Anup Nayak Vs CIT(A) (ITAT Kolkata)
The Income Tax Appellate Tribunal (ITAT) Kolkata has set aside an ex parte order against Anup Nayak, a contractor, and remanded the case back to the Commissioner of Income-tax (Appeals) for fresh consideration. The case, which pertains to the assessment year 2012-13, involves a demand of Rs. 5,50,980 for the non-deduction of tax at source (TDS).
Nayak, who is engaged in mining and trading, failed to deduct TDS on expenses including dumper hire charges, lease rent, and interest on loans. The Assessing Officer consequently disallowed these expenditures and initiated proceedings under sections 201(1) and 201(1A) of the Income-tax Act.
After the initial appeal was dismissed ex parte by the CIT(A) due to Nayak’s non-appearance, the assessee appealed to the ITAT. Despite the assessee’s continued absence, the tribunal decided to grant a final opportunity for the case to be heard on its merits.
In its decision, the ITAT stated that “substantial justice should prevail over procedural lapses,” noting that a litigant should not suffer due to non-appearance if their case warrants consideration. The tribunal has instructed the CIT(A) to re-adjudicate the matter after providing Nayak a reasonable opportunity to be heard. Nayak has been directed to cooperate with the renewed proceedings, with a warning that failure to do so could result in another ex parte order.
