CIT(A) order non-granting of TDS & Foreign Taxes paid Credit in the absence of Assessee: ITAT restored to Fresh Adjudication [Read Order]

CIT(A) non-granting of TDS & Foreign Taxes paid credit on non-appearance of the assessee, the Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) restored the issue to the file of AO for fresh adjudication.

Antonio Whitney, the assessee challenged the order of the CIT(A)-46 Mumbaipassed u/s 144 and 250 of the Act which erred in Non granting of TDS credit &Foreign Tax Paid credit.

The assessee is a foreign national and employee of Thomson Reuters Hong Kong and was on assignment to India from the year 2009 to 2014. The assessee derives income from salary, income from House Property, Capital Gains and other sources.The assessee has filed the return of income for A.Y.2014-15 disclosing a total income of Rs.2,83,98,915/. The assessment was completed U/sec144 of the Act on 27-12-2016 determining the total income of Rs.2,83,98,920/- and credit for Foreign Tax paidwasnot granted. The CIT(A) considering the record information has confirmed the action of the A.O and dismissed the appeal.

Mr K.K.Vaid,& Mr A.K.Jawadwala, counsel for the appellant argued that the assessee has a good case on merits and shall substantiate with the material evidence and prayed for an opportunity to explain before the lower authorities. Contra, Mr.Manoj Sinha, the counsel for the department supported the order of the CIT(A).

It was found that there was no response on notice issued by CIT(A) for a hearing and thus CIT(A) came to the conclusion that the assessee is not interested and decided on the appeal based on the information available on record.

A Coram of Shri Baskaran B R, AM  & Shri Pavan Kumar Gadale, JM held that “the assessee has raised grounds of appeal challenging the validity of the Assessment and non-granting of TDS credit & Foreign Taxes Paid credit overlooking the DTAA with the U.S.A and there could be various reasons for non-appearance which cannot be overruled.”

Considering the principles of natural justice the bench provided one more opportunity hearing to the assessee to substantiate the case before the Assessing Officer along with evidence and information. The Tribunal set aside the order of the CIT(A) and remit the entire disputed issues to the file of the Assessing Officer to adjudicate afresh on merits.The appeal filed by the assessee was allowed for statistical purposes. 

To Read the full text of the Order CLICK HERE

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