Case Law Details
Karnataka Sangha Vs ITO (ITAT Mumbai)
Introduction: The case of Karnataka Sangha Vs ITO saw the Income Tax Appellate Tribunal (ITAT), Mumbai, making a noteworthy ruling that the National Faceless Appeal Centre (NFAC) cannot adjudicate appeals that have been previously disposed of by the Commissioner of Income Tax (Appeals) (CIT(A)). In addition, the ITAT ordered the Department to pay the cost incurred by the appellant due to the duplication of appeals.
Analysis: In this case, the appellant, Karnataka Sangha, had previously had its appeal for Assessment Year 2013-14 adjudicated and allowed by the CIT(A). Despite this, the appeal was taken up once more by the CIT(A) in an ex-parte proceeding. The ITAT noted that this duplication of proceedings not only caused unnecessary inconvenience but also imposed a financial burden on the appellant. Recognising this as an example of the Department’s negligence, the ITAT ruled in favour of Karnataka Sangha, stating that there was no cause for a second order in the same appeal. As a remedy, it ordered the Department to cover the appellant’s litigation costs amounting to Rs. 10,000/-.
Conclusion: The ITAT Mumbai’s ruling in the case of Karnataka Sangha Vs ITO sends a strong message about the importance of ensuring efficient and fair handling of appeals. By ruling that the NFAC cannot adjudicate appeals already disposed of by the CIT(A), and by ordering the Department to pay the cost due to the duplication of proceedings, the tribunal has set a significant precedent for future cases.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
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