Failure of assessee to give proper reasons for not appearing before the Tax Authorities: ITAT imposes cost

Categories: News

The Banglore Bench of the Income Tax Appellate Tribunal (ITAT) consisting of B.R. Baskaran (Accountant Member) has imposed a cost of Rs.10,000 on the assessee for the failure to give proper reasons for not appearing before the tax authorities.

The assessee/appellant is the director of the group company named M/s. Panama Nature Fresh Pvt. Ltd. It was the understanding of the assessee that the purchase of jewellery as well as deposits of money into the bank account were being assessed in the hands of the assessee’s husband. However, they were assessed in the hands of the assessee, and hence the assessee filed appeals before the CIT (A).

The assessee submitted that the assessee could not appear before the CIT (A) for reasons beyond her control. The assessee has filed appeals against the CIT (A) decision. The assessee has a strong case on the merits and has requested that the appeals be heard.

The department submitted that the assessee has not appeared before the AO as well as the CIT (A). Accordingly, the order passed by the CIT (A) should be upheld.

The ITAT noted that CIT (A) had passed the ex-parte order without hearing the assessee since the assessee had not appeared before him despite being given several opportunities.

“Since the assessee has not afforded proper reasons for not appearing before the tax authorities, I am of the view that the assessee shall be imposed cost. Accordingly, I impose a cost of Rs.10,000 (Rs.5.000 for each AY), which shall be paid to the credit of the Income Tax Department within one month from the date of receipt of this order by the assessee as other fees,” the tribunal ordered.

Case Title: Mrs. Amritha Raj Versus ACIT

Source from:

We have recently released the 7th Edition (May, 2022) of our book on Goods and Services Tax, titled, “GST LAW AND COMMENTARY – WITH ANALYSIS AND PROCEDURES”, updated with the Finance Act, 2022 in a set of 4 Volumes. We thank you all for the support and your enduring response.

Have a look at the complete tour of the Book at:

Order your copy now and be a part of the GST learning excursion in the most comprehensive and lucid form !!

For more details and purchase online at:

Your Thoughts