LAXMI BABU DEBNATH ,PUNE vs. ITO WARD 7(1), PUNE

4. Without prejudice to Ground No.1 to 3 and on facts and circumstances prevailing in the case and as per the provisions of law, it be held that the assessment order passed by the Ld. AO. under section 144 is invalid. The assessment order be quashed. Addition made in pursuance of such assessment order be deleted. The appellant be granted just and proper relief in this respect.

5. Without prejudice to ground Nos. 1 to 4 and on facts and circumstances prevailing in the case and as per the provisions of the law, it be held that the the Ld. A.O. erred in not allowing the interest expense of Rs.15,96,870/- against the income earned on premature surrender of pension policy as per the provisions of Section 57 of the Act. The addition so made be deleted. The appellant be granted just and proper relief in this respect.

6. The Appellant prays to be allowed to add, amend, modify, rectify, delete, and raise any grounds of appeal at the time of hearing.”

& 536/PUN/2025 [A] Findings & Analysis : 2. We have heard both the parties and perused the records. In this case, ld.CIT(A) has not admitted the appeal of the Assessee for A.Y.2012-13 and A.Y.2013-14 vide separate orders dated 28.12.2024 and 27.01.2025. However, the Paragraph is identical in both the appeal orders. The relevant paragraph of ld.CIT(A)’s order is reproduced as under : “6. Since the appellant has not filed valid return of income as well as not paid an amount equal to the amount of advance tax which was payable by it, present appeal is not liable to be admitted. The appeal is infructuous and is, therefore, dismissed.”

2.1 Thus, ld.CIT(A) has not admitted the appeal filed by the Assessee against the order u/s.148 of the Act, on the ground that Assessee has not paid the taxes.

2.2 The Section 249(4) of the Income Tax Act, 1961 is reproduced here as under : 249. (1) ………….. (4) No appeal under this Chapter shall be admitted unless at the time of filing of the appeal,— (a) where a return has been filed by the assessee, the assessee has paid the tax due on the income returned by him; or & 536/PUN/2025 [A] (b) where no return has been filed by the assessee, the assessee has paid an amount equal to the amount of advance tax which was payable by him:

Provided that, in a case falling under clause (b) and on an application made by the appellant in this behalf, the Commissioner (Appeals) may, for any good and sufficient reason to be recorded in writing, exempt him from the operation of the provisions of that clause.” 2.3 Thus, Section 249(4) envisages two situations. In this case, ld.CIT(A) has stated that assessee has not filed Return of Income and not paid the taxes, therefore, invoked section 249(4)(b) of the Act. However, the Assessee has filed Return of Income for A.Y.2012-13 on 05.12.2019 electronically and paid the Tax of Rs.33,180/-. Similarly, for A.Y.2013-14 Assessee had filed Return of Income electronically on 05.12.2019 and paid the Tax of Rs.55,354/-. The Assessing Officer in the assessment order has also started the Computation of Income with Income shown as per Return of Income. The relevant part of the Assessment Order is reproduced here as under : COMPUTATION OF TOTAL INCOME Income shown as per ROI .. Rs.4,77,650/- Add: Income from other sources… Rs.33,98,231/- Less: Deduction allowed … Rs.30,00,000/- Income from other sources u/s.57 Rs.3,98,231/- Total assessed Income Rs.8,75,881/- & 536/PUN/2025 [A] 2.4 Thus, Assessee had filed Return of Income and paid the taxes on the total income shown in the Return of Income. Therefore, Assessee’s case falls under the Section 249(4)(a) of the Act. Thus, ld.CIT(A) has erred in not admitting the appeal of the assessee. Therefore, we direct ld.CIT(A) to admit the appeals filed by the assessee for A.Y.2012-13 and A.Y.2013-14 and adjudicate the grounds of appeal raised by the assessee on merits. Hence, the appeal is set-aside to ld.CIT(A) for denovo adjudication. The Assessee shall be provided opportunity of being heard. Assessee shall file necessary documents before the ld.CIT(A). Accordingly, Ground No.1 of the Assessee is allowed for statistical purpose.

2.5 Since we have set-aside the order of the ld.CIT(A) to ld.CIT(A) for denovo adjudication, we do not intend to comment on the merits of the grounds raised by the assessee. Accordingly, all the grounds are left open for adjudication by ld.CIT(A).

4. Since we have set-aside the order for A.Y.2012-13 to ld.CIT(A) for denovo adjudication, as the facts are identical we also & 536/PUN/2025 [A] set-aside this current appeal in order for A.Y.2013-14 to ld.CIT(A) for denovo adjudication. Accordingly, Grounds of appeal raised by the assessee are allowed for statistical purpose.