Tax Appeals Allowed for Delayed Payment, Tribunal Directs Reconsideration

The Appellate Tribunal ITAT Hyderabad allowed both appeals of the assessee against the CIT(A)'s order dismissing appeals in limine for non-payment of admitted taxes. The Tribunal found that the CIT(A) had not considered the assessee's submission regarding the delayed tax payment due to market conditions and directed the CIT(A) to admit the appeals, consider the condonation of delay, and decide on the merits. Consequently, the appeals were allowed for statistical purposes, with the order pronounced on 26.12.2011.

---

---

Issues involved: Appeal against order of CIT(A) dismissing appeals in limine for non-payment of admitted taxes u/s 249(4)(a) of the Act.

Summary:
The Appellate Tribunal ITAT Hyderabad heard two appeals by the assessee against a common order of the CIT(A)-I, Hyderabad for the assessment years 2006-07 and 2007-08. The main grievance of the assessee was against the CIT(A) dismissing the appeals in limine without considering the merits due to non-payment of admitted taxes as required u/s 249(4)(a) of the Act.

The assessee submitted a letter to the CIT(A) stating that the admitted taxes had been paid for both assessment years, with a delay due to the collapse of the real estate market. The Tribunal found that the CIT(A) had not considered this letter and had dismissed the appeals solely based on non-payment of taxes. As the Departmental Representative did not contest the submissions of the assessee, the Tribunal set aside the CIT(A)'s order and directed the CIT(A) to admit the appeals, consider the request for condonation of delay in tax payment, and decide on the merits in accordance with the law.

Ultimately, both appeals of the assessee were allowed for statistical purposes, and the order was pronounced in court on 26.12.2011.

---