9911796707
TMI Blog2024 (12) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... o the amount of advance tax which was payable by her. The assessee has claimed that the amount deposited in cash in her bank account represents old recoveries from the farmers/villagers and there is no income during the year under consideration, as the assessee has shifted to USA and the business has been closed down since 2014. In any case, on perusal of the assessment order, it is clearly discernible that there is no admitted income by the assessee and the addition as was made by the Assessing Officer which is also the assessed income in the hands of the assessee, is subject matter of dispute and challenge by the assessee before the ld. CIT(Appeals) as well as before Tribunal. Thus, the assessee has never admitted this addition to be her income, and under these circumstances, there is no advance tax liability arising on such disputed income keeping in view the claim of the assessee that she was not having any other income in India except that there was interest income which was below matter. In any case, the AO has not brought to tax any income apart from this addition on account of cash deposits in the bank account. Thus, so far as maintainability of appeal before ld. CIT(A) is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sation is abnormally high as compared to the pre-demonetized period, and the sources of these deposits are not known to department. A show cause notice u/s 142(1) was issued by the Assessing Officer to the assessee, on 27.11.2019, requiring assessee to explain the sources of deposits in her bank account. Thereafter, further statutory notices u/s 142(1) were issued by the AO during assessment proceedings. The assessee was asked by the AO to produce books of accounts, bills, vouchers etc pertaining to her business. Assessee submitted that she was running Kisan Seva Kendra at very interior area of Billaua, at Karhal Sheopur Road, which was closed in 2014, but there were some old outstanding recoverable from farmers and villagers which remained unrealised since then. The assessee was making efforts to collect the same and deposit into her bank limit account, where there is an loan outstanding against the assessee and the amount was deposited to clear the bank loan. It was submitted that in the month of October, 2016, because of crop and Diwali season and some more serious efforts of family member, she recovered the amount and the same was deposited into CC limit/loan account so as to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der quoted that only a afterthought and cooked up story to some cover up the undisclosed sources of cash deposit during the period of demonetization as well as other deposit during the year under consideration fully baseless and is purely only on presumptions and surmises and also not reliable in case of the assessee. Sir as per direction, who looked after the affair of her reply has been submitted to the Ld. AO in the absence of the assessee who stay at that time in USA. After received the reply, the Ld. AO has refer the matter to the Hon'ble JCIT under section 144A of the Income Tax Act 1961 for obtaining the directions in disregards. The Hon'ble JCIT has not provided any opportunity to be heard before issue of direction in proceeding under section 144A of the Act The Hon'ble JCIT issue the direction to the ld. A.O. to called for details/ address of beneficiary any from the bank and proceeds with assessment proceeding in order to complete the assessment after taken in to consideration the documents brought / to be brought on record keeping in view of the CBDT in this regards but the Ld. AO issue show cause notice in other issue, i.e., explain the sources of the deposit in bank ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from farmers, which were recovered from the farmers etc. in cash, and was deposited in cash in the bank account. It was the say of the ld. Counsel for the assessee that perusal of the assessment order will reveal that the assessee had not filed return of income as the income of the assessee was below taxable limit. It was submitted that the additions were made by the AO u/s. 69A with respect to cash deposit in the bank account which is a disputed liability, and the assessee has challenged the additions as were made by the AO before the ld. CIT(Appeals) as well as before the Tribunal. It was also submitted that the assessee has meagre interest income, which is much below the taxable limit and hence, the assessee has not filed return of income because the assessee is not liable to file the return of income. Thus, it was submitted that the ld. CIT(Appeals) has wrongly invoked the provisions of section 249(4)(b) of the Act and appeal has been dismissed as un-admitted. 6.2 Ld. Sr. DR fairly submitted that there is no admitted liability by the assessee and the addition of Rs. 16,24,600/- is the addition made by the Assessing Officer u/s. 69A vide assessment order dated 24.12.2019, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed earlier in this order. Thus, the is no admitted tax liability. So far admitted income is concerned, it is admitted that the assessee has income from interest which is much below taxable limits, and hence no return of income was filed nor there was any liability to deposit advance tax as per the provisions of the 1961 Act. The relevant ground of appeal (Ground No. 1) before ITAT is reproduced hereunder:- 1) "The Ld. CIT(A) erred in Non-Admitting the Appeal Filed by the Appellant with the reason that " The appellant has not offered YES comment at Sl. No. 09 of Form 35" further with the comment " Since the appellant has not filed the Return of Income as well not paid an amount equal to the amount of advance tax which was payable by it, present appeal is not liable to be admitted" without considering the fact that the appellant was not liable to File Return of income originally as she was not having income chargeable to Tax in India and accordingly the appellant has filed rightly Not Applicable comment in the Sl. No. 09 of Form 35." 7.3 Reference is drawn to the provisions of section 249(4), which is reproduced as under : Section 249: "(4) No appeal under this Chapter shall b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness has been closed down since 2014. In any case, on perusal of the assessment order, it is clearly discernible that there is no admitted income by the assessee and the addition as was made by the Assessing Officer of Rs. 16,24,600/- which is also the assessed income in the hands of the assessee, is subject matter of dispute and challenge by the assessee before the ld. CIT(Appeals) as well as before Tribunal. Thus, the assessee has never admitted this addition of Rs. 16,24,600/- to be her income, and under these circumstances, there is no advance tax liability arising on such disputed income keeping in view the claim of the assessee that she was not having any other income in India except that there was interest income which was below matter. In any case, the AO has not brought to tax any income apart from this addition of Rs. 16,24,600/- on account of cash deposits in the bank account. Thus, So far as maintainability of appeal before ld. CIT(A) is concerned, I do not find that in such circumstances the appeal will not be maintainable because entire additions as were made by the AO is subject to dispute and challenge before higher appellate authorities, and that the assessee do ..... X X X X Extracts X X X X X X X X Extracts X X X X
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