2012 (10) TMI 1102 - AT - Income Tax

Summary

Issues involved: Appeal against assessment u/s 143(3) of the Income-tax Act, 1961 for AY 2008-09 dismissed on grounds of non-payment of admitted tax.

Summary:

Issue 1: Maintainability of the appeal
The appeal was filed by the Assessee against the Order by the Commissioner of Income-tax (Appeals)-III, Hyderabad, contesting its assessment u/s 143(3) of the Income-tax Act, 1961 for AY 2008-09. The primary question was the maintainability of the appeal, as the first appellate authority dismissed it solely on the ground of non-payment of admitted tax, citing sec. 249(4) of the Act.

The Assessee filed its return of income for the relevant year, but there was a shortfall in the payment of self-assessment tax by &8377; 1.41 crores. Despite citing financial constraints as the reason for non-payment and requesting further time for payment, the appeal was dismissed by the CIT(A) as not maintainable u/s 249(4). The Assessee failed to show any infirmity in the impugned order, and non-payment of admitted tax was held to exclude the jurisdiction of the first appellate authority in admitting the appeal.

The Tribunal upheld the impugned order, stating that non-payment of admitted tax leads to a jurisdictional infirmity in the appeal. The Assessee conceded to a shortfall in the payment of admitted tax, and as the law in the matter was clear with undisputed facts, the appeal was dismissed.

In conclusion, the appeal by the Assessee against the assessment u/s 143(3) of the Income-tax Act, 1961 for AY 2008-09 was dismissed due to non-payment of admitted tax, rendering it not maintainable under sec. 249(4) of the Act.