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Facts
The assessee, an Association of Persons, did not file its Income Tax Return for A.Y. 2020-21. Subsequently, assessment proceedings were initiated u/s 147, leading to an income assessment of Rs.3,16,93,567/- based on information regarding cash deposits, time deposits, and TDS. The assessee's appeal before the CIT(A) was dismissed in limine due to non-deposit of advance tax as per section 249(4)(b) of the Act.
Held
The Tribunal observed that in the absence of details regarding the assessee's income for the preceding A.Y. 2019-10, the advance tax liability could not be quantified, thus the CIT(A) should have adjudicated the case on its merits. Consequently, the Tribunal restored the issues back to the file of the CIT(A) for fresh adjudication on merits under section 250(6) of the Act, after providing the assessee a reasonable opportunity of hearing.
Key Issues
Whether the CIT(A) was correct in dismissing the appeal for non-payment of advance tax without a clear quantification of the liability, and if the matter should be restored for adjudication on merits.
Sections Cited
147, 144, 144B, 249(4)(b), 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “B”, PUNE
Before: DR.MANISH BORAD & MS. ASTHA CHANDRA
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee pertaining to A.Y. 2020-21 is directed against the order dated 11.12.2025 framed by National Faceless Appeal Centre, Delhi arising out of Assessment Order dated 13.12.2024 passed u/s.147 r.w.s.144 r.w.s.144B of the Income Tax Act, 1961 (in short ‘the Act’).
When the case called for, none appeared on behalf of the assessee despite due service of notice of hearing. With the assistance of ld. Departmental Representative and available records, we proceed to adjudicate the appeal exparte qua the assessee.
We have heard the ld. DR and perused the record placed before us. We observe that the assessee is Association of Persons and did not file the return of income for A.Y. 2020-21. Based on certain information about cash deposit, time deposit and TDS, assessment proceedings u/s.147 r.w.s.144 r.w.s.144B of the Act have been carried out and income assessed at Rs.3,16,93,567/-. Assessee preferred appeal before ld.CIT(A) but the same has been dismissed in limine for non deposit of advance tax as referred in section 249(4)(b) of the Act. We note that ld.CIT(A) in para 3.5 of the impugned order has referred to the word “Not applicable” mentioned in Sl.No.9 of Form 35 and has held that the assessee was supposed to make payment equal to the amount of advance tax payable on its income. We find that in absence of any detail of the income of the preceding A.Y. 2019-10, there cannot be any quantification of advance tax liability and ld.CIT(A) ought to have adjudicated on merits of the case.
Under these facts and circumstances, we deem it appropriate to restore the issues raised in the instant appeal to the file of ld.CIT(A) for necessary adjudication on merits as contemplated u/s.250(6) of the Act and then decide in accordance with law after giving reasonable opportunity of hearing to the assessee. Assessee is also directed to remain vigilant and make satisfactory compliance to the notice(s) of hearing issued by ld.CIT(A) and should refrain from taking adjournments unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 16th day of February, 2026.