By TIOL News Service

NEW DELHI, JULY 23, 2018: THE ISSUE IS - Whether consolidation of appeals being heard expeditiously by the different benches of the Tribunal and also without giving a notice to the assessee, is a vitiated decision. YES IS THE VERDICT.

Facts of the case:

The assessee company had preferred the present petition challenging the order passed by ITAT consolidating thirteen appeals pending before different Benches on the request of the CIT, in a cryptic and unreasoned manner. The counsel for assessee submitted that even though those applications did not disclose any reason as to why consolidation of all appeals which were pending for a long time and were adjourned at the behest of Department itself by various benches, should be consolidated and listed before one Bench.

High Court held that,

++ the record nowhere discloses nor does the Revenue dispute that the ITAT did give any notice to the assessee before issuing the consolidation order. Apparently all the appeals preferred by the assessee were being listed and heard repeatedly by different Benches. However, as per the assessee, they were adjourned for purposes of consolidation. Therefore, the Tribunal ought to have at least followed the proper procedure as laid down by this Court in case of Dr. Prannoy Roy vs. The Deputy Commissioner of Income Tax & Ors - 2018-TIOL-830-HC-DEL-IT;

++ in the circumstances of the present case, the Tribunal should have given adequate notice to the assessee on the issue of consolidation and secondly, if the Revenue's request is found feasible and reasonable, indicate brief reason as to why the consolidation was essential. The failure of the ITAT to confirm to salient features vitiates its order. Hence, the order for consolidating all appeals are hereby quashed. The ITAT should issue notice to the Assessee before agreeing on the application and after considering the submission of both the parties, pass a reasoned order.

(See 2018-TIOL-1422-HC-DEL-IT)