I-T - Simply because Tribunal has not imposed restriction on taxpayer while granting opportunity to join proceedings, it does not amount to substantial question warranting writ interference: HC
By TIOL News Service
AHEMDABAD, NOV 12, 2018: THE ISSUE BEFORE THE DIVISION BENCH IS - Whether callous approach of ITAT in not imposing any fair cost on assessee while granting him an additional opportunity to participate in the proceedings, is sufficient enough to seek writ interference. NO IS THE VERDICT.
Facts of the case:
The Revenue Department preferred present appeal challenging the action of ITAT in setting aside the order passed by CIT(A) with the direction to adjudicate de novo without appreciating the fact that due to total non-compliance on the part of assessee and despite providing sufficient opportunities, the CIT(A) did not have any material to further dwelt upon the issue and had no choice but to frame an order based on the findings, given in the order passed by AO.
High Court held that,
++ it is seen that a similar issue came up for consideration before this Court in Tax Appeal No. 1192 of 2018, wherein it was observed that: "....Tribunal remanded the proceedings for consideration of CIT(A) on the ground that the appeal order was exparte. The counsel for Revenue is justified in making a grievance that the Tribunal did not put some check or restriction on the assessee so that sense of seriousness is brought about in the proceedings. In prima facie view, even if the Tribunal was inclined to grant opportunity to participate in the proceedings, at least imposition of fair amount of cost could have been considered. This would bring in a level of seriousness required on the part of assessee while facing assessment proceedings. However, only for such purpose, this Court is not inclined to entertain this appeal, since otherwise there is no question of law arising...." In the result, the present appeal is also dismissed.
(See 2018-TIOL-2376-HC-AHM-IT)
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