Creative Realmart Pvt Ltd Vs ITO (ITAT Jaipur)
The assessee, Creative Realmart Pvt. Ltd., filed an appeal against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (CIT(A)), Delhi, for the assessment year 2014-15. The appeal challenged the reopening of assessment under Section 147 and the issuance of notice under Section 148 by the Assessing Officer (AO), arguing that the proceedings were based on incorrect reasons, time-barred, and lacked prior approval from the specified authority. The assessee also contended that the CIT(A) wrongly dismissed its appeal ex-parte on the ground of non-payment of advance tax under Section 249(4)(b), despite filing a return in response to the notice under Section 148. Further grounds included unjustified additions of Rs. 1,14,55,968 (Rs. 1,10,00,000 as principal plus Rs. 4,55,968 as interest) claimed as unsecured loans, which the assessee argued were genuine, and the incorrect application of Section 115BBE. The assessee asserted that no opportunity for cross-examination was provided, and the CIT(A) relied on statements from third parties without verification.
The CIT(A) had dismissed the appeal ex-parte, stating that the appellant had not paid the amount equal to advance tax and thus the appeal was infructuous. The CIT(A) also emphasized that compliance with Sections 249(4)(a) and 249(4)(b) is compulsory before admission of appeal. The assessee challenged this, highlighting that it had filed the return of income in response to the notice and that the advance tax liability did not arise due to the return showing a loss.
