2012 (6) TMI 819 - AT - Income Tax

Summary

Issues Involved:
1. Rejection of appeals by CIT(A) u/s 249(4) of the Income-tax Act.
2. Payment of admitted tax on returned income.
3. Restoration of appeals to CIT(A) for adjudication on merits.

Summary:

Issue 1: Rejection of Appeals by CIT(A) u/s 249(4) of the Income-tax Act

The appeals were dismissed in limine by the CIT(A) because the assessees had not paid the admitted taxes on their returned incomes at the time of filing the appeals, as required by section 249(4)(a) of the Income-tax Act.

Issue 2: Payment of Admitted Tax on Returned Income

The assessees argued that they had paid the admitted tax on the returned income before the disposal of the appeal. The ITAT reviewed the payment details and confirmed that the admitted taxes were indeed paid on the respective dates mentioned in the provided table.

Issue 3: Restoration of Appeals to CIT(A) for Adjudication on Merits

The ITAT referred to the decision of the Coordinate Bench in the case of Banu Begum, where it was held that non-payment of admitted tax on returned income is a curable defect. Once the defect is cured by payment, the appeal becomes valid. The ITAT concluded that since the assessees had paid the admitted taxes, it was fair to admit the appeals. The ITAT set aside the impugned orders of the CIT(A) and restored the matters to the file of the CIT(A) for adjudication on merits, providing reasonable opportunity of hearing to the assessees.

Conclusion:

All the appeals under consideration were allowed, and the matters were restored to the CIT(A) for fresh adjudication on merits.

Order Pronounced:

Order pronounced in the open court on 08/06/2012.