BASHIR AHMAD RAH,REHPORA V. INCOME TAX OFFICER WARD-1, SRINAGAR

ITA 175/ASR/2024

AI Insights

The case involves two appeals filed by the assessee, Bashir Ahmad Rah, against the orders of the CIT (A) NFAC, Delhi, for the assessment years 2014-15 and 2016-17. The appeals were initially dismissed by the CIT (A) due to non-compliance with notices and non-payment of advance tax, as required under section 249(4)(b) of the Income Tax Act, 1961. The assessee, engaged in the poultry business, had deposited significant amounts of cash in his bank accounts, which were assessed as income due to non-filing of tax returns. The tribunal, considering the circumstances including the assessee's health issues and the nature of his business, decided to allow the appeals for statistical purposes and remanded the matter back to the first appellate authority for a detailed examination on merits.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 833503 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 10 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 03-04-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: FARHAT KHAN
• Section: 147; 133(6)

Judgement Text

"आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘DB’. AMRITSAR BEFORE SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER & SHRI UDAYAN DASGUPTA, JUDICIAL MEMBER आयकर अपील सं./ ITA Nos. 175 & 176/ASR/2024 Ǔनधा[रण वष[ / Assessment Years 2014-15 & 2016-17 Bashir Ahmad Rah, Khudwani Wanpoh, Jammu and Kashmir 192331 V s The ITO, Ward 1, Srinagar èथायी लेखा सं./PAN NO: CEHPR7830E अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent VIRTUAL HEARING Assessee by : None Revenue by : Sh. Farhat Khan, CIT DR Date of Hearing : 02.02.2026 Date of Pronouncement : 03.02.2026 O R D E R Per Udayan Dasgupta, J.M.: 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 . 2. There was no appearance on behalf of the assessee or its counsel, on repeated calls, but considering the materials on record and the grounds of appeal we proceed to dispose off both the appeal after hearing the Ld DR. Printed from counselvise.com ITA Nos. 175 & 176/ASR/2024 A.Ys. 2014-15 and 2016-17 2 3. It is seen from record that written submissions for both the years are filed by the assessee, and the facts and issues being identical for both the years, the same are taken together for disposal for the sake of convenience. 4. Brief facts emerging from records are that the assessee an individual is engaged in the business of poultry and has deposited cash in his bank account with Jammu and Kashmir Bank A/c No XXXXX00147, amounting to Rs. 2.72 crores for the Asst year 2014-15 and an amount of Rs. 2.08 crores for the AY 2016-17 and in absence of any return of income being filed by the assessee for either of the years, coupled with total non-compliance to various notices issued by the AO , assessment for both the years were completed on the basis of information gathered from the bankers u/s 133(6) of the Act , and entire credits in the bank account ( consisting of cash deposits and other than cash entries), for each of the years, has been assessed as income at Rs. 4.75 crores and Rs. 5.66 crores, respectively, against which the matter was carried in appeal before the Ld first appellate authority. 5. In absence of any compliance to notices issued by the Ld first appellate authority , the appeals were dismissed in limine , without admitting the appeals for adjudication on merits , for non-payment of advance tax ( admitted tax ) coupled with the fact that no return has been filed for any of the years , triggering the provisions of section 249(4)(b) of the Act , in absence of any application , praying for waiver or exemption of pre deposit. 6. The claim of the assessee as evident from the written submissions on record are that the assessee has undergone heart surgery and was Printed from counselvise.com ITA Nos. 175 & 176/ASR/2024 A.Ys. 2014-15 and 2016-17 3 medically indisposed and could not comply with various notices from the department and it was further stated that the business of poultry yields very nominal margins and the total credits in the bank accounts are out of sale proceeds of poultry products and given an opportunity the assessee will be able to prove that he is not liable to making payment of advance tax u/s 210 of the Act, and the Ld first appellate authority has dismissed the appeal in limine without affording an opportunity to the assessee to explain the reasons for non payment. 7. As such he prays for an opportunity to explain his case before the Ld first appellate authority both on the technical issue of section 249(4)(b) and also on merits. 8 The Ld DR relied on the order of the Ld CIT(A) and submitted that in absence of any computation of income being furnished by the assessee , even at this stage , it is not ascertainable as to what is the assessee’s admitted tax and whether the same attracts the provisions of section 210 or not . 9. We have considered the submission of the Ld DR and the written submission on record. We are of the opinion that in the interest of justice the assessee may be allowed an opportunity to explain his case with materials and evidences, that prima facie he does not have the liability of payment of advance tax and on satisfactory explanation of the same the appeal is to be admitted to be adjudicated on merits on the grounds contained in form 35, and the assessee is also directed to furnish all evidences and submission in support of his contention and to fully cooperate in appellate proceedings. Printed from counselvise.com ITA Nos. 175 & 176/ASR/2024 A.Ys. 2014-15 and 2016-17 4 10. We have not expressed any opinion on merits. 11. Both the appeals are allowed for statistical purpose. Order pronounced on 03. 02.2026. SD/- SD/- (MANOJ KUMAR AGGARWAL) (UDAYAN DASGUPTA) ACCOUNTANT MEMBER JUDICIAL MEMBER “rkk” आदेश कȧ ĤǓतͧलͪप अĒेͪषत/ Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आयुÈत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar Printed from counselvise.com "