KRISHNASAMY MARUTHUPANDIAN,VIRUDHUNAGAR vs. ITO, CORP WARD 4, MADURAI

This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi in Order No.ITBA/NFAC/S/250/2023- 24/1058168632 (1) dated 23.11.2023. The assessment was framed by the Addl./Joint/Deputy/Asst. Commissioner of Income Tax/Income Tax Officer, National Faceless Assessment Centre, Delhi

The only issue in this appeal of assessee is against the order of CIT(A)-NFAC confirming the action of AO in adding the credits in the bank account amounting to Rs.7,72,83,031/- as unexplained money u/s.69A of the Act by holding that the assessee’s appeal is dismissed as un-admitted and infructuous for the reason that the assessee has not paid an amount equal to the amount of advance tax in term of section 249(4)(b) of the Act.

Briefly stated facts are that the assessee has not filed his return of income and accordingly, notice u/s.148 r.w.s. 147 of the Act was issued and assessment was framed ex-parte u/s.147 r.w.s. 144B of the Act of the Act by the AO vide order dated 19.03.2022 by adding the credits deposited in the assessee’s bank account amounting to Rs.7,72,83,031/-. Aggrieved, assessee preferred appeal before CIT(A).

The CIT(A) dismissed the appeal as unadmitted by giving the reason that the assessee has not paid an amount equal to the amount of advance tax which was payable by him in term of section 249(4)(b) of the Act. The CIT(A)-NFAC observed as under:-

We have heard rival contentions and gone through facts and circumstances of the case. We noted that the assessee before CIT(A) contended that the assessee’s total income for the impugned assessment year 2013-14 was less than the exemption limit of Rs.2,00,000/- and there is no liability for payment of advance tax. We noted that this fact is not considered by CIT(A)-NFAC and even, the CIT(A)-NFAC has to give a finding in term of proviso to section 249(4)(b) of the Act, wherein the assessee can adduce good and sufficient reason for not paying advance tax. The relevant proviso to section 249(4)(b) reads as under:- (4) No appeal under this Chapter shall be admitted unless at the time of filing of the appeal,— (a) where a return has been filed by the assessee, the assessee has paid the tax due on the income returned by him; or (b) where no return has been filed by the assessee, the assessee has paid an amount equal to the amount of advance tax which was payable by him: Provided that, in a case falling under clause (b) and on an application made by the appellant in this behalf, the Commissioner (Appeals) may, for any good and sufficient reason to be recorded in writing, exempt him from the operation of the provisions of that clause.

In the result, the appeal filed by the assessee is allowed for statistical purposes.