ITAT required the Assessing Officer to verify whether the correct tax credit was allowed. The assessee must present supporting evidence, ensuring accurate refunds under the Income Tax Act.
The Tribunal found the Final Assessment Order invalid as it was issued before the 30-day objection period under Section 144C expired. This violated the assessee’s procedural rights. All transfer pricing adjustments and tax demands linked to the order were deleted, partly allowing the appeal.
The Tribunal allowed the assessee another opportunity to challenge both the reopening notice u/s 148 and the addition of ₹2.25 Cr. NFAC’s ex-parte dismissal was found inappropriate in the interest of justice.
The Tribunal condoned a 27-day delay after accepting the assessee’s affidavit explaining non-intentional default and lack of familiarity with e-proceedings. It held that the CIT(A) wrongly dismissed the first appeal ex parte without addressing merits. The matter was remanded for fresh adjudication with full opportunity of hearing.
The Tribunal accepted that the delay arose from an inadvertent error by the assessee’s prior tax consultant during e-filing. It ruled that such a bona fide mistake should not deprive the taxpayer of statutory appellate remedies. All issues were remanded for fresh adjudication with proper opportunity.
The Tribunal recognized the assessee’s health issues and financial weakness as valid grounds for condoning delay, following the Supreme Court’s principle favouring substantial justice. It held that repeated notices for the same enquiry cannot multiply the default. Consequently, the penalty was scaled down to a single default, offering relief of ₹40,000.
ITAT observed that NFAC neither followed the mandatory remand requirement under Section 251(1) nor complied with the speaking-order mandate of Section 250(6). Accordingly, the matter was remitted to be adjudicated strictly as per the amended law.
The Tribunal emphasized that statutory obligations under Section 250(6) cannot be bypassed even when the assessee defaults in appearance. Lack of reasoning and non-discussion of issues rendered the NFAC’s ex-parte order unsustainable.
The Tribunal held that short notice and lack of opportunity violated principles of natural justice in rejecting 80G registration. The CIT(E) is directed to allow the assessee to explain the Trust’s objectives. The appeal was allowed for statistical purposes, ensuring fair adjudication.
ITAT Ahmedabad remands the matter after persistent non-compliance, directing the assessee to prove the source of cash payments against credit-card expenses. A cost of ₹5,000 to PMNRF is imposed as a condition for fresh examination.
