Appeal against Income Tax Act Section 139(9) Order Dismissed

The Tribunal upheld the CIT(A)'s decision that an appeal against an order under section 139(9) of the Income Tax Act is not maintainable under section 246A. The assessee's appeal was dismissed, and they were advised to pursue alternative legal remedies if desired.

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Issues Involved:
1. Maintainability of appeal against the order passed under section 139(9) of the Income Tax Act, 1961.
2. Validity of treating the return filed by the assessee as defective under section 139(9).

Summary of Judgment:

Issue 1: Maintainability of Appeal Against Section 139(9) Order
The primary issue in this case was whether an appeal against an order passed under section 139(9) of the Income Tax Act, 1961, is maintainable under section 246A of the Act. The CIT(A) had refused to admit the appeal on the grounds that section 246A does not explicitly provide for an appeal against an order under section 139(9).

The assessee argued that section 246A(1)(a) allows for an appeal "against the assessee where the assessee denies his liability to be assessed under this Act," and referenced a precedent case (Deere & Company vs. DCIT) to support their position. However, the Tribunal found no merit in this argument, stating that section 246A is a self-exhaustive provision and does not include any clause for an appeal against a section 139(9) order. The Tribunal upheld the CIT(A)'s decision, citing the Supreme Court's ruling in Commissioner of Customs (Imports), Mumbai vs. M/s. Dilip Kumar And Co. & Ors., which mandates a stricter interpretation of such provisions.

Issue 2: Validity of Treating the Return as Defective
The Tribunal also addressed the validity of treating the return filed by the assessee as defective under section 139(9). The assessee contended that their gross receipts were less than Rs.1 Cr, and thus, they were not liable to get their books audited under section 44AB, making their return valid. However, the Tribunal did not delve deeply into this issue, as the primary focus was on the maintainability of the appeal.

The Tribunal concluded that the CIT(A)'s action in rejecting the assessee's lower appeal against the section 139(9) order as not maintainable under section 246A was correct. The appeal was dismissed on these grounds.

Conclusion:
The Tribunal dismissed the assessee's appeal, upholding the CIT(A)'s decision that an appeal against an order under section 139(9) is not maintainable under section 246A of the Income Tax Act, 1961. The assessee was advised to seek any other appropriate remedy under the law if so advised.

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