2021 (1) TMI 353 - AT - Income Tax

Non appearance by assessee - HELD THAT - Undisputedly, assessee did not appear before both the lower authorities and has wasted precious time of the Revenue. In such case, we cannot set aside the matter to the lower authorities without any cost. Thus, in the interest of justice, we impose a cost of ₹ 10,000/- which shall be deposited by the assessee to the Revenue and matter is set aside to the file of the Ld. CIT(A) to decide the matter after giving an opportunity of being heard to the assessee. Appeal filed by the Assessee is allowed for statistical purposes.

Issues:
1. Lack of reasonable opportunity provided to the assessee by the assessing officer.
2. Failure to consider indexed value of the cost of purchase in the total addition sustained by the CIT(A).
3. Failure to recognize TDS deductions on salary and interest received by the assessee.
4. Request to revert the orders passed by the CIT(A) and the assessing officer.
5. Error in initiating penalty under section 271(1)(c) by the assessing officer.
6. Interpretation of the law liberally by the assessing officer based on various judgments.
7. Non-appearance of the assessee before the lower authorities leading to imposition of a cost of ?10,000.

Analysis:
1. The appeal raised concerns regarding the lack of a reasonable opportunity provided to the assessee by the assessing officer. The CIT(A) confirmed the action of the assessing officer due to the non-appearance of the assessee before both authorities, resulting in the imposition of a cost of ?10,000 on the assessee. The Tribunal set aside the matter to the file of the CIT(A) for a fresh decision after providing an opportunity of being heard to the assessee.

2. The failure to consider the indexed value of the cost of purchase in the total addition sustained by the CIT(A) was highlighted in the appeal. The Tribunal acknowledged this discrepancy and directed the CIT(A) to reevaluate the matter after the assessee's deposition of ?10,000 to the Revenue. The appeal was allowed for statistical purposes.

3. The issue of failure to recognize TDS deductions on salary and interest received by the assessee was also raised in the appeal. The Tribunal emphasized the importance of providing all documentary evidence within time to support the assessing officer in determining the rightful tax amount and paying the dues.

4. The appeal also addressed the error in initiating a penalty under section 271(1)(c) by the assessing officer. The Tribunal did not delve into this specific issue in the judgment but allowed the appeal for statistical purposes.

5. Regarding the request to revert the orders passed by the CIT(A) and the assessing officer, the Tribunal directed the matter back to the CIT(A) for a fresh decision, emphasizing the need for the assessee to deposit ?10,000 to the Revenue before proceeding with the appeal.

6. The assessing officer's interpretation of the law liberally based on various judgments was mentioned in the appeal. The Tribunal did not provide a detailed analysis of this issue in the judgment but focused on the procedural aspects and the need for the assessee's presence during proceedings.

7. The non-appearance of the assessee before the lower authorities led to the imposition of a cost of ?10,000. The Tribunal stressed the importance of the assessee's participation in the proceedings to ensure a fair and just decision-making process.

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