No Proper Reason for Non-Appearance before Income Tax Authorities: ITAT imposes Cost of Rs. 10,000 on Assessee [Read Order]

The Income Tax Appellate Tribunal (ITAT), Bangalore bench has imposed a cost of Rs. 10,000 on the assessee for not giving proper reasons for the non-appearance before the income tax authorities.

Income tax proceedings were initiated against the assessee, Ms. Amritha Raj. The assessee approached the Tribunal contending that the CIT(A) has passed the impugned order ex-parte, without hearing the assessee, since the assessee did not appear before him despite of giving several opportunities.

It was contended on behalf of the assessee that she was under the bona fide belief that the undisclosed income shall be assessed in the hands of the assessee’s husband.

Shri B.R. Baskaran, Accountant Member observed that “However, this explanation does not support the case of non-appearance. At the same time, the natural justice would call for giving opportunity of hearing to the assessee. Accordingly in my view the assessee may be provided with one more opportunity to present her case properly before the CIT(A). However, since the assessee has not afforded proper reasons for not appearing before the tax authorities, I am of the view that the assessee shall be imposed cost. Accordingly I impose a cost of Rs.10,000/- (Rs.5.000/- for each AY), which shall be paid to the credit of the Income Tax Department within one month from the date of receipt of this order by the assessee as other fees. Subject to the payment of the above said cost, I set aside the orders passed by the learned CIT(A) in both the assessment years under consideration and restore all the issues to his file for examining them afresh after affording adequate opportunity of being heard to the assessee. I also direct the assessee to appear before the learned CIT(A) without fail for expeditious disposal of the appeals.”

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