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Facts
The assessee filed an appeal against an order by NFAC, Delhi, which was based on a re-assessment under section 147. The CIT(A) had dismissed the appeal citing Section 249(4) for non-payment of advance tax.
Held
The Tribunal held that since the assessee had not filed its return of income and claimed no taxable income, there was no obligation to pay advance tax. Consequently, Section 249(4) was not applicable.
Key Issues
Whether Section 249(4) is applicable when the assessee has not filed a return of income and claims no taxable income.
Sections Cited
147, 144, 249(4)
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Income Tax Appellate Tribunal, ‘C‘ BENCH
आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the assessee against order dated 30/01/2024 passed by NFAC, Delhi for the quantum of assessment passed u/s.147 r.w.s. 144.
Before us, ld. Counsel submitted that the ld. CIT(A) has erred by not admitting the appeal by invoking the provision of Section 249(4) on the ground that assessee has not made payment for advancement of tax. He pointed out that assessee Chandra Financial Services Pvt. Ltd had not filed its return of income and even the notice u/s.148 of re-assessment proceedings have not been done exparte due to non-service of notice. Thus, when assessee has not filed the return of income, there is no question of paying any advance tax. The claim of the assessee is that it has no income, therefore, there is no question of any payment of advance tax.
Since assessee has not filed the return of income and also claimed to have no taxable income then, there is no applicability of Section 249(4). A ccordingly, the matter is restored back to the file of the ld. CIT(A) to decide the issue on merits after admitting the appeal and in accordance with law after giving due opportunity of hearing to the assessee.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on 29th October, 2024.