Non-Cooperation during Income Tax Assessment Proceedings: ITAT imposes Cost of Rs. 25,000 [Read Order]

The Income Tax Appellate Tribunal (ITAT), Delhi bench has held imposed a cost on the assessee by observing that the assessment proceedings got delayed due to non-cooperation of the assessee. A two-Member bench of the Tribunal comprising Shri Pradip Kumar Kedia, Accountant Member & Shri Narender Kumar Choudhry, Judicial Member also remitted the matter back to the files of the Assessing Officer for fresh consideration in order to avoid the violation of natural justice principles.

The bench noted that assessee, Vavasi Telegence P. Ltd, has not assigned any valid reason for continuing non compliance before the Assessing Officer or before the CIT(A). The Assessing Officer has passed the order summarily in the circumstances and the CIT(A) has also disposed off the first appeal in limine.

“In the totality of circumstances, we consider it expedient to restore the matter back to the file of the Assessing Officer in the larger interest of justice with a view to enable the assessee to avail opportunity once more. However such benevolence will be available at the cost of Rs.25,000/- to be deposited by the assessee within 1 month of service of this order to The Prime Minister Relief Fund. It shall be open to the Assessing Officer to make such inquiry as may be considered expedient in accordance with law on being satisfied towards payment of cost awarded. Needless to say, the assessee shall fully co-operate with the proceedings before the Assessing Officer without any demur and shall furnish the evidences/documents etc. as called for expeditiously,” the Tribunal said.

Shri D.M. Singha, Advocate and Ms. Parul Bansal, CA appeared for the assessee.

To Read the full text of the Order CLICK HERE

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Vavasi Telegence P. Ltd vs ITO , 2022 TAXSCAN (ITAT) 572 , Shri D.M. Singha,Ms. Parul Bansal , Shri Vipul Kashyap