Calcutta HC Quashes Conditional ITAT Remand

The Calcutta High Court partly allowed the assessee's appeal by holding that the ITAT exceeded its jurisdiction in directing that failure to deposit ₹1 lakh as costs would automatically revive and confirm an ex parte order of the CIT(A). 

The Court ruled that once the Tribunal found a breach of natural justice, the matter had to be restored for fresh adjudication without subjecting the statutory right of appeal to a coercive monetary condition. The cost was reduced to ₹25,000 and the automatic default clause was quashed.