Banyan Tree Diagnositc and Research Centre Vs ITO (ITAT Bangalore)
ITAT Bangalore held that dismissal of appeal by CIT(A) for non-payment of an amount equal to the amount of advance tax unjustified as assessee has explained good and sufficient reason for not paying the amount.
Facts- Assessee is a partnership firm. AO found that out of the total cash deposited in the account during the financial year 2016-17 amounting to Rs. 96,61,125/- the total deposit made during the demonetisation period was only Rs. 23,29,530/-. AO completed the assessment on a total income of Rs. 29,16,057/- u/s 144 of the Act. Aggrieved by the assessment completed u/s. 144 of the Act, the assessee preferred an appeal before the CIT(A).
CIT(A)/NFAC dismissed the appeal of the assessee in limine for not fulfilling the conditions laid down in s. 249(4)(b) of the Act. The main contention of CIT(A) is that where the assessee has failed to file return of income before the AO and also has not paid the amount equal to the Advance tax Payable prior to filing the appeal, the appeal of the assessee is hit by the provisions of s. 249(4)(b) of the Act. Being aggrieved, the present appeal is filed by the assessee.
