ITAT Imposes ₹1000 Fine for Non-Appearance during Assessment Proceedings, Payable to PM Relief Fund [Read Order]

The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) has imposed a ₹1000 fine for non-appearance during assessment proceedings before both the Assessing Officer and the Commissioner of Income Tax (Appeals) (CIT(A)), which is to be paid to the Prime Minister's Relief Fund, with proof of payment required to be submitted to the Assessing Officer for verification.

The appeal under consideration is directed against the order of the National Faceless Appeal Centre (NFAC) passed for the assessment year 2017-18 on 18.04.2024 under Section 250 of the Income Tax Act, 1961.

Get a Copy of Bharat’s Income Tax Act, Click here

The assessee Mohammed Kaleem raised multiple grounds challenging the merit of the addition made by the assessing officer (AO) and sustained by the NFAC. Additionally, the assessee presented supplementary grounds concerning the non-issuance of notice under Section 143(2) of the Income Tax Act.

During the hearing, Mr. Subamanian S., representing the revenue, produced a copy of the notice issued under Section 143(2) dated 24.09.2018 along with postal acknowledgment confirming the notice's delivery to the assessee. Consequently, Mr. Shreehari Kutsa, representing the assessee, did not present any arguments before the Income Tax Appellate Tribunal (ITAT). As a result, the additional grounds raised by the assessee were dismissed.

Get a Copy of Bharat’s Income Tax Act, Click here

The CIT(A)/NFAC’s order was passed ex-parte, with the assessment order also issued under Section 144 of the Income Tax Act due to the assessee’s non-appearance before the AO. The counsel for the assessee requested an opportunity to present the case, asserting that no hardship would be caused to the department or revenue if such an opportunity were granted.

Considering the facts and circumstances, the two-member bench of the tribunal, comprising Waseem Ahmed (Accountant Member) and Yogesh Kumar U.S (Judicial Member), deemed it appropriate to remit the issue back to the AO for fresh consideration. Additionally, due to the assessee's failure to appear before both the AO and CIT(A), the ITAT decided to impose a cost of Rs. 1,000/- on the assessee. This amount is to be paid to the Prime Minister's Relief Fund, and proof of payment must be submitted to the AO for verification. The appeal was partly allowed for statistical purposes.

To Read the full text of the Order CLICK HERE

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