RAKESH KUMAR SHARMA,PATNA V. INCOME TAX OFFICER, INCOME TAX DEPARTMENT

ITA 451/PAT/2024

AI Insights

The case involves an appeal by Rakesh Kumar Sharma against the order of the Commissioner of Income Tax (Appeals), which dismissed his appeal for non-deposit of advance tax. The Tribunal noted that the assessee's income was below the prescribed monetary limit for taxation, and hence, he was not liable to pay advance tax. The primary legal issue was whether the CIT(A) was justified in dismissing the appeal in limine without adjudicating on the merits, given the assessee's claim of non-taxability and non-requirement to pay advance tax. The Tribunal concluded that the CIT(A) should have adjudicated the appeal on its merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32385 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Condonation of delay; Set aside; Unexplained investment
• Section: 250; 22; 69

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PATNA BENCH, VIRTUAL HEARING AT KOLKATA Before SRI SANJAY GARG, JUDICIAL MEMBER & SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No.: 451/PAT/2024 Assessment Year: 2015-16 Rakesh Kumar Sharma ………….. Appellant C/o Om Prakash Sharma, Ghagha Gali, Mahavir Asthan, Bihar-800008. (PAN: BUYPS1706A) Vs. ITO, Ward-5(1), Patna .............. Respondent Appearances: Appellant represented by: Shri Sudip Sinha, Advocate Respondent represented by: Shri Ashwani Kr. Singal, JCIT Date of concluding the hearing : 16.01.2025 Date of pronouncing the order : 28.01.2025 ORDER Per Sanjay Garg, Judicial Member: The captioned appeal has been preferred by the assessee against the order dated 28.03.2024 of the Ld. Commissioner of Income Tax (Appeal), National Faceless Appeal Centre, Delhi [hereinafter referred to as Ld. ‘CIT(A)’] u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) for Assessment Year (AY) 2015-16. 2. The appeal of the assessee is time barred by 22 day. A separate application for condonation of delay has been filed. Considering the averments made in the said application and the shortness of the delay, we condone the delay in filing this appeal and the same is taken up for hearing. 3. The assessee in this appeal is aggrieved by the action of the ld. CIT(A) in dismissing the appeal of the assessee in limine for non deposit of advance tax. I.T.A. No.: 451/PAT/2024 Rakesh Kumar Sharma, AY : 2015-16 Page 2 of 3 4. At the outset, the Ld. Counsel for the assessee has submitted that the advance tax, if any, was payable on the admitted liability. In the case in hand, the assessee’s income was less than the prescribed monetary limit, the income above which is chargeable to tax. Since there was no tax liability of the assessee hence, there was no question of paying any advance tax. He has submitted that the impugned addition made by the Assessing Officer was the subject matter of the present appeal. That the same was a disputed liability imposed upon the assessee by the Assessing Officer, hence there was no question of payment of advance tax. 5. We note that in this case, the impugned addition has been made by the Assessing Officer on account of unexplained investment u/s. 69 of the Act. However, the assessee has disputed the aforesaid addition made by the Assessing Officer which was subject matter of adjudication before the Ld. CIT(A). Since the assessee has claimed that his income was less than the prescribed threshold limit to invite taxation, therefore, the assessee was not supposed to deposit any advance tax. Under the circumstances, the Ld. CIT(A) was supposed to adjudicate the appeal on merits. 6. In view of the aforesaid submissions of the assessee, the dismissal of the appeal by the ld. CIT(A) is limine, cannot be held to be justified. The impugned order of the ld. CIT(A) is hereby set aside, and the matter is restored back to the file of the ld. CIT(A) to decide the appeal on merits after giving due opportunity of hearing to the assessee. 7. In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open Court on 28th January, 2025. Sd/- Sd/- [Sanjay Awasthi] [Sanjay Garg] Accountant Member Judicial Member Dated: 28.01.2025 J.Dey (Sr. P.S.) I.T.A. No.: 451/PAT/2024 Rakesh Kumar Sharma, AY : 2015-16 Page 3 of 3 Copy of the order forwarded to: 1. Appellant : Shri Rakesh Kumar Sharma 2. Respondent : ITO, Ward-5(1), Patna 3. CIT(A), NFAC, Delhi 4. CIT 5. DR, ITAT, Patna Bench, Patna. 6. Guard File. //True copy // By order Assistant Registrar ITAT, Patna Benches "