The Hyderabad bench of Income Tax Appellate Tribunal (ITAT) while observing non-compliance of statutory notices due to unavoidable circumstances imposed cost of Rupees 10,000 on assessee for callous and non-cooperation attitude .
Assessee Kista Goud Idgi Medak is an Individual, after filing the income tax return assesses case was selected for scrutiny under CASS and statutory notices under section 143(2) and 142(1) were issued to the assessee calling for certain information related to the Profit and loss account, balance sheet , copies of the Bank Account nature of the cash deposit reflected in the Bank account and sources of cash deposits and proof/evidence for the deductions claimed under Chapter VIA of the Income Tax Act ,1961.After completing the assessment assessing officer make various additions .
Against this order assesee filed an appeal before the Commissioner of Income Tax Appeal (CITA) but they passed an ex parte order against assessee because of non appearing .Against the order assesee filed an appeal before the ITAT.
K.C. Devdas, counsel for the assessee submits that due to unavoidable circumstances, the assessee could not appear before the learned CIT (A).
Kumar Aditya, counsel for the revenue submits that despite the number of opportunities granted, the assessee did not appear before CIT (A).
After considering the contentions of the both parties the division bench of ITAT comprising R.K. Panda, (Accountant Member) and Laliet Kumar, (Judicial Member) allowed the appeal filed by the assessee and direct the assessee to pay cost of Rs.10,000/-for callous and non-cooperation attitude and the same should be paid to the PM’s Relief Fund.
Further, the bench restore the issue to the file of the CIT(A) with a direction to grant one last opportunity to the assessee to substantiate his case and decide the issue as per fact and law.
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