Case Law Details
Blue Reservoir Business Services LLP Vs DCIT (ITAT Bangalore)
In the appeal case of Blue Reservoir Business Services LLP versus DCIT, the ITAT Bangalore has taken a unique stance. Owing to the assessee’s lack of familiarity with the ITBA (Income Tax Business Application), the tribunal directed the case for re-adjudication, underlining the critical role of technological familiarity in modern tax procedures.
Analysis: The primary issue at hand involved double disallowances of certain expenses by the Assistant Director of Centralized Processing Center (CPC), resulting in inflated tax liability. However, when the assessee appealed against this at NFAC (National Faceless Appeal Centre), they did not comply with the notices issued. The NFAC consequently confirmed the order of the AO (Assessing Officer) in an ex-parte judgment.
The non-compliance by the assessee was attributed to their Principal Officer’s limited understanding of ITBA, the key platform for managing tax procedures. In light of this, the ITAT Bangalore decided to remit the issue back to NFAC. This step acknowledged the potential technology barrier that could impede the fair hearing of a case, underlining the importance of equal access and understanding of digital platforms in tax procedures.
Conclusion: The case between Blue Reservoir Business Services LLP and DCIT brings forward the significant influence of technology literacy in modern tax practices. ITAT Bangalore’s decision to direct the case for re-adjudication due to the assessee’s limited knowledge of ITBA emphasizes the necessity of familiarizing oneself with such platforms. It also stresses the importance of creating more user-friendly and accessible digital systems in the taxation sector to avoid such occurrences in the future.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
