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Facts
The assessee deposited Rs. 1.23 crore in Indusind Bank in FY 2018-19 but did not file an income tax return. The AO completed an assessment under Sections 147 r.w.s. 144 of the Income Tax Act for a total income of Rs. 1,23,27,600. The CIT(A) dismissed the assessee's appeal, refusing to admit it due to non-filing of return, non-payment of advance tax, and violation of Section 249(4)(b) of the Act.
Held
The Tribunal noted the assessee's submission of a profit and loss account and computation showing a total income of Rs. 3,25,600 with tax payable of Rs. 3,250. The matter was remanded back to the CIT(A) for admission of the appeal and decision on merits, directing the assessee to provide all documentary evidence, cooperate, and pay the admitted tax of Rs. 3,250 with interest. A reasonable opportunity of being heard is to be provided to the assessee.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal without merits due to non-filing of return and non-payment of advance tax, and whether the assessee should be granted an opportunity to present their case and explain compliance with Section 249(4)(b).
Sections Cited
Section 250, Section 147, Section 144, Section 249(4)(b), Section 210, Section 208, Section 87A, Section 234A, Section 234F, Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963
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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. MANOJ KUMAR AGGARWAL & SH. UDAYAN DASGUPTA
This appeal is filed by the assessee against the order of the ld. CIT (A) NFAC, Delhi dated 24.10.2024 passed u/s 250 of the Income Tax Act, 1961 which has emanated from the order of the AO, NFAC passed u/s 147 r.w.s. 144 of the Act, 1961 dated 08.03.2024. issue that the appeal of the assessee has been dismissed by the ld. CIT(A) by refusing to admit the said appeal for violation of provisions of section 249(4)(b) of the Act, without allowing any opportunity to the assessee to explain his case.
Brief facts emerging from records are that the assessee has deposited an amount of Rs.1.23 cores in Indusind Bank during the financial year 2018-19 (relevant to the year under appeal). In absence of any return on record, proceedings were initiated u/s 148 of the Act (after complying with necessary procedure) and in absence of any response from the assessee, the assessment was completed on a total income of Rs.1,23,27,600/- u/s 147 r.w.s. 144 of the Act.
The matter carried in appeal has been dismissed by the ld. first appellate authority on the grounds that no return of income has been filed and no advance tax has been paid and incorrect information has been stated in Form No. 35 (row no. 9)
(where the assessee has offered comments as not applicable) thereby refusing to admit the appeal for decision on merits for violation of provisions of section 249(4)(b) of the Act.
Before the Tribunal, the ld. AR of the assessee submitted that the assessee is a deed writer and as per the assessee’s own calculation no advance tax is payable and he further submitted that the payment of advance tax by the assessee is of his own
per the profit and loss account submitted is only Rs.3,25,600/- on which tax payable will be Rs.3,250/- (with interest). As such, he submits that in the instant case, the appeal should have been admitted by the ld. first appellate authority and had an opportunity being actually granted to the assessee in course of appellate proceedings, the assessee could have explained that there is no default u/s 208 (r.w.s. 210) of the Act and he prays for an opportunity of explaining his case before the ld. first appellate authority.
The ld. DR relied on the order of the ld. CIT(A).
We have heard the rival submissions and considered the materials on record and we find that the assessee has submitted a copy of the profit and loss account and a computation of income for the year under appeal which reflects his total income of Rs.3,25,600/- and tax payable at Rs.3,250/-. As per the assessee’s own computation no advance tax is payable u/s 210 of the Act but admitted tax payable is Rs.3,250/-, which is made a part of this order:
back to the files of the ld. CIT(A) for admission of the appeal and to decide the grounds contained in Form No. 35 on merits of the case. The assessee is also directed to file all documentary evidences and submissions in support of his contention and to fully cooperate in appellate proceedings. The assessee is also directed to make the payment of Rs.3,250/- being the admitted tax (along with applicable interest).
The assessee to be allowed reasonable opportunity of being heard.
We have not expressed any opinion on merits of the case.
In the result, the appeal filed by the assessee is allowed for statistical purpose.
Order pronounced in accordance with Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 as on 18.08.2025