Smt. Ramadevi Nelaturi Vs ITO (ITAT Hyderabad)
In the case of Smt. Ramadevi Nelaturi vs. ITO, the ITAT Hyderabad addressed the dismissal of an appeal by the CIT(A)-NFAC under Section 249(4) of the Income Tax Act, 1961. The appellant had not filed her return of income for the assessment year 2019-20, leading the Assessing Officer to issue a notice under Section 148 after identifying cash deposits of ₹16.5 lakh in her bank account. A “Best Judgment Assessment” was completed under Section 69C, treating the deposits as unexplained income. On appeal, the CIT(A) dismissed the case citing non-payment of advance tax as per Section 249(4). However, the Tribunal found that the provisions of Section 249(4) were incorrectly applied, as the liability for advance tax under Section 209 was contingent upon the addition made by the Assessing Officer and not pre-existing. The Tribunal held that the absence of advance tax liability should not prevent the appeal from being heard on its merits. Consequently, the ITAT set aside the CIT(A)’s order and directed the NFAC to dispose of the appeal in accordance with the law. This decision reinforces that appeals should not be dismissed based on advance tax liability when such liability arises solely from disputed assessments.
