Bashir Ahmad Rah Vs ITO (ITAT Amritsar)
The ITAT, Amritsar Bench held that appeals should not be dismissed in limine u/s 249(4)(b) without granting the assessee an effective opportunity to explain why advance tax was not payable. In this case, the assessee—a poultry businessman—had large bank credits and no returns filed for AYs 2014-15 & 2016-17. The AO completed ex-parte reassessments, treating entire bank credits as income. The CIT(A) dismissed the appeals outright for non-payment of admitted tax, without examining whether the assessee had any advance-tax liability at all.
Before the Tribunal, the assessee pleaded medical incapacity (heart surgery) and contended that poultry trade yields thin margins, with bank credits representing gross receipts, not income. The Tribunal held that section 249(4)(b) requires a determination of “admitted tax”, and where the assessee claims no advance-tax liability, the appellate authority must first examine that claim rather than summarily dismiss the appeal.
Accordingly, the ITAT set aside the in-limine dismissal and restored the matter to CIT(A) to decide admissibility and merits after granting one opportunity. Both appeals were allowed for statistical purposes, with all merits kept open
FULL TEXT OF THE ORDER OF ITAT AMRITSAR
These two appeals are filed by the assessee against the orders of the ld. CIT (A) NFAC, Delhi dated 21.02.2024, for both the years, passed u/s 250 of the Income Tax Act, 1961( henceforth the Act ) which has emanated from the orders of the AO ( assessment unit ) dated 17/05/2023 for AY 2014-15 and dated 04/05/2023 for AY 2016-17 , both passed u/s 147 rws 144/144B .
