Income Tax Authorities should Charge Legitimate Taxes from Taxpayers: ITAT

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By Taxscan Team – On December 24, 2022 10:09 am

In a recent ruling while slamming the income tax department for ignoring the grievance of the assessee, the Income Tax Appellate Tribunal (ITAT), Kolkata bench has held that the income tax authorities should charge legitimate taxes from the taxpayers.

The assessee, M/s Kkalpana Plastic Ltd, contended that he was never served upon the second rectification order and that he came to know of the second rectification order only on receipt of demand notice dated 03.02.2020 and that all the correspondences were made under the impression and in response to the earlier rectification petition dated 23.01.2013.

On first appeal, the CIT(A) has dismissed the appeal observing that the assessee was aware of the second rectification order dated 30.07.2014. Whatever the case may be, it is apparent from the record that the assessee was neither served with earlier rectification order dated 11.06.2014 nor with the second rectification order dated 30.07.2014.

The assessee though continued to file various applications not only to the Assessing Officer but also to the CPGRAM portal till 04.04.2019, and thereafter, when he was served with the demand notice dated 03.02.2020, he filed the present appeal.

A bench of Shri Sanjay Garg, Judicial Member and Shri Rajesh Kumar, Accountant Member held that “the facts show that it is not a case where the assessee-appellant had remained negligent in persuing its remedy before the competent authority, rather it is a case of official apathy where the genuine grievance of the assessee has been overlooked, ignored and rejected and uncalled for demand was raised from the assessee. It has been held time and against that the Income Tax Authorities should charge legitimate taxes from the taxpayers.”

“In this case, not only the Assessing Officer but also the CIT(A) has failed to exercise jurisdiction vested with him. In view of this, the impugned order of the CIT(A) is quashed. The second rectification order dated 30.07.2014 is also hereby quashed and consequential demand raised by levying tax @20% on LTCG is also set aside,” the ITAT said.To Read the full text of the Order CLICK HERE

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