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Facts
The assessee, a non-filer, was subjected to a best judgment assessment under Section 144 for AY 2017-18, with income assessed at Rs. 18.25 Lacs based on bank account credits. The CIT(A) dismissed the assessee's appeal on the technical ground of non-deposit of advance tax as required by Section 249(4)(b). The assessee contended that they are an agriculturist and the deposits were mere book entries made by an agent for VISA purposes, having no income component.
Held
The Tribunal found that the liability to pay advance tax only arises in cases of taxable income. Therefore, it restored the appeal to the CIT(A) for a de novo adjudication on merits, specifically directing the CIT(A) to decide the case without raising the issue of advance tax payment. The assessee was instructed to present and prove their case before the CIT(A).
Key Issues
1. Whether an appeal can be dismissed solely due to non-payment of advance tax under Section 249(4)(b) without considering the merits of the case regarding the existence of taxable income. 2. Whether bank account credits in a non-filer's account, claimed by an agriculturist as book entries for VISA purposes, constitute taxable income.
Sections Cited
Section 144 of the Income Tax Act, Section 249(4)(b) of the Income Tax Act, Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963
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Income Tax Appellate Tribunal, ‘DB’, AMRITSAR BENCH, AMRITSAR
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI UDAYAN DAS GUPTA, JM
Manoj Kumar Aggarwal (Accountant Member) Aforesaid appeal by assessee for Assessment Year (AY) 1. 2017-18 arises out of an order of Ld. Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 28-12-2023 in the matter of an assessment framed by Ld. AO on best judgment basis u/s 144 of the Act on 10-12-2019. In the assessment order, Ld. AO assessed income at Rs.18.25 Lacs considering credit in bank accounts of the assessee. The assessee remained non-filer and non-compliant. The Ld. CIT(A), dismissed the appeal on the ground that the assessee did not deposited amount of advance tax as required u/s 249(4)(b). Aggrieved, the assessee is in further appeal before us.
In the written submissions, it has been stated that the assessee is an agriculturist and the deposits were made by his agent for VISA purposes. All the entries are said to be only book entries having no income component. The supporting documents, in that regard, have also been placed on record.
Considering the written submissions of Ld. AR, we deem it fit to restore the appeal back to the file of Ld. CIT(A) for de novo adjudication on merits without raising the issue of payment of advance tax since the liability to pay advance tax would arise only in a case where the assessee has taxable income. The assessee is directed to plead and prove its case forthwith.
The appeal stand allowed for statistical purposes. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. (UDAYAN DAS GUPTA) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 17/11/2025 आदेश की "ितिलिप अ"ेिषत /Copy of the Order forwarded to : 1. अपीलाथ"/Appellant
""थ"/Respondent 3. आयकरआयु"/CIT 4. िवभागीय"ितिनिध/DR 5. गाड"फाईल/GF