Advance Tax Not Payable If Assessee is Above Age of 60 Years having No Business Income: ITAT [Read Order]

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the advance tax would not be payable by the assessee if he is above 60 years having no business income.

An information was received that the Assessee Vikram Singh,sold an immovable property during the FY 2009.The Assessee did not furnish return of income under Section 148 of the Income Tax Act. The Assessee had also not furnished PAN. The Assessee submitted that the land sold was agricultural land and was of ancestral nature. The Assessee the land did not fall in the definition of capital asset.

However, the assessment was completed under Section 147/144 of the Act holding that land sold was capital asset and that the Assessee had failed to submit ITR for Assessment Year 2010-11 and thus long-term capital gain was added to the income of the Assessee. The appeal was dismissed for non-compliance of mandatory provision of section 249(4) of the Income Tax Act.. 

Rajat Garg, on behalf of the assessee submitted that the Assessee was a Senior citizen and relying upon the relied on the provisions of section 207 of the Income Tax Act. and submitted that as the there was no liability for payment of advance tax the Assessee was not required to file the return of income, therefore, provision of section 249(4) of the Income Tax Act were not applicable.

Mrinal Kumar Dass, appeared on behalf of the revenue.

The Division Bench of G.S. Pannu (President) and Anubhav Sharma, (Judicial Member) set aside the impugned order and restored to the Commissioner of Income Tax Appeal (CIT(A)) to decide the question of applicability of section 249(4) of the Income Tax Act. on merits of claim of the assessee, after giving an opportunity of hearing to the Assessee observing that,

“Here no advance tax was payable as the assessee was over 60 years of age and not having any income from P&G and the assessee was not given an opportunity of being heard.”

To Read the full text of the Order CLICK HERE

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