TELANGANA: In the case of APR Jewellers Private Limited Versus The Commissioner of Income Tax Telangana High Court held that the CIT (A) is a quasi-judicial authority and is not bound to be authorized by the administrative circulars issued by the Central Board of Direct Taxes.
The division bench held by Justice Ujjal Bhuyan and Justice Surepalli Nanda has remanded the matter back to the CIT (A) for a fresh decision on the prayer for stay of the petitioner in accordance with law after complying with the principles of natural justice. The next date of hearing is on 22.04.2022
Advocate Challa Gunaranjan is the main counsel of the petitioner and Advocate K.Raji Reddy is from the respondent side.
The petitioner is an assessee under the Income Tax Act, 1961. For the assessment year 2017–18, the department passed an assessment order under Section 143(3) of the Income Tax Act, 1961, making certain additions under Section 69A of the Income Tax Act, 1961.
By the assessment order, against the returned income of the petitioner of Rs. 1,78,860.00, the assessed income of the petitioner was assessed at Rs. 1,50,03,952.
The court relied on the decision of the Supreme Court in the case of Principal Commissioner of Income Tax vs. L.G. Electronics India Private Ltd., in which it was observed that an administrative circular would not operate as a factor on the Commissioner since it is a quasi-judicial authority. The Supreme Court held that it would be open to the authorities on the facts of individual cases to grant deposit orders of a lesser amount than 20% pending appeal.
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