Shamrock Apparels Vs ITO (ITAT Visakhapatnam)
The Income Tax Appellate Tribunal (ITAT) Visakhapatnam has remanded the case of Shamrock Apparels vs. ITO back to the Commissioner of Income Tax (Appeals), or CIT(A), granting the assessee a final chance to present its case. The appeal was filed by Shamrock Apparels, a partnership firm, challenging an adjustment of ₹31.22 lakh made to its Long-Term Capital Gains (LTCG) during the Centralized Processing Center (CPC) assessment for the assessment year 2023-24.
The CPC, while processing the firm’s income tax return, calculated the LTCG at a higher value than what was reported by the assessee. When the firm appealed this adjustment, the CIT(A) upheld the assessment order. This decision was based on the firm’s failure to respond to multiple notices issued during the appellate proceedings. The ITAT noted this lack of compliance but decided to provide a final opportunity in the interest of natural justice, citing the significant financial demand involved.
This decision reflects a common judicial approach, where courts and tribunals prioritize the principle of giving every party a fair hearing. A key precedent in this area is the Supreme Court’s ruling in Collector, Land Acquisition, Anantnag v. Mst. Katiji (1987), which established that a liberal and pragmatic approach should be taken when considering requests for condonation of delay or additional opportunities. The court’s intent is to ensure that a case is decided on its merits rather than on procedural defaults. The ITAT’s order aligns with this principle, providing the assessee with one last chance to substantiate its claims before the CIT(A) and cooperate with the remand proceedings.
