RAMADEVI NELATURI,CUDDAPAH V. ITO., WARD-1, PRODDUTUR

ITA 1031/HYD/2024

AI Insights

The case involves Smt. Ramadevi Nelaturi, who did not file her income tax return for the Assessment Year 2019-20. The Assessing Officer, upon discovering cash deposits of Rs.16,50,000 in her account, issued a notice under section 148 of the I.T. Act, 1961, suspecting income had escaped assessment. The assessee failed to comply with the notices, leading to a 'Best Judgment Assessment' taxing the sum of Rs.16,50,000 under section 69C of the I.T. Act. The CIT (A) dismissed the appeal in limine under section 249(4), which was contested at the Tribunal. The Tribunal's decision focused on the incorrect application of section 249(4) by the CIT (A), leading to the setting aside of the CIT (A)'s order and directing a merit-based review.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 26868 (ITAT-HYDERABAD)
• Duration Of Justice: 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 06-11-2024
• Assessment Year: 2019-2020
• Appeal Filed On: 09-10-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S.RAMA RAO
• Section: 148; 69C

Judgement Text

" ITA No 1031 of 2024 Ramadevi Nelaturi Page 1 of 3 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘SMC‘ Bench, Hyderabad Before Shri INTURI RAMA RAO, Accountant Member आ.अपी.सं /ITA No. 1031/Hyd/2024 (िनधाŊरण वषŊ/Assessment Year: 2019-20) Smt. Ramadevi Nelaturi CUDDAPAH PAN: AVIPN5487D Vs. Income Tax Officer Ward -1 Proddutur (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: Shri S. Rama Rao, Advocate राज̾ व Ȫारा/Revenue by:: Shri Aravindakshan, DR सुनवाई की तारीख/Date of hearing: 06/11/2024 घोषणा की तारीख/Pronouncement: 06/11/2024 आदेश/ORDER This appeal filed by the assessee is directed against the order dated 19/07/2024 of the learned CIT (A)-NFAC Delhi, relating to A.Y.2019-20. 2. The brief facts of the case are that the assessee is an individual and had not filed her return of income for the A.Y 2019-20. The Assessing Officer on receipt of information that the appellant made cash deposits of Rs.16,50,000/- with the District Cooperative Central Bank Ltd, Kadapa and formed an opinion that the income had escaped the assessment. Accordingly, issued ITA No 1031 of 2024 Ramadevi Nelaturi Page 2 of 3 a notice u/s 148 of the I.T. Act, 1961 for the A.Y 2019-20. The appellant neither complied with the notices issued u/s 148 and 142(1) of the I.T. Act, 1961. Under the circumstances, the Assessing Officer has completed the “Best Judgment Assessment” by bringing to tax a sum of Rs.16,50,000/- by invoking the provisions of section 69C of the I.T. Act, 1961. 3. Being aggrieved, the assessee preferred an appeal before the learned CIT (A) who vide impugned order dismissed the appeal in limine invoking the provisions of section 249(4) of the I.T. Act, 1961. 4. Aggrieved by the order of the learned CIT (A), the assessee is in appeal before the Tribunal. 5. I have heard both the parties, perused the material available on record and gone through the orders of the authorities below. The issue that arises for my consideration is, whether the learned CIT (A) NFAC was justified in dismissing the appeal in limini, by placing reliance on the provisions of section 249(B) of the I.T. Act, 1961. From the material available on record, it would be clear that there was no obligation on the part of the assessee to pay advance tax in terms of provisions of section 209 of the I.T. Act, 1961 but for the addition made by the Assessing Officer. There was no material available on record to show that there is a liability to pay advance tax in terms of provisions of section 209 of ITA No 1031 of 2024 Ramadevi Nelaturi Page 3 of 3 the I.T. Act, 1961. Therefore, the learned CIT (A) ought not to have invoked the provisions of section 249(4) of the Act, I therefore, set aside the order of the learned CIT (A) and direct the NFAC to dispose of the appeal on merits in accordance with law. 6. In the result, appeal filed by the assessee stands partly allowed. Order pronounced in the Open Court on 6th November, 2024. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Hyderabad, dated 6th November, 2024. Vinodan/sps Copy to: S.No Addresses 1 Smt. Ramadevi Nelaturi, 10/280-67-1 Sai Rajeshwari Colony, Kothapalle, Proddatur, A.P 516362 2 Income Tax Officer Ward-1 Proddatur, A.P 3 Pr. CIT - Kadapa 4 DR, ITAT Hyderabad Benches 5 Guard File By Order "