Assessee Failed to Appear before Income Tax Authorities on 8 Occasions: ITAT imposes Cost of Rs. 10,000 [Read Order]

The Income-tax Appellate Tribunal (ITAT), Delhi bench has imposed a cost of Rs. 10,000 on the assessee observing that the latter failed to appear before the first appellate authority on eight occasions.

The assessee, Tathagat Exports Pvt. Ltd, approached the Tribunal against the order of the Commissioner (Appeals) who dismissed the appeal ex-parte.

A bench comprising Dr. B. R. R. Kumar (Accountant Member) and Sh. Anubhav Sharma (Judicial Member) observed that the assessee has failed to appear on 8 occasions before the CIT(A) and has taken up the grounds before the Tribunal pertaining to legal principles of “audi alteram partem” and sustenance of order of the AO by the CIT(A).

Directing a fresh adjudication of the matter, the Tribunal held that “We strongly believe that every assessee has a right to appeal before the authorities against any addition or disallowance made to the returned income, at the same time, it is least expected that the assessee would comply to the notices issued by the authorities in an appropriate way. The assessee having miserably failed to attend before the ld. CIT(A) has taken the grounds of “audi alteram partem” before us. While the grievance of the assessee is not being preempted by us, at the same time, we feel that the conduct of the assessee is clogging the already burdened justice delivery system. Hence , we hereby direct the assessee to pay an amount of Rs.10 ,000/- to the “Prime Minister’s National Relief Fund” and approach the ld. CIT(A) for a fresh hearing denovo which shall be considered. The ld. CIT(A) is hereby directed to af ford an opportunity of being heard to the assessee before conclusion of the proceedings.”

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