The Income Tax Appellate Tribunal [ITAT], Chandigarh bench, has held that the appellate authority cannot dismiss an appeal by pointing out the defects in its form without granting an opportunity to the assessee to cure the defects.
The bench comprising judicial member Ms. Diva Singh and Accountant member, Ms. Annapurna Gupta held so while hearing both parties contentions.
This appeal filed by the assessee has been preferred against the order passed by the Ld. Commissioner of Income Tax (Appeals), relating to assessment year 2012-13.
Dissatisfied by the order, the assessee approached the Commissioner of Income Tax (CIT). however, the first appellate authority dismissed the appeal by stating that it was defective since the appeal has not been filed in the prescribed format according to the Rule 45 of the Income Tax Rules. It said that the verification in the appeal memo was signed by unauthorized person.
During the appellate proceeding the assesse contended that the CIT noted on the memorandum of appeal verification form did not mention any name and further it was signed by Executive Engineer of the assessee company.
According to the said rule, it was to be signed and verified by a person who is authorized to sign the return of income under Section 140 of the Income Tax Act, which in the case of a company is the Managing Director and in the absence of Managing Director by any Director authorized to verify the return. In return through show cause notice assesse had submitted the reason that the name of the signing person had not been mentioned due to typographical error or omission.During the year signed person was the General Manager of the assessee company was authorized by the Managing Director of the assesse company.
By hearing both the parties’ arguments the bench observed that the appeal of the assesse found favour.
The bench noted that the appeal was dismissed without giving any further opportunity to the assessee to file evidence.
With agreement to the assesse that adequate opportunity to address the defect in the appeal form filed by the assessee was not given to the assessee nor was adequate opportunity given to explain the reason for the defect. Finally the dismissed appeal of assesse by the CIT was allowed.
Read the full text of the Order below.
