ITAT Orders Mandatory Requirements for Non-Resident Companies

On 18th May 2020 Income Tax Appellate Tribunal (ITAT), Delhi bench Pronounced an Order that when a non-resident company represents an appeal in front of Tribunal, then the memo needs to be signed and verified by the same person who is is empowered through a Power of Attorney from the same Company to verify the ITR as stated in section 140(c) of the Income Tax Act, 1961 Get to know complete guide of TDS provisions under income tax act 1961 at here. Also, we include several topics as TDS returns, TDS due dates, penalty and more..

The Appeal was made by a UK Company who filed an appeal signed by Mr. Alan Wells an authorized signatory on its behalf. The appeal is dismissed due to the following statements of various rules and provisions.

• As per the provisions of section 253 (6) of the act “appeal to the appellate tribunal need to be filed in the prescribed form and it also needs to be verified in the prescribed manner”.
• Meanwhile, rule 47 (1) of The Income Tax Rules A simple way to understand all major changes under rebates and deductions in income tax rules for the FY 2020-21 (AY 2021-22). Also, we included penalty charges if ITR filing missed. Read more 1962 also clarifies that “the appeal shall be signed by the persons specified in sub-rule 3 of rule 45”.
• Additionally, As per the sub-rule, “the form of appeal shall be verified by the person who is authorized to verify the return of income under section 140 of the act as applicable to the assessee”.
• According to the provisions of section 140(c) of the act, “the first proviso says that where a company is not a resident in India, the return may be verified by a person who holds a valid power of attorney from such company to do so”.

The Tribunal dismissed the appeal and said that “according to the provisions of section 140(c) of the act, the first proviso says that where the company is not a resident in India, the return may be verified by a person who holds a valid power of attorney from such company to do so. According to page number 225 of the appeal set filed before us, Mr. Alan wells is only authorized to sign and verify the documents for filing of appeal before the coordinate bench. Therefore, it is not clear whether Mr. Alan Wells was holding a valid power of attorney from such a company to verify the return of income of the assessee as provided us 140(c) of the Act or not. As this information is not available on record, we dismiss this appeal in Limine.”