The Delhi bench of the Income Tax Appellate Tribunal (ITAT) comprising Shri Challa Nagendra Prasad, (Judicial Member) & Shri Pradip Kumar Kedia (Accountant Member) has imposed a cost of Rs. 2000 on the assessee for neglected the income tax notices.
The division bench was considering an appeal by the assessee, Mr. Satya Prakash challenging the ex-parte orders against him.
The assessee contended that he is a very small person of ordinary means and has no taxable income and thus no proper understanding of law. It was also contended that one more opportunity shouldbe given to balance the justice and enable the department to pass just and fair order. In the alternate, it was contended that the addition of cash deposits should be restricted to 8% which is the benchmark as provided in the presumptive taxation scheme.
The bench observed that the assessee has failed to appear before the Assessing Officer in the assessment proceeding resulting in ex-parte additions on estimated basis towards cash deposits of Rs.17,12,090/-.The assessee has also failed to appear before the CIT(A).
“Having regard to the total non attendance before the lower authorities, we do not seek to express any opinion on merit. However, the appeal in ITA No.8114/Del/2019 and other connected appeals captioned above are restored back to the file of the CIT(A) for adjudication afresh in accordance with law after giving proper opportunity to the assessee,” the Tribunal said.
While remitting all the matters to the file of the CIT(A), the Tribunal also observed that “we consider it necessary to impose a token cost of Rs.2,000/- to the assessee in aggregate owing to continued negligence shown to the statutory notices at both the levels. The assessee shall deposit the cost awarded in favour of ‘The Prime Minister Relief Fund and receipt thereof shall be furnished before the CIT(A).”
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