2020 (3) TMI 944 - AT - Income Tax

Tax Tribunal Grants Assessee Appeals, Emphasizes Merits Adjudication

The Tribunal allowed all appeals filed by the assessee for statistical purposes, emphasizing the necessity for a thorough adjudication of issues on ... Denial of natural justice - assessee challenged the exparte order passed by the ld. CIT(A) without affording sufficient opportunity of being heard and without addressing the grounds of appeals on merits - assessee prayed for suitable directions by giving an opportunity of being heard to the assessee - HELD THAT:- Against various additions made in the assessment order passed under section 143(3) r.w.s. 92CA of the Act for the assessment years under consideration, the assessee preferred appeal before the ld. CIT(A). On perusal of the appellate order, we find that while concluding the appellate order, the ld. CIT(A) has not adjudicated the issues on merits based on the facts and circumstances. Accordingly, we set aside the order of the ld. CIT(A) and direct the ld. CIT(A) to adjudicate the issues on merits in accordance with law and to meet the ends of justice, the assessee may be given an opportunity of being heard to present its case. The assessee shall furnish detailed explanation/evidences, as the case may be, to substantiate its claim for adjudication. Further, the assessee is directed to appear before the ld. CIT(A) and cooperate to conclude the appellate proceedings, as has been committed before the Tribunal by its letter dated 25.02.2020. Thus, the ground raised by the assessee is allowed for statistical purposes. Issues:Challenging exparte order by CIT(A), Assessments for multiple years, Non-deduction of TDS leading to being treated as 'assessee in default', Lack of detailed representation in appeals, Adjudication of issues on merits.Challenging exparte order by CIT(A):The appeals filed by the assessee were directed against the common order of the ld. Commissioner of Income Tax (Appeals) for multiple assessment years. The main challenge was against the exparte order passed by the ld. CIT(A) without affording sufficient opportunity of being heard and without addressing the grounds of appeals on merits.Assessments for multiple years:The assessee had filed returns for various assessment years admitting total income, which were subsequently revised. Assessments were completed under section 143(3) r.w.s. 92CA of the Income Tax Act, making various additions to the income declared by the assessee.Non-deduction of TDS leading to being treated as 'assessee in default':During verification of Form 15CA/CB, it was found that the assessee had not deducted TDS on payments made to non-residents. This led to the Assessing Officer treating the assessee as 'an assessee in default' under section 201(1)(IA of the Act and bringing the payments to tax.Lack of detailed representation in appeals:The assessee's appeals before the ld. CIT(A) did not have detailed representation against various additions made during assessments. Consequently, the ld. CIT(A) did not conclude the grounds raised in the appeals on merits.Adjudication of issues on merits:Upon hearing both sides and reviewing the orders of authorities below, the Tribunal found that the ld. CIT(A) had not adjudicated the issues on merits based on facts and circumstances. The Tribunal set aside the order of the ld. CIT(A) and directed a fresh adjudication on merits, providing the assessee with an opportunity to present its case and furnish detailed explanations/evidences. The assessee was also directed to cooperate in concluding the appellate proceedings.In conclusion, all the appeals filed by the assessee were allowed for statistical purposes, with the Tribunal emphasizing the need for a thorough adjudication of issues on merits and providing the assessee with a fair opportunity to present its case.