Case Law Details
Raj Kishor Prasad Vs Assessment Unit (ITAT Patna)
The Income Tax Appellate Tribunal (ITAT) Patna reviewed an appeal by Raj Kishor Prasad against an order passed by the National Faceless Appeal Centre (CIT(A)) regarding the assessment year 2018-19. The case originated from information received via the INSIGHT portal, suggesting that taxable income had escaped assessment. The Assessing Officer (AO) found that the assessee had neither filed a return under Section 139 nor responded to a notice under Section 148, leading to an addition of ₹1.32 crore as unexplained income under Section 68. The CIT(A) dismissed the appeal solely on procedural grounds, citing non-payment of advance tax as required under Section 249(4)(b), without reviewing the merits of the case.
Before ITAT, the assessee contended that his total income for the year was ₹2.40 lakh—below the taxable limit—justifying the non-filing of returns. Considering the principle of natural justice, ITAT observed that CIT(A) had not properly examined the documents submitted. ITAT remanded the case back to CIT(A), instructing a fresh review based on the assessee’s submissions. The assessee was directed to file necessary applications to justify his claim, and CIT(A) was instructed to reassess the matter in accordance with the law. The appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT PATNA
The present appeal has been preferred by the assessee against the order dated 12.01.2024 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’).
2. At the outset, the Registry has informed that there is a delay of 16 days in filing the appeal. The assessee filed an application for condonation of delay stating reasons for such delay. After considering the application, we find reasonable cause therein. We, therefore, condone the delay in filing the appeal and adjudicate the appeal on merits of the case.
3. Brief facts of the case are that an information was received from the INSIGHT portal which suggested that the income chargeable to tax has escaped assessment in the case of the assessee for the assessment year 2018-19. The Assessing Officer noticed that despite having financial transactions, no return of income was filed by the assessee for the relevant assessment year neither u/s 139 of the Act nor in response to notice u/s 148 of the Act. Accordingly, the Assessing Officer made an addition of cash deposits at Rs.1,32,98,550/- as unexplained income u/s 68 of the Act.
4. Aggrieved by the above order, the assessee went in appeal before the ld. CIT(A) where the ld. CIT(A) dismissed the appeal of the assessee stating that as per provisions of section 249(4)(b) of the Act, it is mandatory to require to pay an amount equal to the amount of advance tax which was payable by the assessee if no return of income has been filed. Since the assessee did not able to file return of income, therefore, the ld. CIT(A) on this count only dismissed the appeal of the assessee.
5. Dissatisfied, the assessee is in appeal before this Tribunal raising various grounds. However, the main contention of the assessee is that the assessee is an individual and the income of the assessee during the relevant assessment year was only Rs.2,40,983/- which is below maximum taxable limit chargeable to tax. The ld. AR therefore has stated that the assessee did not file the return as there was no tax liability upon the assessee. He prayed that the matter may be remanded back to the file of the ld. CIT(A) with a direction to reexamine the issue on merits.
6. On the other hand, the ld. DR did not object to the above prayer made by the assessee. However, he stated that the assessee has failed to satisfy before the ld. CIT(A) regarding the non-payment of tax. Therefore, he stated that the appeal of the assessee may be dismissed.
7. We, after considering the rival submissions and reviewing the documents available on record, find that the ld. CIT(A) has not properly considered the documents filed by the assessee and dismissed the appeal of the assessee without entering into merits of the case. We, therefore, in the interest of natural justice and fair play, deem it necessary to provide the assessee with an opportunity to submit the required or relevant documents to substantiate his claim before the ld. CIT(A). Accordingly, we remand the issue to the file of the ld. CIT(A) for fresh adjudication. The assessee is directed that he will file necessary application before the ld. CIT(A) in order to satisfy that there is no tax liability as claimed by the Assessing Officer in his assessment order. The ld. CIT(A) is also directed to re-examine the submissions and documents of the assessee and pass a fresh order in accordance with law.
8. In terms of the above, the appeal of the assessee is allowed for statistical purposes.
Kolkata, the 13th January, 2025.
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