Assessee had to undergo trauma of engaging counsel and paying substantial fees to defend case when Revenue has no case at all - Cost imposed on Commissioner and AO - ITAT
THE Income Tax Appellate Tribunal noticed that the Revenue had not only no case, but they did not know how to write the grounds of appeal.
For every ground, the appeal stated, On the facts and in the circumstances of the case, the Hon'ble CIT(A) is justified in law …
The Appellant Revenue was defending the order of the CIT(A) while filing an appeal against it. The Tribunal noticed that the appellant should have questioned whether the CIT(A) was justified or should have stated that the CIT(A) was not justified. The AO while filing the appeal actually supports the stand taken by the CIT(A).
The Tribunal noted that a lot of time of the Tribunal is wasted by the Commissioner authorizing appeal on frivolous issues and it was incumbent upon the Commissioner, as a supervisory authority, to admonish the AO for making an addition without basic understanding of legal position.
The Tribunal observed that on account of improper action on the part of the Commissioner of Income Tax as well as the AO, the assessee had to engage a counsel and incur substantial expenditure to defend its case. Therefore Tribunal awarded a token cost of Rs.5,000/- upon the Commissioner of Income tax who has given the authorisation and cost of Rs.10,000/- upon the AO who has filed this appeal. The said payment should be made to the assessee within one month from the date of receipt of the order. Registry is also directed to mark a copy to the Chairman, CBDT so that in future the Income Tax Commissioners, who are responsible for filing appeal before the Tribunal, would take proper care to scrutinise the issues before authorising the AO to file appeals before the Tribunal.
This order was delivered by the Tribunal on 13.06.2014. What is going to happen? See you soon in the High Court.