ITAT imposes Cost of Rs. 5,000 for Negligent Attitude during Income Tax proceedings [Read Order]

The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has imposed a cost of Rs. 5,000 for the negligent attitude during the income tax proceedings.

The assessee, in the present case, a HUF approached the Tribunal challenging the order of the CIT(A), wherein the addition of Rs.34,44,024/- was deleted in the individual case of Shri Hashesh V.Patel with a direction to make the said addition in the case of assessee; namely, Hashesh V.Patel HUF as the relevant transaction was found to be pertaining to the assessee-HUF.

The Assessing Officer, completed the assessment on the basis of material available on record and in the assessment so made vide an order dated 30/06/2016, he made an addition of Rs.34,44,024/- to the total income of the assessee on account of Capital Gain arising from the sale of property which was not disclosed in the return of income.

Shri Pramod M. Jagtap, ITAT Vice President has observed it is fair and proper and in the interest of justice to give one more opportunity of being heard to the assessee.

While imposing a cost on the assessee the Tribunal concluded “However, keeping in view the casual and negligent attitude of the assessee especially during the course of assessment proceedings, I impose a cost of Rs.5,000/- on the assessee. Subject to the payment of said cost to be made by the assessee to the Prime Minister’s Relief Fund, I set aside the impugned order passed by the Ld.CIT(A) ex-parte dismissing the appeal of the assessee for non-prosecution and restore the matter to the file of the Assessing Officer for making the assessment afresh in accordance with law after giving the assessee one more opportunity of being heard. As undertaken by the Ld.counsel for the assessee at the time of hearing before the Tribunal, the assessee shall make due compliance before the Assessing Officer and shall extend all the possible co-operation in order to enable the Assessing Officer to complete the assessment afresh expeditiously.”

Shri S.N. Divatia, AR appeared for the assessee.

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