Order
1. Heard the counsel for the parties.
2. For the nature of order we propose to pass, it is unnecessary to dilate on the factual matrix of the case or analyse the arguments advanced by both sides except to observe that we disagree with the approach of the High Court as well as the Income Tax Appellate Tribunal, Bangalore.
3. In view of rival submissions and the documents on which reliance has been placed by the respective parties, we would deem it appropriate to relegate the parties before the first appellate authority. Be it noted that one of the issues involved is about not extending opportunity to the appellant to cross-examine the witnesses relied upon by the assessing officer. If the Department wants to rely on their evidence, it may be necessary to provide opportunity of cross-examination of these witnesses to the appellant, which can be done by the first appellate authority itself, namely, the Commissioner of Income Tax (Appeals) I, Bangalore. We say so because both parties intend to rely on some additional documents and circumstances. The first appellate authority may reconsider the matter afresh on its own merits in accordance with law including by examining the additional material/circumstances to be produced by the parties. In other words, the entire matter will have to be considered by the first appellate authority afresh by giving fair opportunity to both sides to espouse their claim in the remanded appeal(s).
4. Resultantly, we set aside the impugned order of the High Court dated 18-9-2007 ITA No. 353 of 2001 as well as the order(s) dated 29-6-2001 and 23-8-2000 passed by the Income Tax Appellate Tribunal and the Commissioner of Income Tax (Appeals) I, Bangalore respectively and relegate the parties before the first appellate authority, namely, the Commissioner of Income Tax I, Bangalore for reconsideration of appeal(s) on its own merits in accordance with law as aforementioned. The appeal(s) be decided expeditiously.
5. The counsel for the appellant had invited our attention to communication(s) dated 21-1-2020 and 6-2-2020 issued by the Department vide DIN and Letter No. 1TBA/COM/F/172019-20/1024085523(1) calling upon the appellant to pay arrears of demand and attachment notice under Section 226(3) of the Income Tax Act.
6. We direct that the Department shall not give effect to the said communication(s) until the decision on the remanded appeal(s) by the Commissioner of Income Tax (Appeals) is rendered and abide by that decision.
7. The appeal(s) and pending applications are accordingly disposed of in the above terms.