Ambai Gramin Bigarsheti Sah Pat Sanstha Maryadit Vs ITO (ITAT Pune)
Tribunal: Section 249(4)(b) Cannot Bar Appeal When No Advance Tax Payable – Assessee Gets Another Chance
Pune Tribunal has held that dismissal of appeal u/s 249(4)(b) is not justified where the assessee had no tax liability in the preceding year. Tribunal remanded the issue of addition u/s 69A to AO for fresh adjudication.
Assessee, a cooperative society, did not file its return of income. AO, in best judgment assessment u/s 144, treated cash deposits of ₹10.86 lakh in bank accounts as unexplained u/s 69A. On appeal, CIT(A) dismissed the case for statistical purposes holding that appeal was barred by s.249(4)(b) as advance tax had not been paid.
Before ITAT, Assessee argued that being a co-operative society eligible for deduction u/s 80P, & having no prior year tax liability, s.249(4)(b) could not be invoked. It also furnished detailed evidence including cash book, bank statements & depositor declarations to establish source of deposits.
Tribunal observed that the CIT(A) erred in applying s.249(4)(b) since there was no prior tax liability requiring advance tax payment. Considering the availability of records & evidence, & in the interest of justice, the matter was remanded to the Jurisdictional AO for fresh consideration. AO was directed to provide reasonable opportunity of hearing, while Assessee was directed to cooperate & update latest contact details on ITBA portal. Accordingly, the impugned order was set aside & the appeal was allowed for statistical purposes.
