9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (11) TMI 446 - AT - Income TaxEx-parte order Passed by CIT-A - Non granting of TDS credit Foreign Tax Paid credit - CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer - HELD THAT - We find CIT(A) has issued the notices of hearing referred but there was no response and thus the CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. We find that the assessee has raised grounds of appeal challenging the validity of Assesseement and non granting of TDS credit Foreign Taxes Paid credit overlooking the DTAA with U.S.A and there could be various reasons for non appearance which cannot be overruled. We considering the principles of natural justice shall provide one more opportunity of hearing to the assessee to substantiate the case before the Assessing Officer along with evidences and information. Accordingly, we set aside the order of the CIT(A) and remit the entire disputed issues to the file of the Assessing Officer to adjudicate afresh on merits Grounds of appeal of the assessee for statistical purposes.
Issues:
1. Condonation of delay in filing the appeal due to Covid-19 pandemic. 2. Non-granting of TDS credit and Foreign Tax Paid credit. 3. Validity of Assessment order by CIT(A). 4. Lack of appearance by the assessee before the CIT(A). 5. Opportunity for the assessee to substantiate their case before the Assessing Officer. Analysis: 1. The assessee, a resident of China, filed an appeal against the CIT(A)'s order under sections 144 and 250 of the Act, citing errors in passing an ex-parte order confirming the validity of the Assessment order and in not granting TDS credit & Foreign Tax Paid credit. The delay of 806 days in filing the appeal was explained due to the Covid-19 pandemic, which was condoned by the Tribunal based on the Supreme Court's decision on the extension of limitation period. 2. The assessee, a foreign national, was on assignment in India from 2009 to 2014, deriving income from various sources. The Assessment for A.Y. 2014-15 was completed under section 144 of the Act, where the total income was determined, but credit for Foreign Tax paid was not granted. The Tribunal found merit in the assessee's case and admitted the appeal after condoning the delay. 3. The CIT(A) confirmed the action of the Assessing Officer due to the lack of appearance by the assessee despite notices issued for hearings. The Tribunal noted that the CIT(A) dismissed the appeal ex-parte based on the available information, overlooking the grounds raised by the assessee challenging the Assessment validity and non-granting of credits. The Tribunal set aside the CIT(A)'s order and remitted the issues back to the Assessing Officer for fresh adjudication, emphasizing the principles of natural justice. 4. The Tribunal provided the assessee with another opportunity to substantiate their case before the Assessing Officer with evidence and information, ensuring adequate hearing and cooperation. The appeal was treated as allowed for statistical purposes, emphasizing the importance of due process and fairness in tax proceedings. This detailed analysis of the judgment highlights the key issues addressed by the Tribunal, including the delay in filing the appeal, non-granting of credits, lack of appearance by the assessee, and the need for a fair opportunity to present the case before the Assessing Officer.
|
