Madho Tiwari Vs ITO (ITAT Kolkata)
Assessment was completed u/s 147 r.w.s. 144 (best judgment) due to non-compliance of notices. AO computed tax liability at ₹6,87,580, including advance tax & interest. CIT(A) dismissed the appeal on the ground of Section 249(4)(b) – non-payment of advance tax equal to liability, hence appeal was not admitted.
Assessee appealed against the order of NFAC (CIT(A)) dated 20.02.2024. The appeal before ITAT was delayed by 170 days, for which condonation petition was filed with affidavit explaining that delay occurred due to illness of the consultant & non-tracking of IT portal orders.
ITAT accepted the assessee’s explanation & condoned the delay, holding that the delay was caused by a reasonable cause & was not deliberate. Since the assessment was made under best judgment (144) & appeal was dismissed without proper adjudication, the matter required fresh examination. Bar on appeal for non-payment of advance tax must be applied judiciously, not mechanically. The principle of natural justice demands that the assessee be given an opportunity to substantiate his case.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal filed by the assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NAFC), New Delhi NFAC), Delhi dated 20.02.2024 in Appeal No. CIT(A), Kolkata-6/10429/2019-20 passed for Assessment Year 2012-13.
