TaxTMI 
TaxTMI 
2018 (6) TMI 1734
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....tive's agreement. For this, the Ld. AR relies upon the decision of the SMC Bench of the Tribunal in the matter of R. T. Balasubramian V. ITO [1994) 50 ITD 513]. Our attention was drawn to paras 8 and 9 of the order, to the following effect : 8. I have considered the rival submissions and perused the papers filed before me. The Dy. Commissioner (Appeals) noticed that the assessee's authorised representative, Shri V. Ramachandran, B. Com., Auditor, Tirupur had agreed for additions for all the four assessment years under consideration on behalf of the assessee and that he had also signed in the order sheets of the relevant assessment years for having agreed for the additions proposed by the Assessing Officer. He observed that as per section 246(1) any assessee aggrieved by the order of the Assessing Officer may appeal to the first appellate authority. In that view of the matter, he held that It could not be said that the assessee was aggrieved in this case as the additions made by the ITO were made as agreed to by the authorised representative of the assessee. In the circumstances, he dismissed the appeals filed by the assessee. The Departmental Representative filed a paperbo....
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....e voluntarily and not made on any misapprehension of facts or mistaken belief, then the statement made by the representative was in the course of and Incidental to assessment proceedings. From the aforementioned observation of the Kerala. High Court, it may be seen that normally if the assessee's representative agrees to disallowance of a claim voluntarily, then it should not be open to the assessee to retract from such an agreement. However, It may be seen that if the assessee's authorised representative agrees to disallowance of a claim for deduction as business expenditure on any misapprehension of facts or mistaken belief, then the same would not bar the assessee from vindicating his grievance by preferring an appeal. The Bombay High Court in the case of Dayaram Vasudeo (supra) has, while dealing with a similar issue, inter alia observed that if the assessee agrees to addition to income and subsequently the Chartered Accountant furnishes an affidavit showing that the admission by the assessee was made erroneously, then the Tribunal is justified in deleting the addition. In the instant case, it is no doubt true that the authorised representative of the....
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.... liability. In that sense, a view prevails. even is England, that the authorities sitting in appeal in a tax case, cannot be regarded as deciding alls, but they are only engaged in an administrative act of adjusting the taxpayer's liability. Under our fiscal jurisprudence, we may regard the appellate authorities as exercising quasijudicial functions in the same sense as a taxing officer does. But, even so, the proceedings before them lack the basic elements of adversary proceedings. It, therefore, follows that the discussion and the scope of the appellate jurisdiction of the Tribunal and other authorities under the tax code cannot be pursued by drawing a parallel to civil litigation with particular reference to appeals from decrees, and the like. The insistence on one party to the appeal being entitled to the fruits of finality, as it is called, and the appellate authority being confined to the subject-matter of the appeal are all ideas which might have relevance if the discussion centres on purely civil litigation and such like adversary proceedings as in an industrial dispute. But in a case where the Revenue is all the while a party, in a manner of speaking, and is also at the sa....
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....er than merely relying on the basis of the admission made by the authorised representative of the assessee. Though in law, we do not agree with the proposition canvassed before us that the admission made in the assessment proceedings is not binding, as it is for the assessee to satisfy the first appellate authority under what circumstances the said admission were made and why the admissions are not binding on the assessee . In the considered opinion of the bench the said submissions (non binding of admission) should be supported by an affidavit of the authorised representative in the assessment proceedings. In that eventuality, the first appellate authority shall be deciding on non binding effect of admission made by the authorised representative. It is a settled proposition of law that the procedure of the Tribunal or the assessment proceedings are akin to civil proceedings and for that purposes not only the principle of natural justice but also the procedure as provided under the Civil Procedure Code can be resorted to. Though it is correct that the purpose of adjudication by the AO / CIT (A) or per se, the Tribunal is to determine the tax payer's liability correctly, bu....
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....he authorised person through a Board Resolution. If we hold that the Act of the representative does not bind the assessee, the very basis of working of the judicial system would collapse. Accordingly the judgment relied upon by the assessee is not binding. Respectfully following the judgment of the Hon'ble Supreme Court relied upon by the CIT(A) , We hold that the statement made by the authorised representative, who has been expressly authorised by the assessee, binds the assessee. 06 Having said so, if we look into the facts of the present case, the CIT (A), despite having adjudication, by the AO, on merit albeit reordering admission, has not adjudicated the grounds on merit and has decided the appeal merely on the basis of the admission made by the authorised representative. In the fitness of present case and peculiar facts of the case, we are of the opinion that the matter is required to be re-examined by the CIT (A) on merit as AO had decided the issues on merit and thereafter had recorded admission . Therefore we remand the matter back to the file of the CIT (A) for de-novo decision on all the grounds . Needless to say it will be done after following the due procedure and a....