What did the Tribunal hold?

The Tribunal held that the CIT(A) has jurisdiction coterminous with the Assessing Officer and is empowered to enhance assessment. Therefore, the CIT(A) was obligated to call for records and re-appreciate the material before deciding the appeal.

The assessee claimed expenses for freebies given to doctors for promoting pharmaceutical products. The CIT(A) dismissed the appeal without examining the records, stating he had no documents beyond the assessment order.

What were the issues?

Whether the CIT(A) properly disposed of the appeal on merits by re-examining the records and materials available.

Triton Health Care Private Limited vs ITO | ITAT Chennai 2019

Income Tax Appellate Tribunal, ‘A/SMC’ BENCH : CHENNAI

Before: SHRI N.R.S. GANESAN

For Respondent: Shri A.R.V. Sreenivasan, JCIT

आदेश / O R D E R

PER N.R.S.GANESAN, JUDICIAL MEMBER

This appeal of the assessee is directed against the order of the Commissioner of Income-tax Chennai-7, Chennai (hereafter called as ‘CIT(A)’), dated 30.11.2018 and pertains to assessment year 2014-15.

None appeared for the assessee despite service of notice beyond the period. The Registry has placed on record postal acknowledgement

ITA No.281/Chny2019 :- 2 -: as a proof of service of notice to the assessee. Therefore, I heard the Ld. Departmental Representative and proceeded to dispose of the appeal on merit. After hearing of ld. Departmental Representative, this Tribunal finds that the ld. CIT(A) has not disposed the appeal on merit.

The freebies has given to the Doctors for promotion of pharmaceutical and allied products was claimed as expenditure, while computing the total income. The ld. CIT(A) dismissed the appeal on the ground that he has no records other than the assessment order, statements of facts and grounds of appeal. Under the scheme of the Income Tax Act, the ld. CIT(A) has jurisdiction coterminous as that of the Assessing Officer (AO). The ld. CIT(A) was also empowered to enhance the assessment.

Therefore, it is obligatory on the part of the ld. CIT(A) to call for the records of the AO and re-appreciate the material available on record and thereafter, decide the appeal by a speaking order. In this case, the ld. CIT(A) has not choose to call for the record and re-appreciate the material available on record. Therefore, the matter needs to be re- examination of ld. CIT(A). Accordingly, the order of the ld. CIT(A) is set aside the entire issue is remitted back to the file of the ld. CIT(A).

The ld. CIT(A) shall re-examine the matter after calling for the records of the Assessing Officer and decide the issue on merits by a speaking order after giving reasonable opportunity to the assessee.

ITA No.281/Chny2019 :- 3 -:

With the above observation, the appeal of the assessee is allowed for statistical purposes.

Order pronounced on the day of 03rd September, 2019, in Chennai.

TRITON HEALTH CARE PRIVATE LIMITED,CHENNAI vs. ITO CORPORATE WARD 3(2), CHENNAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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