Assessee’s Delinquency and Lethargy in Pursuing Matter Before the Tax Authorities Attracts Cost: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has recently, in an appeal filed before it, held that the assessee’s delinquency and lethargy in pursuing the matter before the tax authorities would attract cost.

The aforesaid observation was made by the Mumbai ITAT, when an appeal was preferred before it by the assessee as against the order passed by the Commissioner of Income Tax (Appeals), (NFAC), Delhi (CIT(A)), relating to the Assessment Year 2016-17, wherein the assessee was aggrieved by the decision of the CIT(A) in confirming the order of Assessing Officer, in estimating the income of assessee from share trading transaction at Rs.93.59 lacs.

With a chartered Accountant having appeared on behalf of the assessee , seeking adjournment on the ground that the assessee had moved an RTI application before the Assessing Officer seeking certain information, the Bench disregarded his presence as he did not possess a letter of authority and also failed to appear in the prescribed dress.

On the other hand, the Bench heard and perused the record as was submitted by Shri Manoj Kumar Sinha, the DR, on behalf of the Revenue, who submitted that the assessee had not appeared before the Assessing Officer as well as the CIT(A) and hence that both the tax authorities have passed the respective orders ex parte.

Hearing the submissions of the DR, and thereby perusing the materials available on record, the Tribunal observed, “Since the assessee has not appeared before any of the tax authorities below, in the interest of justice, we are of the view that the assessee may be provided with an opportunity to present his case properly before the CIT(A)”.

Finally, the coram of Narender Kumar Choudhry, the Judicial Member and B.R Baskaran, the Accountant Member thus held:

“Since the assessee was delinquent and lethargic in pursuing his matter before the tax authorities, we impose a cost of Rs. 2000/- upon the assessee, which shall be paid to the credit of the Income Tax Department as ‘Other fees’ within two months from the date of receipt of this order.”

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates