The Income Tax Appellate Tribunal (ITAT), Bangalore bench has imposed a cost of Rs. 1000 on a taxpayer for not cooperating with the assessing officer during remand proceedings and directed the department to re-consider the matter only on payment of cost.
The assessee is engaged in the business of trading in business. Before formation of the assessee company, the business was carried on by a partnership firm with Dot Network. The business was continued in the partnership firm up to 31.10.2006. From 1.11.2006 onwards, the business of the partnership firm was taken over by the assessee company along with the assets and liabilities.
The assessee approached the Tribunal challenging the ex-parte orders passed by the assessing officer and the Commissioner (Appeals).
Mr. B.R. Baskaran, Accountant Member observed that “None appeared on behalf of the assessee, even though the case was adjourned on an earlier occasion, at the request of the A.R. of the assessee. However, I find that no power of attorney has been filed by the counsel who represented earlier. Hence, I proceed to dispose of the appeal ex-parte, without presence of the assessee.”
Considering the interest of natural justice, the Tribunal held that the assessee may be provided with one more opportunity to explain its case before Ld. CIT(A).
“Since the assessee has not cooperated before the A.O. during remand proceedings, I impose a cost of Rs.1,000/- upon the assessee, which shall be paid to the credit of Income Tax department as “other fees” within 2 months from the date of receipt of this order,” the Tribunal said.
While concluding the order, the Tribunal added that “Accordingly, subject to the payment of above said cost, I set aside the order passed by Ld. CIT(A) and restore all the issues to his file for examining them afresh. I also direct the assessee to fully cooperate with the Ld. CIT(A) for expeditious disposal of the appeal.”
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