2024 (8) TMI 811 - AT - Income Tax

Exparte order passed by CIT(A) - CIT(A) non admitting the appeal on the ground that the assessee had not satisfied the condition of payment of advance tax as specified u/s 249(4)(b) - contention of the assessee that he was suffering from Heart problem got hospitalized due to heart attack was undergone angioplasty due to which could not appear on the dates of hearing provided by the AO - HELD THAT - We find that the appeal of the assessee was dismissed in a summery manner without admitting the same for adjudication on merits of the case. It was the observation of LD CIT(A)/NFAC that the assessee was required to deposit advance tax in the light of section 249(4)(b) of the IT Act when the assessee was issued show cause to explain this point he did not chose to file any application to exempt him from payment of advance tax in the light of the fact that no advance tax is payable by him, instead a letter dated 18-08-2021 was filed mentioning that return of income is not filed as there was no taxable income. In the light of decisions passed by Co-ordinate Bench of the Tribunal in the case of Dilip Hiralal Chaudhari 2024 (6) TMI 273 - ITAT PUNE and in the case of Vishnusharan Chandravanshi 2024 (6) TMI 238 - ITAT RAIPUR and case of Govidappa Setty 1997 (6) TMI 8 - KARNATAKA HIG H COURT as well as considering the totality of the facts of the case, we deem it appropriate to set-aside the order passed by LD CIT(A)/NFAC with a direction to admit the appeal of the assessee for adjudication of the appeal on merits of the case after providing reasonable opportunity of hearing to the assessee. Appeal filed by the assessee is partly allowed for statistical purposes.

Summary

Issues:
1. Validity of assessment order passed without mentioning DIN as per CBDT Circular.
2. Dismissal of appeal by CIT(A) for non-payment of advance tax.
3. Non-compliance with notices due to health reasons and subsequent assessment.
4. Appeal against CIT(A)'s decision.

Detailed Analysis:
Issue 1: The appellant challenged the assessment order for not mentioning the DIN, citing CBDT Circular and legal precedents. The Tribunal noted the appellant's argument and emphasized the importance of complying with procedural requirements. Referring to relevant case law, the Tribunal directed the CIT(A) to admit the appeal for further adjudication on its merits, stressing the need for compliance with legal provisions.

Issue 2: The CIT(A) dismissed the appeal due to the appellant's alleged failure to pay advance tax as required under section 249(4)(b) of the IT Act. The appellant contended that no advance tax was payable as their income was non-taxable. The Tribunal considered the appellant's submissions, citing case law and statutory provisions. It concluded that the CIT(A) should have admitted the appeal for a thorough examination of the case on its merits, directing a reconsideration of the appeal with a fair opportunity for the appellant.

Issue 3: The appellant cited health reasons for non-compliance with notices during the assessment period. The AO proceeded with an ex-parte assessment, resulting in disputed tax liabilities. The Tribunal acknowledged the appellant's health issues and the impact on compliance, noting the AO's failure to consider relevant deductions and allowances. It directed the CIT(A) to reevaluate the case, emphasizing the need for a fair hearing and consideration of all facts before making a decision.

Issue 4: The appellant appealed the CIT(A)'s decision, arguing for a reconsideration based on legal grounds and factual circumstances. The Tribunal reviewed the arguments presented by both parties, highlighting the appellant's claim of non-taxable income and the procedural lapses in the assessment process. Considering the legal principles and precedents cited, the Tribunal partially allowed the appeal, directing the CIT(A) to review the case comprehensively and provide a fair opportunity for the appellant to present their case.

In conclusion, the Tribunal partially allowed the appellant's appeal, emphasizing the importance of procedural compliance, fair hearings, and thorough consideration of legal and factual aspects in tax assessment matters.