MARS THERAPEUTICS & CHEMICALS LIMITED,HYDERABAD vs. DY. COMMISSIONER OF INCOME TAX, CIRCLE-16(2), HYDERABAD

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ITA 1969/HYD/2018Status: DisposedITAT Hyderabad11 October 2019AY 2015-163 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found merit in the assessee's argument and remitted the matter back to the CIT(A). The CIT(A) was directed to admit the appeal and adjudicate the issues on merit after verifying the payment of admitted tax.

What were the facts?

The assessee's appeal was dismissed by the CIT(A) for non-payment of admitted tax. However, the assessee had paid the admitted tax before the appeal was heard by the CIT(A).

What were the issues?

Whether the CIT(A) was justified in dismissing the appeal for non-payment of admitted tax when the tax was paid before the hearing. Whether the matter should be remanded for fresh adjudication.

Which sections of the Income-tax Act were involved?

Section 249(4)(a)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCH “B”, HYDERABAD

Before: SMT. P. MADHAVI DEVI & SHRI A. MOHAN ALANKAMONY

Hearing: 11/09/2019Pronounced: 11/10/2019

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH “B”, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA No.1969/Hyd/2018 Assessment Year: 2015-16 Mars Therapeutics & Vs. Deputy Commissioner of Chemicals Limited, Income Tax-16(2), D.No.4-4/1/2, Dommara Hyderabad. Pochampally Village, Quthbullapur Mandal, Medchal Dist., Hyderabad-43. PAN: AABCM 3914 D (Appellant) (Respondent) Assessee by: Sri Ch. Harinath Rao Revenue by: Sri Y.V.S.T. Sai, CIT-DR Date of hearing: 11/09/2019 Date of pronouncement: 11/10/2019 ORDER PER A. MOHAN ALANKAMONY, AM.:

This appeal is filed by the assessee against the order of the Ld. CIT(A)-4, Hyderabad in appeal No. 10237/2017-18/ACIT, Cir- 16(2)/CIT(A)-4/Hyd/18-19, dated 26/7/2018 passed U/s. 144 r.w.s 250(6) of the Act for the assessment year 2015-16.

2.

At the outset, the Ld. AR submitted before us that the Ld. CIT (A) had dismissed the appeal because the assessee had not paid the

admitted tax. The Ld. AR further submitted that the assessee has paid the admitted tax subsequent to the passing of the assessment order U/s. 144 of the Act dated 26/12/2017 but before hearing of the case by the Ld. CIT (A) on the following dates: -

Sl Date of payment Challan No. Amount Rs. 1 12/06/2018 5,00,000 2 04/07/2018 5,00,000 3 17/07/2018 20,00,000 4 20/07/2018 14,00,000 5 26/07/2018 7,00,000 Total 51,00,000

3.

The Ld. AR argued stating that though the assessee had paid the admitted tax before the appeal was heard by Ld. CIT (A), the Ld. CIT (A) dismissed the appeal by virtue of section 249(4)(a) of the Act. The Ld. AR further pleaded that since the assessee has paid admitted tax the matter may be remitted back to the file of the Ld. CIT (A) with directions to admit the appeal and pass appropriate order as per merit and law. The Ld. DR did not raise serious objection for the same.

4.

We have heard the rival submission and find merit in the arguments advanced by the Ld. AR. Since the assessee claims to have paid the admitted tax on the dates mentioned hereinabove, we hereby remit the matter back to the file of Ld. CIT (A) with directions to admit

the appeal and adjudicate the issues involved in the appeal in accordance with merit and law after affording sufficient opportunity to the assessee of being heard subject to the verification of the claim made by the assessee for having paid the admitted tax. It is ordered accordingly.

5.

In the result, appeal of the assessee is allowed for statistical purposes as indicated hereinabove.

Pronounced in the open Court on 11th October, 2019.

Sd/- Sd/- (P. MADHAVI DEVI) (A. MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Dated: 11th October, 2019

OKK

Copy to:- 1) Mars Therapeutics & Chemicals Limited,D.No.4-4/1/2, Dommara Pochampally Village, Quthbullapur Mandal, Medchal Dist., Hyderabad-43. 2) DCIT-16(2), Hyderabad. 3) The CIT(A)-4, Hyderabad 4) The Pr. CIT-4, Hyderabad 5) The DR, ITAT, Hyderabad 6) Guard File

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