Failure to participate in Appellate Proceedings: ITAT directs Assessee to Pay Rs. 10,000 to PM’s National Relief Fund [Read Order]

The Delhi bench of the ITAT has asked the assessee to pay an amount of Rs. 10,000 to the PM’s National Relief Fund for miserably failing in participation in the appellate proceedings.

The assessee, M/s Anant Media Pvt Ltd, filed a return of income declaring total loss of Rs .4,95,25,480/- which has been revised to a total loss of Rs .5,63,91,626/-. The assessment has been completed making addition of Rs.3,05,00,000/- on account of share premium and loans. Against the assessment, the assessee approached the CIT(A), but failed. Therefore, the assessee approached the Tribunal for relief.

During the appeal proceedings, the Tribunal send notice of hearing on 02.12.2021 fixing the date of hearing on 18.01 .2022 at the address given in Form 36. No one attended on the date of hearing nor any adjournment letter was filed.

The Tribunal bench comprising Mr. Saktijit Dey, Judicial Member and Dr. B. R. R. Kumar, Accountant Member observed that there is no effect on the payment of tax by the assessee as the assessed returned income culminated in the loss of Rs.2.58 Crores.

“This only leads to the conclusion that the assessee is aggrieved with the additions on a basis of principle and future effect of carrying forward of losses. The assessee has failed to appear on 14 occasions before the ld . 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 ld . CIT(A) on “ex-parte” basis,” the Tribunal said.

Allowing the appeal filed the assessee, 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 with 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 pre-empted 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 afford an opportunity of being heard by the assessee before the conclusion of the proceedings.”

To Read the full text of the Order CLICK HERE

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