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Facts
The assessee's appeal for assessment year 2018-2019 was dismissed in limine by the National Faceless Appeal Centre (NFAC) under section 249(4)(b) for alleged non-payment of advance tax. The NFAC did not decide the appeal on merits and its order lacked a clear indication of the advance tax liability or an opportunity to rectify the default.
Held
The Tribunal observed that the CIT(A)-NFAC had not provided an opportunity to the assessee regarding the alleged advance tax default. Therefore, in the interest of justice, the Tribunal restored the entire issue to the CIT(A)-NFAC for fresh adjudication on merits, allowing the assessee three opportunities to present their case.
Key Issues
Whether the lower appellate authority was justified in dismissing the appeal in limine without deciding on merits due to alleged non-payment of advance tax and without granting an opportunity to the assessee.
Sections Cited
147, 144, 249(4)(b)
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Income Tax Appellate Tribunal, MUMBAI “D” BENCH : MUMBAI
Before: SHRI SATBEER SINGH GODARA & SHRI GIRISH AGRAWAL
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI “D” BENCH : MUMBAI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA.No.2004/Mum./2024 Assessment Year 2018-2019 Mrs. Roshni Vishal Patel, The Income Tax Officer-4(4), 1501, Shree Rasraj Towers, 6th Floor, Ashar IT Park, Rokdiya Cross Lane, Pai vs. Road No.16Z, Wagle Industrial Nagar, Borivali (W), Estate, Thane – 400 604. Mumbai - 400 092. Maharashtra. Maharashtra. (Appellant) (Respondent) For Assessee : Shri Kirit Mehta For Revenue : Smt. Mahita Nair, Sr. DR Date of Hearing : 10.07.2024 Date of Pronouncement : 18.07.2024 ORDER PER SATBEER SINGH GODARA, J.M.
This assessee’s appeal, for assessment year 2018-2019, arises against the National Faceless Appeal Centre [in short the “NFAC”] Delhi’s Din and Order No. ITBA/NFAC/S/250/2023-24/ 1061240796(1) dated 21.02.2024, in proceedings u/s.147 r.w.s.144 of the Income Tax Act, 1961 (in short “the Act”).
2 ITA.No.2004/Mum./2024
Heard both the parties. Case file perused.
It emerges at the outset that the CIT(A)-NFAC’s lower appellate discussion has not decided the assessee’s appeal on merits since the same stands dismissed in limine u/sec.249(4)(b) of the Act for want of payment of advance tax. The CIT(A)-NFAC’s findings to this effect are in paras 3.1 to 4 at pages 3 to 5 of his order.
Faced with this situation, we invited learned DR’s attention to the fact that neither there is any clear-cut indication about the assessee’s advance tax liability in the impugned assessment year nor the CIT(A)-NFAC has afforded any opportunity to this effect for making good the alleged corresponding default. We deem it appropriate in the larger interest of justice in these peculiar facts and circumstances that the assessee’s instant sole substantive issue deserves to be restored back to the CIT(A)-NFAC for it’s afresh adjudication as per law in very terms. We further make it clear that once the assessee’s lower appeal is treated as admitted on the advance tax payment issue; it shall be her risk and responsibility to 3 ITA.No.2004/Mum./2024 plead and prove her case with all the relevant facts in consequential proceedings, within three effective opportunities of hearing. Ordered accordingly.
This assessee’s appeal is allowed for statistical purposes in above terms.
Order pronounced in the open Court on 18.07.2024