Narottambhai Chhotubhai Patel Vs ITO (ITAT Surat)
Appeal Cannot Be Dismissed in Limine u/s 249(4)(b) Without Examining Advance Tax Liability
The Surat Bench of the Income Tax Appellate Tribunal set aside the order of the CIT(A), NFAC, which had dismissed the assessee’s appeal in limine under section 249(4)(b) for AY 2015-16 on the ground of non-payment of advance tax.
The Tribunal held that the CIT(A) failed to examine whether any advance tax was actually payable by the assessee and also did not exercise the discretion vested under section 249(4)(b). The assessee had specifically contended that as per the computation of income, he was eligible for a refund and therefore no advance tax liability arose. This contention was not examined at all.
The Tribunal further noted that relevant evidences relating to cost of acquisition, conversion charges from agricultural to non-agricultural land, and development/improvement expenses were filed before the Tribunal, which were necessary for adjudicating whether the capital gains were short-term or long-term. Since these evidences were not considered earlier, the impugned order was set aside and the matter was restored to the file of the CIT(A) for fresh adjudication on merits after considering all evidences and granting reasonable opportunity to the assessee. The appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT SURAT
