The Allahabad bench of the Income tax appellate tribunal has recently held that the assessee was not willing to remove the defect regarding the deficient appeal fee and hence the appeal of the assessee has been treated as not a valid appeal and liable to be dismissed.
In the above case assessee Society for Welfare and Advancement of Rural Generation filed an appeal before the tribunal along with deficient appeal fee. The assessee has paid only Rupees 500/- instead of appeal fee of Rupees 10,000/-Accordingly, defect notices were issued to the assessee.But no one can appear for the assessee .
As per the provisions of section 253(6)(c) of the Income Tax Act 1961 , if the total income of the assessee computed is more than Rs. 2 Lakh then assessee is required to pay an appeal fee equivalent to 1 percent of the assessed income subject to maximum of Rupees 10,000/-. In the case in hand, the income of the assessee has been assessed at Rupees 1,98,18,885/.
Therefore, the assessee was required to pay the appeal fee of Rs. 10,000/- as per section 253(6)(c) of the Income Tax Act 1961, but despite repeated defect notices issued to the assessee as per the directions of this Bench, neither the assessee has made up the deficiency of appeal fee nor any reply is filed.
After providing so much time for rectifying the defect in appeal filed by the assessee, the division bench of the ITAT comprising Vijay Pal Rao, (Judicial Member) and Ramit Kochar, (Accountant Member) dismissed the appeal .
The bench observed that “assessee was not willing to remove the defect regarding the deficient appeal fee and consequently the appeal of the assessee was treated as not a valid appeal and liable to be dismissed in limine”
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