The Pune Bench of Income Tax Appellate Tribunal (ITAT)set aside the Commissioner of Income Tax(Appeals)[CIT(A)] order, which had dismissed the appeal under Section 249(4) of Income Tax Act,1961 for non-payment of advance tax, considering the assessee’s senior citizen status and health issues.
Hingora Ali Mohd Vali Mohd, appellant-assessee, appeal was dismissed by the CIT(A) under Section 249(4) for non-payment of advance tax.The paper book showed that the assessee paid ₹4,000 as advance tax on 30.12.2016 and ₹1,750 as self-assessment tax on 07.08.2017, with challans on record.
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Advance tax was based on estimated income for the financial year and had to be paid within that year. Various High Court rulings had noted that such estimates could be inaccurate, which is why provisions existed for interest on any shortfall or excess payment.
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The assessee did not file a return of income, leading to an assessment order under Section 144 on 27.12.2019. The case fell under Section 249(4)(b), but the proviso allowed the CIT(A) to admit the appeal for valid reasons. Being a senior citizen and unwell during the period, the assessee estimated and paid advance tax, though there was a shortfall, which was later paid.
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The two member bench comprising Vinay Bhamore (Judicial Member) and Dr.Dipak P.Ripote(Accountant Member) on considering these factors, the CIT(A)’s order was set aside, directing a fresh decision on merits after allowing the assessee to present necessary documents.
In result,the appeal filed by the assessee was allowed for statistical purposes.
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