Two different proceedings arising out of same assessment should be disposed together to avoid multiplicity of proceedings and conflicting judicial opinion
ABCAUS Case Law Citation:
ABCAUS 3223 (2020) (01) ITAT
In the instant case appeal arose out of the order passed by the Assessing Officer under Section 154 of the Income-tax Act, 1961 (‘the Act’) for rectification.
The Assessing Officer levied tax under Section 234A of the Act in a proceeding under Section 154 and thereby enhanced the tax demand.
The assessee submitted that the appeal filed against the assessment order was still pending for disposal, therefore, the matter may be remitted back to the file of the CIT(Appeals) to dispose the present appeal also along with the appeal filed by the assessee against the assessment order.
The Tribunal observed that the appeal filed by the assessee against the assessment order was pending before another CIT(Appeals). Whereas the present proceeding arising out of Section 154 proceeding was disposed by the different CIT(Appeals).
The Tribunal opined that when two different proceedings arise out of the same assessment, the one officer has to dispose both the appeals in order to avoid multiplicity of proceedings and conflicting judicial opinion.
The Tribunal stated that when the original appeal was pending before one CIT(Appeals), the appeal arising out of Section 154 proceeding ought to have been posted before the same officer so that conflicting judicial opinion and multiplicity of proceedings can be avoided.
The Tribunal further stated that even though levy of interest under Section 234A of the Act is mandatory, it would depend upon the decision taken by the CIT(Appeals) in the appeal filed by the assessee against the assessment order.
Therefore, the Tribunal opined that the appeal arising out of the proceeding initiated under Section 154 of the Act has also to be heard by the CIT(Appeals) along with the appeal filed by the assessee against the assessment order.
In view of the above, the order of the CIT(Appeals) was set aside and the entire issue was remitted back to the file of the CIT(Appeals) with direction of necessary administrative steps to post the appeal before the same CIT(Appeals) who was handling the appeal filed by the assessee against the assessment order.
It was directed that the instant appeal as well as the appeal filed by the assessee against the assessment order shall be disposed of by the same officer in order to avoid multiplicity of proceedings and conflicting judicial opinion.
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