ALOOR THOMAS JOY,THRISSUR V. ITO,WARD INTERNATIONAL TAXATION, KOCHI

ITA 1106/COCH/2024

AI Insights

The case involves Aloor Thomas Joy, the appellant, who appealed against the decision of the Commissioner of Income-tax (Appeals), which had dismissed his appeal in limine. The dismissal was based on the grounds that the assessee failed to deposit the advance tax payable before filing the return of income, as required under section 249(4)(b) of the Income Tax Act. The appellant contended that he had no income for the assessment year 2019-2020, and thus, was not liable to pay any advance tax. The Tribunal found that the income was assessed under sections 147 and 144 of the Act after reopening the case based on new information about cash deposits in the assessee's bank account. The Tribunal concluded that the CIT(A) erred in dismissing the appeal without considering these circumstances and thus restored the case for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 361071 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2019-2020
• Laws Referred To: Income-tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: DIVYA RAVINDRAN
• Keywords: Opportunity of being heard
• Section: 144

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri Inturi Rama Rao, Accountant Member & Shri Prakash Chand Yadav, Judicial Member ITA No.1106/Coch/2024 : Asst.Year 2019-2020 Aloor Thomas Joy Aloor House, Thaikkad Nenmini Guruvayoor Thrissur – 680 104. PAN : AZSPJ7531J. v. The Income Tax Officer Ward (International Taxation) Kochi. (Appellant) (Respondent) Appellant by : Smt.Divya Ravindran, Advocate Respondent by : Smt.Leena Lal, Sr.AR Date of Hearing : 19.05.2025. Date of Pronouncement : 20.05.2025 O R D E R Per Prakash Chand Yadav, JM : The present appeal of the assessee is arising from the order of the National Faceless Appeal Centre / learned Commissioner of Income-tax (Appeals) [“CIT(A)” for short] dated 06.11.2024, having DIN & Order No.ITBA/NFAC/S/250/2024- 25/1070143885(1) and relates to the assessment year 2019- 2020. 2. At the outset, we observed that in this case the learned CIT(A) has dismissed the appeal of the assessee in limine on the ground that the assessee failed to deposit the advance tax payable by him before filing of the return of income in terms of the provisions of section 249(4)(b) of the Act. ITA No.1106/Coch/2024. Aloor Thomas Joy. 2 3. Aggrieved with the order of the ld.CIT(A), the assessee has come up in appeal before us. The learned Counsel for the assessee pointed that since the assessee was not having any income for the impugned assessment year, he could not file the income-tax return and thereafter the income alleged to have been charged under the Income-tax Act has been computed u/s.147 r.w.s.144 of the Act, therefore, the assessee is not liable to pay any advance tax. 4. The learned DR tried to justify the action of the ld.CIT(A). 5. We have heard the rival submissions and perused the material available on record. Perusal of the assessment order would show that it is a case where no return of income was filed by the assessee as the assessee was under bona-fide belief that his income was not chargeable to tax. Thereafter on the basis of certain information revealing that the assessee has deposited cash in its bank account, the Revenue has reopened the case of the assessee u/s.148A of the Act. The AO finally passed the assessment order u/s.147 r.w.s. 144 of the Act. Having regard to the fact that the income chargeable to tax has been determined after the completion of assessment u/s.147 r.w.s. 144 of the Act, we are of the firm view that the ld.CIT(A) is not correct in dismissing the appeal in limine. Therefore, in the interest of justice, we restore the matter to the file of the ld.CIT(A) for examining afresh, in accordance with law. Needless to say, the ld.CIT(A) shall afford meaningful opportunity of being heard to the assessee before passing any order. ITA No.1106/Coch/2024. Aloor Thomas Joy. 3 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 20th day of May, 2025. Sd/- (Inturi Rama Rao) Sd/- (Prakash Chand Yadav) ACCOUNTANT MEMBER JUDICIAL MEMBER Cochin; Dated : 20th May, 2025. Devadas G* Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT, Cochin. 4. The DR, ITAT, Cochin. 5. Guard File. Asst.Registrar/ITAT, Cochin "