Sahyogh Nagri Sahkari Patsanstha Maryadit Vs ITO (ITAT Pune)
Income Tax Appellate Tribunal (ITAT), Pune bench, has set aside an order by the National Faceless Appeal Centre (NFAC)/Commissioner of Income-tax (Appeals) that summarily dismissed an appeal from Sahyogh Nagri Sahkari Patsanstha Maryadit for Assessment Year 2014-15. The ITAT ruled that the non-payment of advance tax, as stipulated under Section 249(4)(b) of the Income Tax Act, 1961, cannot be the sole basis for dismissing an appeal without adjudication.
The cooperative credit society, Sahyogh Nagri Sahkari Patsanstha Maryadit, had not filed its return of income for the relevant assessment year. Information available with the Income Tax Department indicated that the assessee had deposited cash amounting to Rs. 1,45,39,000/- in a bank account. Consequently, an order under Section 148A(d) of the IT Act was passed, reopening the case after the assessee’s objections were decided. Notices under Sections 148 and 142(1) were subsequently issued.
In response to the Section 148 notice, the assessee belatedly filed a return of income, declaring Nil income after claiming deductions under Chapter VI-A. However, due to the assessee’s failure to respond to subsequent notices, the Assessing Officer completed the assessment ex parte under Section 144 of the IT Act, determining an income of Rs. 1,45,39,000/-. This assessed income included an addition for unexplained money under Section 69A read with Section 115BBE of the IT Act.
