TMI Blog2012 (6) TMI 819X X X X Extracts X X X X X X X X Extracts X X X X ..... eturned incomes at the time of filing the appeals before the CIT(A) in terms of provisions of section 249(4)(a) of the I.T. Act, and therefore, the CIT(A) dismissed the appeals in limine. 3. Aggrieved by the orders of the CIT(A), the assessees are in appeal before the ITAT raising the following grounds of appeal, which are common in nature in all the appeals under consideration:- 1. The order of the CIT(A) in rejecting the appeal filed by the appellant u/s 249(4) of the Income-tax Act, is wholly unsustainable both on facts and in law. 2. The learned CIT(A) has failed to note that the appellant has paid the admitted tax on the returned income as found and noted by the CIT(A) at para 6.3 of his own order and therefore erred in dismissing the appeal in limine . 3. The appellant prays that the admitted tax having been paid much before the disposal of the appeal, the matter be restored to the CIT(A) for adjudication on merits. 4. We have heard the arguments of both the parties and perused the record as well as gone through the orders of the authorities below. The learned counsel for the assessee has filed a statement, in a tabular form, wherein giving the details of am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10508126 23.3.11 2266141 10.4.11 227744267 5 ITA 525/H/12 25/01/2012 23099608 6108984 11/04/12 26.10.10 7350550 21.2.11 3262218 16.3.11 36113698 28.3.11 10188332 3.6.11 63023782 6 ITA 526/H/12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 25/01/2012 21773295 4906756 11/04/12 21.2.11 14700000 3.6.11 2166539 10.4.12 21773295 11 ITA 531/H/12 25/01/2012 22540136 5000000 11/04/12 21.2.11 7797299 16.3.11 7500000 30.6.11 2242837 10.4.12 22540136 12 ITA 532/H/12 25/01 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on returned income is stated to be the absence of proper advice by the Chartered Accountant of the assessee. 7. It is an undisputed proposition of law that appeal is a continuation of the original proceedings and right of appeal is not an inherent right but it is a statutory right. It is open to the legislature to give or not to give a right of appeal against decisions made by authorities. The right of appeal wherever conferred by statute has to be exercised strictly in conformity with the statutory provisions, which create it. If the statute put any restrictions then, such right would be available along with such restrictions. It is also not disputed before us that assessee had made the payment of agreed tax during the pendency of these appeals. Before embarking upon the jurisdiction of the Tribunal whether these appeals can be restored back to the CIT(A) or not, it is salutary to take note of sub-sections (3) and (4) of section 249 and sub-section (1) of section 254 because these provisions have direct bearing on the controversy : Section 249(3) : The CIT(A) may admit an appeal after the expiration of the said period if he is satisfied that the appellant had sufficient ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tively as against the amount of ₹ 65,700 and ₹ 93,564. The assessee challenged this levy of penalty before the CIT(A). The learned CIT(A) quashed the penalty on the ground that the AO levied the penalty contrary to the provisions of Section 271(1). The matter further travelled to the Tribunal. The Tribunal has also dismissed the appeal of the Department by confirming the order of the CIT(A) on the ground that Tribunal has no power to enhance the penalty. In such a situation, it can do nothing except affirming the order of the CIT(A). Ultimately, the matter went up before the Hon'ble Supreme Court. The Hon'ble. Supreme Court has observed as under while elaborating the scope of expression pass such orders thereon as it thinks fit. : The expression as it thinks fit is, wide enough to including the power of remand to the authority competent to make the requisite order in accordance with law in such a case even though the Tribunal itself could not have made the order enhancing the amount of penalty. The power of the AAC under Section 251(1)(b) includes the power even to enhance the penalty subject to the requirement of Subsection (2) of Section 251 of a reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsense justice. Rules of natural justice are not codified canons. But they are principles ingrained into the conscience of man. Natural justice is the administration of justice in a commonsense liberal way. Justice is based substantially on natural ideals and human values. The administration of justice is to be freed from the narrow and restricted considerations which are usually associated with a formulated law involving linguistic technicalities and grammatical niceties. It is the substance of justice which has to determine its form. 12. The expression, 'natural justice and legal justice' do not present a water-tight classification. It is the substance of justice which is to be secured by both, and whenever legal justice fails to achieve this solemn purpose, natural justice is called in aid of legal justice. Natural justice relieves legal justice from unnecessary technicality, grammatical pedantry or logical prevarication. It supplies the omissions of a formulated law. 13. The adherence to principle of natural justice as recognized by all civilized states is of supreme importance when a quasijudicial body embarks on determining disputes between the parties. 14. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the ground that decision given by the first appellate authority was not one under Section 250 of the Act and, therefore, no appeal would lie to the Tribunal and the Tribunal has no jurisdiction under Section 253 for setting aside the order of first appellate authority and directing the first appellate authority to decide the issue afresh on merit. The Hon'ble High Court rejected the contention of the Revenue and upheld the order of the Tribunal. While doing so, the Hon'ble High Court at p. 176 observed as under: On the aforesaid analysis, it has to be held that the order of the AAC dismissing the appeals for non-compliance with Section 249(4) of the Act came within the ambit of Section 250 of the Act and was appealable before the Tribunal under Section 253 of the Act. The Tribunal, therefore, committed no illegality in entertaining the appeals and in condoning the delay on being satisfied, on the facts and circumstances of the case, that there was sufficient cause for the assessee's failure to comply with Section 249(4) of the Act and in remitting the cases to the first appellate forum for disposal on merits. Accordingly, the question referred is answered in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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