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Facts
The assessee failed to file an income tax return for AY 2018-19 despite having financial transactions. The Assessing Officer added cash deposits as unexplained income. The CIT(A) dismissed the appeal due to non-payment of advance tax as per section 249(4)(b).
Held
The Tribunal held that the CIT(A) did not properly consider the documents filed by the assessee and dismissed the appeal without examining the merits. The Tribunal condoned a delay in filing the appeal.
Key Issues
Whether the CIT(A) erred in dismissing the appeal without considering the merits and whether the assessee's claim of having no tax liability due to low income is valid.
Sections Cited
250 of the Income Tax Act, 139 of the Income Tax Act, 148 of the Income Tax Act, 68 of the Income Tax Act, 249(4)(b) of the Income Tax Act
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Income Tax Appellate Tribunal, “PATNA BENCH, PATNA
Before: Shri Sonjoy Sarma & Shri Sanjay Awasthi
Assessment Year: 2018-19 Raj Kishor Prasad………….. ………...…..…………………....Appellant Station Road, Harnaut, Nalanda, Bihar – 803110. [PAN: BPKPP0668B] vs. Assessment Unit, Income Tax Department............................…..…..... Respondent Appearances by: Shri Ajay Kr. Rastogi, AR, appeared on behalf of the appellant. Shri Ashwani Kr. Singal, Sr. DR, appeared on behalf of the Respondent. Date of concluding the hearing : January 08, 2025 Date of pronouncing the order : January 13, 2025 आदेश / ORDER
Per Sonjoy Sarma, Judicial Member:
The present appeal has been preferred by the assessee against the order dated 12.01.2024 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’).
At the outset, the Registry has informed that there is a delay of 16 days in filing the appeal. The assessee filed an application for condonation of delay stating reasons for such delay. After considering the application, we find reasonable cause therein. We, therefore, condone the delay in filing the appeal and adjudicate the appeal on merits of the case. 3. Brief facts of the case are that an information was received from the INSIGHT portal which suggested that the income chargeable to tax has escaped assessment in the case of the assessee for the assessment Assessment Year: 2018-19 Raj Kishor Prasad year 2018-19. The Assessing Officer noticed that despite having financial transactions, no return of income was filed by the assessee for the relevant assessment year neither u/s 139 of the Act nor in response to notice u/s 148 of the Act. Accordingly, the Assessing Officer made an addition of cash deposits at Rs.1,32,98,550/- as unexplained income u/s 68 of the Act.
Aggrieved by the above order, the assessee went in appeal before the ld. CIT(A) where the ld. CIT(A) dismissed the appeal of the assessee stating that as per provisions of section 249(4)(b) of the Act, it is mandatory to require to pay an amount equal to the amount of advance tax which was payable by the assessee if no return of income has been filed. Since the assessee did not able to file return of income, therefore, the ld. CIT(A) on this count only dismissed the appeal of the assessee.
Dissatisfied, the assessee is in appeal before this Tribunal raising various grounds. However, the main contention of the assessee is that the assessee is an individual and the income of the assessee during the relevant assessment year was only Rs.2,40,983/- which is below maximum taxable limit chargeable to tax. The ld. AR therefore has stated that the assessee did not file the return as there was no tax liability upon the assessee. He prayed that the matter may be remanded back to the file of the ld. CIT(A) with a direction to reexamine the issue on merits.
On the other hand, the ld. DR did not object to the above prayer made by the assessee. However, he stated that the assessee has failed to satisfy before the ld. CIT(A) regarding the non-payment of tax. Therefore, he stated that the appeal of the assessee may be dismissed.
We, after considering the rival submissions and reviewing the documents available on record, find that the ld. CIT(A) has not properly Assessment Year: 2018-19 Raj Kishor Prasad considered the documents filed by the assessee and dismissed the appeal of the assessee without entering into merits of the case. We, therefore, in the interest of natural justice and fair play, deem it necessary to provide the assessee with an opportunity to submit the required or relevant documents to substantiate his claim before the ld. CIT(A). Accordingly, we remand the issue to the file of the ld. CIT(A) for fresh adjudication. The assessee is directed that he will file necessary application before the ld. CIT(A) in order to satisfy that there is no tax liability as claimed by the Assessing Officer in his assessment order. The ld. CIT(A) is also directed to re-examine the submissions and documents of the assessee and pass a fresh order in accordance with law.
In terms of the above, the appeal of the assessee is allowed for statistical purposes.
Kolkata, the 13th January, 2025.
Sd/- Sd/- [Sanjay Awasthi] [Sonjoy Sarma] Accountant Member Judicial Member Dated: 13.01.2025. RS Copy of the order forwarded to: 1. Raj Kishor Prasad 2. Assessment Unit, Income Tax Department 3.CIT (A)- 4. CIT- , 5. CIT(DR),