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Facts
The assessee, a builder and developer, filed a 'Nil' income return. During a survey, they offered additional income of INR 2,40,00,000/-. Subsequently, they filed a revised return showing income of INR 2,38,16,740/-, but failed to pay self-assessment tax as required. The assessment order was passed at INR 5,61,96,744/-. The CIT(A) dismissed the appeal for non-payment of self-assessment tax.
Held
The Tribunal noted that the assessee has since made tax payments after the assessment order. The Tribunal set aside the CIT(A)'s order and directed them to verify the tax payments and then adjudicate the appeal on merits after providing an opportunity of being heard. Ground No. 1 was treated as allowed for statistical purposes, while others were dismissed as infructuous.
Key Issues
Whether the appeal should be admitted for hearing on merits when the assessee had not paid self-assessment tax as required, and whether the CIT(A) was justified in dismissing the appeal on this ground.
Sections Cited
250 of the Income Tax Act, 1961, 143(3) of the Income Tax Act, 1961, 147 of the Income Tax Act, 1961, 140A of the Income Tax Act, 1961, 133A of the Income Tax Act, 1961, 148 of the Income Tax Act, 1961, 249(4) of the Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “E” BENCH, MUMBAI
order : 09.12.2024 O R D E R [ Per Rahul Chaudhary, Judicial Member:
1. 1. The present appeal preferred by the Assessee is directed against the order, dated 30/09/2024, passed by the Commissioner of Income Tax (Appeals) – 51, Mumbai [hereinafter referred to as ‘the CIT(A)’] under Section 250 of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’] whereby the Ld. CIT(A) had dismissed the appeal against the Assessment Order, dated 27/03/2015, passed under Section 143(3) read with Section 147 of the Act for the Assessment Year 2011-12.
2. The Assessee has raised following grounds of appeal :
“1. The learned assessing officer erred in law and fact in stating Assessment Year 2011-2012 that the appellant had not paid the taxes due as per the return of income.
The learned assessing officer erred in adding Rs.3,23,00,000/- to the returned income of the appellant.
The learned assessing officer erred in disallowing expenses of Rs.1,00,000/- from the work-in-progress account of the appellant.
The learned assessing officer erred in not granting proper opportunity of being heard to the appellant.
The learned assessing officer erred in making the same addition of Rs.2,40,00,000/- twice in the appellants returned of income.” 3 The relevant facts as emerging from the record are that the Appellant is a company carrying on the business of builders and developers. The Appellant had filed return of income on 25/03/2013 declaring ‘Nil’ income. A survey action under Section 133A of the Act was carried out on 07/10/2013 at the business premises of the Appellant. During the course of the aforesaid survey the Appellant firm offered a sum of INR.2,40,00,000/- as additional income. Subsequently, notice under Section 148 of the Act was issued on 18/10/2013 and in response to the same, the Appellant filed return of income on 21/03/2014 declaring total income of INR.2,38,16,740/-. Admittedly, the Appellant had not paid the self- assessment tax of INR.43,59,370/- as per section 140A of the Act. Subsequently, Assessment under Section 143(3) read with Section 147 of the Act was framed on the Appellant vide order dated 27/03/2015 at assessed income of INR.5,61,96,744/- as against the returned income of INR.2,38,16,744/-.
4 Being aggrieved the Appellant preferred appeal before CIT(A) which was dismissed on the ground that the Appellant had failed to pay self assessment tax on the income declared in the return of income filed on 21/03/2014 in response to notice issued under Section 148 2 Assessment Year 2011-2012 of the Act. Therefore, the CIT(A) declined to admit the appeal in term of provision contained in Section 249(4) of the Act and the same was dismissed.
5 Now the Appellant has preferred the present appeal before the Tribunal.
6 The Learned Authorised Representative for the Appellant appearing before us, at the outset, submitted that the Appellant had made following payments after passing of the Assessment Order
(a) INR.45,00,000/- (31/03/2018) (b) INR.10,00,000/- (02/02/2018) (c) INR.15,00,000/- (01/08/2015) It was submitted that the above payments were reflected in Form 26AS placed at Page 30 of the Paper Book and were in addition to the payments made prior to the passing of the Assessment Order. It was submitted that since the Appellant has now made payment of taxes, an opportunity be granted to the Appellant to pursue the grounds of appeal raised before the CIT(A) on merits.
7 Replying to the above submissions, the Learned Departmental Representative submitted that the payment of taxes by the Appellant requires verification.
8 We have considered the rival submissions and perused the material on record. On perusal of Form 26AS we find that the factual averment made by the Appellant in respect of deposit of taxes is supported by entries contained in “Part C – Details of taxes paid (other than TDS or TCS)” of Form 26AS which are reproduced herein under:- Sr. Major Minor Tax Total Tax BSR Date of Challan No. Head Head Code Deposit Serial Number 1. 0021 400 45,00,000.00 45,00,000.00 0282611 31-Mar-2018 00033 2. 0021 400 10,00,000.00 10,00,000.00 0282611 02-Feb-2018 00014 3 Assessment Year 2011-2012
3. 0021 400 15,00,000.00 15,00,000.00 0350460 01-Aug-2015 00004 4. 0021 300 .00 .00 350460 28-Apr-2015 00003 5. 0021 300 10,00,000.00 10,00,000.00 0282611 28-Apr-2015 00010 6. 0021 300 20,00,000.00 20,00,000.00 0282611 06-Feb-2014 00001 9 In view of the above, we deem it appropriate to set aside the order, dated 30/09/2024, passed by the CIT(A) with the directions to verify the payment of self-assessment tax and thereafter, adjudicate the grounds raised in appeal by the Appellant before the CIT(A) as per law after granting the Appellant reasonable opportunity of being heard. The Appellant is directed to file all documents/details in support of the grounds raised before CIT(A). It is clarified that in case the Appellant fails to enter appearance before CIT(A) and/or to file requisite submissions/documents/details, the CIT(A) would be at liberty to adjudicate upon the grounds raised on merits on the basis of material on record.
10 In terms of paragraph 9 above, the Ground No.1 raised by the Appellant in the present appeal is treated as allowed for statistical purposes while all the other grounds raised by the Appellant are dismissed as having been rendered infructuous.
11 In result, the appeal preferred by the Assessee is allowed for statistical purposes.