commissioner of Income Tax Circle in of Assessment Year: 2007-08 Shyamal Kumar Nandy 2015 & 508 of 2015, dt. September 19, 2017, 2015 & 508 of 2015, dt. September 19, 2017, wherein at para 11, it has been held as wherein at para 11, it has been held as follows:-

1.

11. We do not find that any of these decided cases have any application to the facts “11. We do not find that any of these decided cases have any application to the facts “11. We do not find that any of these decided cases have any application to the facts before us. We have imposed the costs not because before us. We have imposed the costs not because the appellant was not acting bona fide the appellant was not acting bona fide but finding that even after the legal advice was obtained, the matter was decided in but finding that even after the legal advice was obtained, the matter was decided in but finding that even after the legal advice was obtained, the matter was decided in favour of the assessee, there was time which was consumed and in all this delay of 2984 favour of the assessee, there was time which was consumed and in all this delay of 2984 favour of the assessee, there was time which was consumed and in all this delay of 2984 days occurred. While condoning such delay, days occurred. While condoning such delay, it is permissible for court, in its discretion, to it is permissible for court, in its discretion, to impose costs. Eventually, the rights and equities have to be balanced. To render impose costs. Eventually, the rights and equities have to be balanced. To render impose costs. Eventually, the rights and equities have to be balanced. To render substantial justice and not to enrich the Revenue that the costs have been imposed. It is substantial justice and not to enrich the Revenue that the costs have been imposed. It is substantial justice and not to enrich the Revenue that the costs have been imposed. It is not, therefore, a case where the S not, therefore, a case where the State has been allowed to retain any benefit or has been tate has been allowed to retain any benefit or has been benefited by any directions. It is the Court which in its discretion has imposed this benefited by any directions. It is the Court which in its discretion has imposed this benefited by any directions. It is the Court which in its discretion has imposed this condition. We do not find any basis to alter it. The request in that behalf is refused. condition. We do not find any basis to alter it. The request in that behalf is refused.” condition. We do not find any basis to alter it. The request in that behalf is refused.”

5.

In the result, appeal of the assessee is allowed for statistical purposes as directed result, appeal of the assessee is allowed for statistical purposes as directed result, appeal of the assessee is allowed for statistical purposes as directed above. Kolkata, the Kolkata, the 26th day of February, 2020.

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