SHASHI STRUCTURAL ENGINEERS PRIVATE LIMITED,PUNE vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(1), PUNE

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ITA 716/PUN/2023Status: DisposedITAT Pune01 August 2023AY 2017-184 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that if the tax liability is subsequently paid, an appeal dismissed for violation of Section 249(4) gets revived. Therefore, the CIT(A)'s order was set aside, and the case was remanded for a decision on merits.

What were the facts?

The assessee's appeal before the CIT(A) was dismissed for not meeting the conditions of Section 249(4) of the Income-tax Act, as the self-assessment tax paid was less than the tax payable. However, subsequent adjustments of a refund from AY 2022-23 against the demand for the year under appeal settled the tax liability.

What were the issues?

Whether an appeal dismissed for non-compliance with Section 249(4) can be revived if the tax liability is subsequently paid? Whether the CIT(A) should decide the appeal on merits after the tax liability is settled?

Which sections of the Income-tax Act were involved?

Section 249(4),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH, ‘B’ PUNE

Before: SHRI R.S. SYAL & SHRI S.S.VISWANETHRA RAVI

For Appellant: Shri Kishor Phadke
For Respondent: Shri Umesh Phade

आदेश / ORDER

PER R.S. SYAL, VP :

1.

This appeal by the assessee is directed against the order dt. 21-01-2023 passed by the CIT(A) in National Faceless Appeal Centre (NFAC) u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2017-18.

2.

The appeal is time barred by 85 days. The assessee has filed an affidavit explaining the reasons for the delay. We are satisfied with the reasons so stated. Therefore, the delay is condoned and the appeal is admitted for disposal on merits.

Shashi Structural Engineers Private Limited

3.

We have heard both the sides and gone through the relevant material on record. Shorn off unnecessary details, it is seen that the assessee filed appeal before the ld. CIT(A) which was dismissed on the preliminary issue of the assessee not having satisfied the conditions of section 249(4) of the Act. The ld. CIT(A) observed that the tax payable as on the date of filing of the return of income was Rs.53,38,200/- and the assessee had paid only a sum of Rs.29,98,181/- as self-assessment tax. The ld. AR has brought to our notice the fact of the assessee’s return for the A.Y. 2022-23 having been processed on 14-04-2023 determining refund of Rs.1,03,68,414/-. Our attention has further been invited towards pages 66, 68 and 69 of the paper book showing the adjustment of refund for the A.Y. 2022-23 against the demand of the assessee for various years including the year under consideration. A sum of Rs.69,74,612/- has been adjusted in respect of the assessment year under consideration against the refund for the A.Y. 2022-213. This shows that the amount of tax payable by the assessee with reference to the returned income for the year in appeal, now stands duly paid.

The Hon’ble Karnataka High Court in CIT Vs. K. Satish Kumar Singh (2012) 02 KAR CK 0004 has held that where tax is paid subsequently, the appeal which was earlier dismissed by the first appellate authority for violation of section 249(4), gets revived. In Shashi Structural Engineers Private Limited view of the admitted factual position that the amount of tax payable by the assessee with reference to the returned income for the year under consideration now stands fully adjusted against the refund for the A.Y. 2022-23, we are satisfied that the assessee deserves disposal of its appeal on merits. We, therefore, set-aside the impugned order and direct the ld. CIT(A) to pass the order on merits of the appeal. Needless to say, the assessee will be allowed an opportunity of hearing.

4.

In the result, the appeal is allowed for statistical purposes.

Order pronounced in the Open Court on 01st August, 2023.

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