‘False and frivolous, submissions by CIT (DR) before ITAT constitute ‘criminal contemp’ and justify recovery of costs from salary

CIT (DR)- XII, ITAT Vs. Simoni Gems (ITAT Mumbai) –In appeal assessee raised preliminary objection that the notice u/s 143(2) was not issued within the prescribed period of 12 months and  AO accepted that the notice under 143(2) notice was not been issued in time. Accordingly, the Tribunal, relying on Hotel Blue Moon 321 ITR 362 (SC), dismissed the department’s appeal without going into the merits of the appeal.

Thereafter, the CIT-DR written two letters to the ITAT Members in which he made the following arguments:-

(i) permitting the assessee to argue first in the department’s appeal was against “norms in appellate proceedings“,

(ii) the Bench had “passed the order in undue hurry” without waiting for the department’s written submissions to be filed and

(iii) the order was “ex parte”. It was also alleged that the letter was sent by post as the Bench clerk had refused to accept the letter. The letters were treated as a MA by the Tribunal and heard.

Thereafter, the CIT-DR filed a letter of apology clarifying that it was not his intention to “hurt the sentiments” of the Members.

Honourable ITAT has dealt precisely with each assertion made by the CIT-DR and termed them as “frivolous and untrue“and held as follows:-