Individual resident of 60 years or more not having business income is not required to pay advance tax

Vikram Singh Vs ITO (ITAT Delhi)

ITAT Delhi held that as per provisions of section 207 of the Income Tax Act, an individual resident of 60 years or more and not having income chargeable under the head ‘profit and gains’ of business or profession is not required to pay the advance tax.

Facts- Assessee sold an immovable property of Rs. 2,62,35,074/- during the FY 2009-10. To verify the transaction an information was called u/s 133(6) of the Act. However, Assessee did not respond.

Proceedings u/s 147 of the Act was initiated and notice u/s 148 of the Act was issued after prior approval of ld Pr. CIT, Noida. Assessee did not furnish return of income u/s 148 of the Act. Assessee had also not furnished PAN. Notice u/s 142(1) along with questionnaire was issued. Assessee submitted that the land sold was agricultural land and was of ancestral nature.

No return of income for A.Y. 2010-11 or PAN was submitted therefore, show cause notice u/s 144 of the Act was issued and no reply was received. The assessment was completed u/s 147/144 of the Act holding that land sold was capital asset and that the Assessee had failed to submit ITR for A.Y. 2010-11 and thus LTCG of Rs. 1,31,17,537/- was added to the income of the Assessee. As it was challenged in appeal before the ld CIT(A), the ld First Appellate Authority did not decide the appeal on merits but passed the impugned order by dismissing the appeal for non compliance of mandatory provision of section 249(4) of the Act. Assessee is now in appeal before the tribunal.

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