2018 (11) TMI 1173 - HC - Income Tax

Exparte order - Held that - Appellant is justified in making a grievance that the Tribunal did not put some check or restriction on the assessee so that sense of seriousness is brought about in the proceedings. In our prima facie view, even if the Tribunal was inclined to grant opportunity to participate in the proceedings, at least imposition of fair amount of cost could have been considered. This would bring in a level of seriousness required on the part of the assessee while facing assessment proceedings. However, only for such purpose, we are not inclined to entertain this appeal, since otherwise we do not find any question of law arising.

Summary

Issues:
1. Appeal against the judgment of the Income Tax Appellate Tribunal.
2. Setting aside the order passed by the CIT(A) for fresh adjudication.
3. Consideration of total non-compliance by the assessee before CIT(A).

Analysis:
1. The Revenue appealed against the judgment of the Income Tax Appellate Tribunal, questioning the setting aside of the order passed by the CIT(A) for fresh adjudication. The main contention was the alleged non-compliance by the assessee despite sufficient opportunities provided by the CIT(A). The Appellate Tribunal was criticized for not appreciating the lack of material due to the non-compliance of the assessee, which led to the CIT(A) framing an order based on the Assessing Officer's findings. The issue raised was whether the Tribunal erred in remanding the matter to the CIT(A) without considering the justifiability of the assessee's non-compliance.

2. In a similar case, Tax Appeal No. 1192 of 2018, the Tribunal had remanded the proceedings for the consideration of CIT (Appeals) due to an exparte appeal order. The Tribunal's decision was questioned by the Revenue, arguing that there should have been some checks or restrictions on the assessee to ensure seriousness in the proceedings. The High Court dismissed the appeal, noting that while the Tribunal could have imposed costs to emphasize the seriousness required from the assessee, the lack of a legal question led to the dismissal of the appeal. The Court emphasized the need for seriousness in assessment proceedings and advised the Tribunal to consider such aspects in the future.

3. The judgments highlighted the importance of compliance and seriousness in tax proceedings, emphasizing the need for both the assessee and the Tribunal to act diligently. The decisions underscored the significance of providing adequate opportunities for participation while ensuring accountability and adherence to procedural requirements. The cases serve as a reminder for all parties involved in tax disputes to approach the proceedings with diligence and respect for the legal process to maintain the integrity of the tax system.