DCIT Vs Nagin A. Vaghela (ITAT Ahmedabad)
ITAT Ahmedabad held that in spite of substantial unaccounted income the return was not filed hence as per provisions section 249(4)(b) of the Income Tax Act no appeal shall be admitted unless the advance tax owed has been paid.
Facts- AO observed that there was substantial undisclosed income, as the assessee admitted to unaccounted business income amounting to Rs.3,50,04,000/- during the search proceedings but did not file a return for the assessment year 2014-15. This led to several penalties being initiated for concealment of income by the Assessing Officer.
In appeal, CIT(Appeals) observed that the assessment was completed, determining the total income at Rs. 6,29,96,907/-, based on incriminating evidence uncovered during the search and other information in the Department’s records. This included unaccounted land sales, unexplained cash credits, and undisclosed business income. The demand raised was substantial, amounting to Rs. 1,77,42,736/-, as the assessee had not filed any return nor made any claim for advance or self-assessment tax payments. Thus, the appeal could not be admitted under the provisions of section 249(4)(b) of the Act.
Conclusion- In order to get his appeal admitted by the first appellate authority, the assessee must comply with the mandatory requirements of the provisions of section 249(4) (a) wherever these have application as to the payment of tax due on the returned income before the expiry of the period of limitation of filing the appeal. On failure of the assessee to comply with the requirement the first appellate authority is competent not to admit the appeal.
