Manoj Kumar Motwani Vs ACIT (ITAT Indore)
ITAT Indore held that rejection of appeal by CIT(A) on the footing of non-payment of advance tax as required by section 249(4)(b) untenable as payment of advance tax is not applicable in case of reassessment proceedings.
Facts- The assessee had deposited cash of Rs. 24,65,550/- in Bank A/c. The notice was issued u/s 148 to undertake proceeding of section 147 against assessee. In response to such notice. Ultimately, the AO passed assessment-order u/s 147 r.w.s. 144 of the Act to the best of his judgement assessing the entire deposit of Rs. 24,65,550/- as income from unexplained sources u/s 69A r.w.s. 115BBE. Aggrieved, the assessee carried matter in first-appeal. The CIT(A) treated assessee’s first-appeal as deficient on the footing of non-payment of tax as required by section 249(4)(b) and accordingly dismissed assessee’s appeal as non-admitted. Being aggrieved, the present appeal is filed.
Conclusion- Held that the assessee is engaged in small business of kirana/general items and the total income of assessee did not exceed the maximum amount not chargeable to tax, therefore there was neither any obligation to file return nor to pay advance-tax or self-assessment tax. The assessment-order also shows that the AO has taken returned income at Rs. Nil and assessed total income at Rs. 24,65,550/- after making an addition of equal amount. In such a situation, the CIT(A) was not correct in observing that there was a non-compliance of section 249(4)(b).
