Participation in proceedings before Tax Authorities should be given High Priority: ITAT says Govt Corporation is like any Other Assessee cannot be given Preferential Treatment [Read Order]

The Income Tax Appellate Tribunal (ITAT), Chandigarh bench consisting of Diva Singh, Judicial Member and Vikram Singh Yadav, Accountant Member held that participation in proceedings before Tax Authorities, should be given high priority and Government Corporation is like any other assessee cannot be given preferential treatment.

The assessee, M/s H.P. Agro Industries Corp. Ltd a Government Corporation of the H.P. Government. The assessee is stated to be engaged in trading of items like Tractor, Iron and Steel, Tyres and Tubes, Insecticides and Pesticides etc. It is also seen to be carrying on manufacturing activities such as formulation of animal feed, insecticides and pesticides, processing honey and fabrication of agricultural implements road and forest tolls etc .The assessee’s representation before the Assessing Officer (AO) has been an abuse of the process of law as effectively there was no participation and that It is seen that after affording opportunities the Assessing Officer ultimately passed the order u/s 144 as the claims in the return remained unsubstantiated despite opportunity. Hence the Assessing Officer dismissed the plea of the assessee. Aggrieved by the action of the AO the assessee filed an appeal before the Commissioner of Income Tax (CIT). The CIT confirmed the order of AO. Aggrieved by the said order the assessee approached the Tribunal.

The Tribunal said” We would like to make it clear that the assessee, even though it is a government authority cannot be permitted to abuse the process of law. Government Corporation is like any other assessee before the tax authority and cannot be allowed to plead that on this count it be given a preferential treatment and be allowed to escape the responsibilities of representing their case before the other governmental authorities including the tax authorities. We make it clear that merely because the assessee is a Government Authority, it itself is no reason for the authority to act in an irresponsible and negligent manner. Participation in the proceedings before the Tax Authorities, it is expected, be given a high priority always, specially so by the Government authorities which exist and function for the benefit of the State.”

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