The Jaipur Bench of the Income Tax Appellate Tribunal (ITAT) directed assessee to deposit cost on Prime Minister Care Fund due to non compliance of notices and held that it amounts to disregard of quasi -judicial authority.
The assessee, Gopal Singh filed an appeal against the exparte order passed by the Commissioner Of Income Tax (Appeals) under section 250 of the Income Tax Act, 1961 for the assessment year 2011-12.The assessee challenged the reopening of assessment by AO under Section 147 of Income Tax Act.
Before the bench, the assessee submitted that the exparte order of CIT (A) was sent through email. However, the assessee being a 71 years old person, did not use e-mail and the fact regarding passing of the order by CIT (A) had come to the notice and knowledge of the assessee when he received a notice of penalty in person from the Income Tax Department.
The tribunal after considering the appeal observed that during appellate proceedings beforeCIT (A), the assessee had neither responded to the notices issued to him nor submitted anything in support of the grounds raised, therefore, in the absence of written arguments or written submissions, the CIT (A) while sustaining the order of the AO, dismissed the appeal filed by the assessee ex-parte.
The assessment order was also passed ex-parte in absence of assessee.it was further observed that gross negligence occurred on part of the assessee and made wastage of precious judicial time.However various notices issued to assessee it would dis-regard towards the Authorities.
After reviewing the facts and submission the two member bench of the tribunal comprising Rathod Kamlesh Jayantbhai (Accountant Member) and Sandeep Gosain (Judicial Member) observed that non compliance of the notices amounts to disregard of quasi-judicial authority.
Thus, considering the principle of AUDI ALTERAM PARTEM the bench provides another chance for hearing the matter. Therefore the bench restored the matter to the file of the AO to decide afresh, subject to cost of Rs. 2,000/- on the assessee for negligent attitude during income tax proceedings, to be deposited in the Prime Minister’s Care Fund .
Monisha Choudhary, appeared for the revenue during the proceedings.
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