The Cuttack bench of the Income Tax Appellate Tribunal (ITAT) has imposed a cost of Rs. 5,000 on the assessee for non-compliance of the notice received through the Income Tax Business Application (ITBA).
The assessee, Subhag Projects Private Ltd has approached the Tribunal contending that the appeal of the assessee before the ld. CIT(A) was dismissed on account of non-prosecution. It was the submission that on account of Covid period, the assessee was unable to represent its matter properly before the ld. CIT(A). It was the prayer that the assessee may be granted another opportunity to represent its case before the ld. CIT(A).
It was contented on behalf of the department that if an opportunity is going to be granted to the assessee to represent his matter again before the ld. CIT(A) cost should be levied. It was the submission that the substantial time of the revenue is wasted on account of non-compliance.
A perusal of the order of the ld. CIT(A) shows that four opportunities have been granted to the assessee by issuing notices through ITBA System via e-Mail. It was submitted by the ld. AR that notices have been received but the assessee was unable to correspond with its counsel. This being so, we are of the opinion that the assessee should be granted another opportunity of being heard before the ld. CIT(A). This is however, subject to the levy of cost of Rs.5000/- (Rupees Five Thousand Only) payable under the head “Others” by the assessee before the AO and challan of the same be submitted to the ld.CIT(A). Thus, the issues in the appeal of the assessee are restored to the file of CIT(A) for readjudication after granting adequate opportunity of the assessee.
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