The Mumbai bench of the Income Tax Appellate Tribunal ( ITAT ) has ordered Jet Airways, amidst pending insolvency proceedings before the National Company Law Tribunal ( NCLT ), to pay costs amounting to Rs 25,000 to the Prime Minister’s Relief Fund.
The final assessment orders, all dated 04.07.2022, issued by the Deputy Commissioner of Income Tax, under sections 144 read with 147, 92CA, and 144C(13) of the Income Tax Act, 1961 ( referred to as ‘the Act’ ) for the assessment years 2012-13, 2013-14, 2014-15, and 2015-16. The issues raised in all these appeals are identical. Consequently, these appeals were collectively heard and resolved through this consolidated order.
The counsel for the assessee Anuj Kisnadwala argued that the assessee is currently undergoing the insolvency process before the National Company Law Tribunal ( NCLT ), which has hindered the filing of any details or documentary evidence related to the various additions made by the Assessing Officer ( AO ). The counsel thus requested an additional opportunity for the assessee to submit the required details before the AO.
The counsel pointed out that a similar situation had been addressed by a Co-ordinate Bench in the assessee’s own case for the assessment years 2017-18 and 2016-17. In that instance, the Tribunal had remanded the issue back to the AO, providing one last chance for the assessee to present its case. The counsel sought a similar direction for the years under consideration.
The counsel for revenue strongly objected to the idea of sending the matter back to the Assessing Officer ( AO ), arguing that the assessee had been provided with sufficient opportunities before the lower authorities to present their case
The counsel for the revenue Vachashpati Tripathi emphasized that despite numerous notices issued, the assessee failed to comply or respond adequately. As such, the counsel urged that the final order of the AO should be upheld.
The two member bench of the tribunal comprising Vikas Aswathy ( Judicial member ) and Pathmavathy ( Accountant member ) remitted the issue back to the AO for a denovo consideration of the various issues.
Furthermore, the bench also levied a cost of Rs. 25,000/- in each of the appeals since considerable time and efforts had been spent by the Exchequer and for the reason that the assessee had been delinquent before the lower authorities.
The bench observed that the assessee was directed to pay the said amount to the Prime Minister Relief Fund within 30 days from the date of that order. The assessee was also directed to appear before the AO without seeking any adjournments, file the necessary details as may have been called for, and cooperate with the assessment proceedings. It was ordered accordingly.
In the result, the appeals for AY 2012-13 to AY 2015-16 are allowed for statistical purposes.
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