Glenco Distilleries Pvt. Ltd. Vs ITO (ITAT Chennai)
The Income Tax Appellate Tribunal (ITAT) Chennai ruled in favor of Glenco Distilleries Pvt. Ltd., setting aside an ex-parte order issued by the Commissioner of Income Tax (Appeals) [CIT(A)], NFAC, Delhi, for the Assessment Year 2017-18. The CIT(A) had passed the order after the assessee failed to respond to nine notices issued during the appellate proceedings. The assessee attributed this non-compliance to technical glitches, including network issues, which prevented their awareness of the notices. Additionally, the company’s directors were unavailable, and tax-related employees were unaware of the situation. Despite a single request for adjournment being acknowledged by the CIT(A), the order was still passed ex parte.
The ITAT reviewed the case and determined that the assessee deserved another opportunity to present its case. The Tribunal restored the appeal to the CIT(A), directing them to allow the assessee to submit relevant documents and substantiate its grounds of appeal. The CIT(A) was further instructed to adjudicate the matter in compliance with Section 250(6) of the Income Tax Act, 1961. If necessary, the CIT(A) may also call for a remand report.
The ITAT emphasized ensuring a fair hearing and adjudication based on legal standards. This decision highlights the importance of addressing technical issues that may impact compliance and ensuring taxpayers are granted adequate opportunities to present their case. The appeal was allowed for statistical purposes, with the order issued on December 4, 2024, in Chennai.
