CIT(A) Cannot Avoid Deciding Grounds and Ask Assessee to File Another Appeal: ITAT Kolkata

Pricewaterhouse Coopers Pvt. Ltd. Vs DCIT (ITAT Kolkata)

CIT(A) Cannot Avoid Deciding Grounds and Ask Assessee to File Another Appeal: ITAT Deprecates Repeated Passing of Such Orders

Summary: The Kolkata Bench of the Income Tax Appellate Tribunal has strongly deprecated the practice of Commissioners (Appeals) passing orders without granting a hearing and without adjudicating the grounds raised by the assessee.

The Tribunal expressed surprise at an order in which the CIT(A), instead of deciding the appeal on merits, identified alleged defects in the assessment order, issued directions concerning the incorporation of a transfer-pricing adjustment and informed the assessee that it could pursue another appeal against the order giving effect to the appellate order.

Holding that the assessee’s substantive grounds had not been adjudicated and that no opportunity of hearing had been provided, the Tribunal set aside the first appellate order and restored the entire matter to the CIT(A) for fresh adjudication on merits.

Background of the case

Pricewaterhouse Coopers Pvt. Ltd. filed an appeal before the CIT(A), National Faceless Appeal Centre, against the assessment for Assessment Year 2021-22.

The dispute involved a transfer-pricing adjustment of ₹48,11,000, proposed through an order passed by the Transfer Pricing Officer under Section 92CA(3) on 18 September 2023.