The Pune bench of the Income Tax Appellate Tribunal (ITAT) has recently ruled that the Commissioner of Income Tax (Appeals) cannot delete an assessment order without granting an opportunity to the Assessing Officer to re-consider the evidence based on which such relief was granted to the assessee.
The Assessing Officer made an addition against the assessee for the bogus purchases conducted by them. However, Ld. CIT(Appeals) has granted relief to the assessee without dealing specifically with the facts of the case and even not calling for any remand report from the Assessing Officer.
Before the ITAT, the department contended that various additional evidence was admitted by the CIT (Appeals) from the assessee but that additional evidence was not placed before the Assessing Officer for his comments.
Allowing the appeal filed by the department, the Tribunal observed that “In our view, justice should not only be done, but it should also seem to have been done. This way of giving relief to the assessee in a summarized and cryptic order by the Ld. CIT(Appeals) without calling for any remand report is not warranted from a quasi-judicial authority.”
“The parameters of justice demands that there should be check and carves on the practices conducted by the assessee so that the Revenue is not defrauded or denied of the legible taxes which it has to receive from the assessee. Merely admission of additional evidence without giving an opportunity to the Assessing Officer to confront all these evidence, without calling for remand report regarding verification of genuineness of the transactions, the Ld. CIT(Appeals) has not complied with the parameters of the law,” the ITAT said.To Read the full text of the Order CLICK HERE