Cable and Wireless (India) Ltd. Vs DCIT (ITAT Mumbai)
Income Tax Appellate Tribunal (ITAT) Mumbai has dismissed an appeal filed by Cable and Wireless (India) Ltd., an Indian branch of a UK-based non-resident company, ruling the appeal non-maintainable before the Tribunal. The core issue revolved around the correct appellate forum for an assessment order passed by the Assessing Officer (AO) following a remand from the ITAT itself. The Tribunal concluded that such an order, even if termed an “order giving effect to ITAT’s order,” should first be challenged before the Commissioner (Appeals) and not directly before the ITAT.
The decision, pronounced on December 16, 2019, highlights a crucial procedural aspect of tax litigation concerning the hierarchy of appeals.
Chronology of the Dispute
For the assessment year 2011-12, Cable and Wireless (India) Ltd. had filed its return declaring nil income. The Assessing Officer subsequently framed a draft assessment order proposing additions, which were challenged by the assessee before the Dispute Resolution Panel (DRP). Following DRP directions, the AO passed a final assessment order.
The assessee then appealed this final assessment order to the ITAT. In an order dated June 8, 2016 (rectified on January 4, 2017), the Tribunal restored the disputed issues for fresh adjudication by the Assessing Officer. In pursuance of these directions, the AO passed an order on March 8, 2017, explicitly termed “order giving effect to ITAT’s order,” making certain disallowances and computing the total income. This order led to tax being assessed under Section 115JB of the Income Tax Act.
