2015 (2) TMI 1298 - AT - Income Tax

Seeking one more opportunity to furnish details before CIT(A) lest the assessee should suffer huge losses - Non furnishing of details as called by the CIT(Appeals) - Held that - Commissioner of Income Tax (Appeals) has given more than one opportunity to the assessee to furnish materials called for by him. However the assessee failed to furnish the same and hence the learned Commissioner of Income Tax (A) was constrained to pass order. At the same time we find some merit in the plea of the learned Authorised Representative. Hence in the interest of justice we are inclined to accept the plea of the learned Authorised Representative subject to payment of cost.- Appeal of the assessee is treated as allowed for statistical purpose.

Summary

Issues Involved:
Assessment year 2009-2010 - Failure to furnish details - Opportunity to submit materials - Adjudication based on available records - Appeal against order of Commissioner of Income Tax (Appeals) - Direction to assessee to pay cost - Setting aside order and restoring materials for re-examination - Requirement to furnish all details.

Analysis:
The appeal before the Appellate Tribunal ITAT Chennai was filed against the order of the Commissioner of Income Tax (Appeals) for the assessment year 2009-2010. The counsel for the assessee contended that the assessee was unable to provide certain details requested by the Commissioner of Income Tax (Appeals) due to reasons beyond their control. Consequently, the Commissioner of Income Tax (Appeals) made a decision based on the available records without giving the assessee a proper hearing. The counsel requested another opportunity for the assessee to submit the necessary materials to avoid significant losses. On the other hand, the Departmental Representative argued that the assessee had already been given sufficient opportunities to comply with the requests.

Upon hearing the arguments from both sides and examining the records, the Appellate Tribunal observed that the Commissioner of Income Tax (Appeals) had indeed provided multiple chances for the assessee to furnish the required materials, which were not submitted. However, the Tribunal acknowledged the merit in the plea made by the Authorized Representative regarding the need for justice. Consequently, the Tribunal decided to accept the plea, subject to the condition that the assessee pays a cost of Rs. 5,000 to the Income Tax Department by a specified date. Upon payment of the cost, the Tribunal directed the setting aside of the Commissioner's order and the restoration of all materials to the file for a fresh examination, with a specific instruction for the assessee to provide all requested details without fail.

As a result of the decision, the appeal of the assessee was treated as allowed for statistical purposes, with the order pronounced on the 4th day of February 2015 in Chennai.