The Chandigarh bench of the Income Tax Appellate Tribunal directed the Commissioner of Income Tax (Appeal) [CIT(A)] to reexamine the grounds on which the assessee is liable to pay the advance tax and the reason why the assessee had not paid such tax. The tribunal held the CIT(A)’s order to be arbitrary, as it was made without deeper examination.
In the Instant case, the assessee, Mohinder Chauhan, failed to file the return of income (ITR) for the assessment year 2010-11 as required under section 139(1) of the Income Tax Act 1961. The department had information from the Non-filers Monitoring System(NMS) that the assessee was a non-filer and had a cash deposit of Rs. 18,41,810 in his account.
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The Assessing officer had sent multiple notices to the assessee for the reassessment. Still, there was no reply to those notices, and the only alternative available to the AO was to complete the assessment under Section 144 of the Act. The evaluation found a total assessed income of Rs.29,35,130 in the assessee’s account. Penalty proceedings were moved against the assessee as he had not filed the ITR.
The assessee was dissatisfied with the order of the AO and appealed before the CIT(A) under Section 250(6), where the commissioner held that since the assessee had not filed a return of income and had not paid an amount equal to the amount of advance tax which was payable by the appellant as provided in Section 249(4)(6) of the Act,
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
In an appeal before the tribunal, the Authorized Representative (AR) was absent on behalf of the assessee. The Departmental representative(DR) of the revenue prayed to uphold the order of the CIT(A). The Tribunal, examining all the material facts available on record, observed that the order of the CIT(A) is to be set aside and the case be remanded back to the CIT(A).
The Tribunal, consisting of Vikram Singh Yadav (Accountant Member) and Paresh M. Joshi(Judicial Member), directed the CIT(A) to call the assessee to show why it has not paid the advance tax as payable by the assessee and to examine whether the assessee is liable to pay the advance tax as per provisions of section 249(4)(6). The Tribunal directed the CIT(A) to consider any exemption request the assessee made under section 249(4). As a result, the appeal was allowed, and the CIT(A) order was set aside. The case was remanded back to the CIT(A).
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