Case Law Details
Nine Globe Industries Pvt. Ltd Vs ACIT (ITAT Mumbai)
n the case of Nine Globe Industries Pvt. Ltd Vs ACIT, the Income Tax Appellate Tribunal (ITAT) in Mumbai delivered a significant ruling regarding the applicability of Section 249(4) of the Income Tax Act, 1961. The core issue was whether Section 249(4), which requires the payment of advance tax for an appeal to be considered valid, applies in reassessment proceedings where no advance tax liability exists. The ITAT ruled that this provision does not apply in such cases, providing clarity on a nuanced aspect of tax law.
Background and Initial Proceedings
For the assessment year 2012-13, Nine Globe Industries Pvt. Ltd. filed its Return of Income (RoI) on September 29, 2012, declaring a total income of Rs. 51,80,800. The case was initially taken up for scrutiny and no additions were made at that time. However, the case was reopened based on information from the Deputy Director of Income Tax (Investigation)-2, Surat, which suggested potential discrepancies involving accommodation entries.
The assessee did not file a return within the stipulated 30-day period following the reassessment notice. Consequently, on November 12, 2019, the assessee was issued a show-cause notice regarding a proposed addition of Rs. 14,31,25,612 under Section 144 of the Act for unexplained expenditure. In response, the assessee filed a revised RoI under Section 148 on November 19, 2019, declaring a slightly adjusted total income. Despite this, the Assessing Officer (AO) made an addition of Rs. 14,31,25,612 on December 23, 2019, under Section 69C for unexplained expenditure.
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