Saha Medi Services Pvt. Ltd. Vs ITO (ITAT Kolkata)
One More Chance, But With a Price – Ex Parte Appeals Revived with cost of ₹25,000 Cost for Non-Cooperation- ITAT Kolkata
Kolkata Tribunal condoned a delay of 265 days & restored both quantum & penalty appeals to AO, subject to payment of cost of ₹25,000 by Assessee.
Assessee had challenged two separate orders of CIT(A) , one relating to quantum addition & the other confirming penalty u/s 270A. Both appeals were delayed by 265 days. Tribunal found the reasons for delay plausible & condoned the delay.
It was noticed that both CIT(A) orders were ex parte as Assessee had failed to appear & had also not provided requisite details before AO. Tribunal held that in the interest of justice, one more opportunity must be given but such opportunity should not go without consequence in view of consistent non-cooperation by Assessee. Accordingly, both issues were restored to AO for de novo adjudication after giving proper hearing to Assessee. At the same time, Tribunal imposed a cost of ₹25,000 on the Assessee, directing payment to Legal Aid Services, High Court, Calcutta within 60 days. It was further directed that proof of payment must be produced before CIT(A) at the first hearing, failing which CIT(A)’s orders would stand automatically confirmed.
