CIT,Kolkata-III Vs Indian Aluminium Co Ltd (Calcutta High Court)
Date- 5th January 2023
Sub- Whether ITAT can pass an order in any manner it likes?

The Division bench of Calcutta High Court in this case was considering appeal of both the department and assessee arising out of order of Kolkata ITAT when several substantial question of law were pleaded by both the sides. However, in an unusual move, the court noted that even though the order of the ITAT runs into 24 pages and thus gives an impression that it is a detailed and reasoned order , however, on a closure scrutiny the court found that the Tribunal has abrogated its responsibility in its entirety which is heavily cast upon the learned Tribunal being the last fact- finding authority in the hierarchy of authorities. This was because the ITAT had adopted the findings of CIT(A) as its own findings. Moreover even though it was recorded in the order that the ITAT had heard the submissions of assessee and department but nothing in this regard was recorded in the order. Moreover all the grounds were dealt with in an identical manner as appeared from the order. The court also noted that In fact, the order of the learned Tribunal is a classical example of as to how an order should not be drafted. Thus the order of the tribunal was set aside to be passed again.

This is classic example of ITAT resorting to copy and paste order which was rightly set aside by the Court, though leading to wastage of time and money.

Ramesh Patodia
08-01-2023.