BPTP Limited
Vs
Principal Commissioner of Income Tax
16th July 2018
ITAT’s unreasoned order, whereby various appeals of the assessee were consolidated without sending such notice to the assessee, quashed by Delhi High Court
The assessee is aggrieved by the order of ITAT consolidating 13 appeals pending before different Benches. The assessee referred to the application of CIT requesting for consolidating of the appeals and stated that these applications did not disclose any reason as to why consolidation of all appeals, which were pending for a long time and were adjourned at the behest of the revenue by various benches and why those should be consolidated and listed before one bench. The assessee submitted that the Petitioner contends that the procedure adopted is not curious but contrary to the principles enunciated in the ruling of Olympia Paper & Stationer Stores vs. Assistant Commissioner of Income Tax, (63 ITD 148), which was approved in Dr. Prannoy Roy vs. The Deputy Commissioner of Income Tax & Ors, (W.P. (C) No. 4742/2018, decided on 04-05-2018).
High Court observed that it was an admitted fact that ITAT did not give any notice to the assessee before issuing the consolidation order. Apparently, all these appeals preferred by the appellant were being listed and heard repeatedly by different Benches and the ground of adjournment was that the appeals would be consolidated. High Court stated that given these circumstances, the Tribunal ought to have at least followed the paper procedure, laid down in Dr. Prannoy Roy (supra) and even enunciated by its previous order in Olympia Paper & Stationery Stores (supra). Firstly, it should have given adequate notice to the assessee on the issue of consolidation and secondly, if the Revenue’s request is found feasible and reasonable, indicate brief reason as to why the consolidation was essential. The failure of the ITAT to confirm to salient features vitiates its order.
High Court, thus quashed the ITAT order consolidating all the appeals and stated that in case the Revenue wishes to consolidate all these appeals, it should move a proper comprehensive application before the ITAT, serving a copy in advance to the assessee. High Court further directed the ITAT to issue a notice to the assessee before agreeing on the application and after considering the submission of both the parties, pass a reasoned order.
High Court, thus ruled in favour of the assessee.
© 2018 CA Chandan Agarwal. All rights reserved.