Income Tax Payable Fully Adjusted Against Refund for Subsequent AY: ITAT Condones Delay of 85 Days [Read Order]

The Pune Bench of Income Tax Appellate Tribunal (ITAT) condoned delay of 85 days and held that payment of income tax in Assessment Year (AY) 2022-23, considered as complete adjustment of return of income for year under appeal i.e AY 2017-18.

The assessee in the present case Shashi Structural Engineers Private Limited filed an appeal before the Commissioner of Income Tax (Appeals) [CIT (A)] which was dismissed on the preliminary issue of the assessee not having satisfied the conditions of Section 249(4) of the Income Tax Act,1961.

The  CIT(A) observed that the tax payable as on the date of filing of the return of income was Rs.53,38,200/- and the assessee had paid only a sum of Rs.29,98,181/- as self-assessment tax, on the basis of this it dismissed the appeal. Aggrived by the order the assessee filed an appeal before the Tribunal.

The Authorised Representative of the assessee Kishor Phadke, stated the fact that the assessee’s return for the A.Y. 2022-23  determining refund of Rs.1,03,68,414/-, and he presented the paper book before the bench showing the adjustment of refund for the A.Y. 2022-23 against the demand of the assessee for various years including the year under consideration.

Umesh Phade appeared as Departmental Representative.

The Bench comprising of R.S. Syal, Vice President and S.S. Viswanethra Ravi, Judicial Member considered the application for delay of 85 days and observed that a sum of Rs.69,74,612/- has been adjusted in respect of the assessment year under consideration against the refund for the A.Y. 2022-2023, which shows that the amount of tax payable by the assessee with reference to the returned income for the year in appeal, was duly paid.

The Tribunal referred the case of CIT Vs. K. Satish Kumar Singh, where it was held, “where tax is paid subsequently, the appeal which was earlier dismissed by the first appellate authority for violation of Section 249(4), gets revived “.

Hence, the amount of tax payable by the assessee with reference to the returned income for the year under consideration stands fully adjusted against the refund for the A.Y. 2022-23. Thus set aside the order of CIT(A) and allowed the appeal of assessee.

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