2025 (2) TMI 1242 - AT - Income Tax

Appeal restored after lower authority rejected case over unspecified advance tax despite NRI claiming non-taxable income

ITAT observed that the lower authority refused to entertain the appeal without stating the exact advance tax liability, despite the assessee's contention ... Payment of advance tax u/s. 249(4)(b) - Ld counsel submits that the assessee holds the status of as “NRI” in the impugned assessment year; and his income earned in India was much below the taxable limit - HELD THAT:- CIT(Appeals) has refused to entertain the assessee’s lower appeal even without indicating as to what was the exact amount of assessee’s advance tax liability. Faced with this situation, we deem it appropriate to restore this assessee’s appeal back to CIT(A) for his fresh adjudication on merits preferably within three effective opportunities subject to a rider that the assessee shall plead and prove his case, at his own risk and responsibility. Assessee’s appeal is allowed for statistical purposes. Appeal against CIT(A)-NFAC order dated 31.01.2024 under section 147 r.w.s. 144 of the Income-tax Act, 1961 for AY 2018-19. Lower authority refused to condone 45 days' delay in filing the appeal against assessment order dated 09.02.2023; delay attributed to assessee's employment in the Merchant Navy and absence from India causing communication failure. Delay was condoned relying on Collector, Land Acquisition vs. Mst. Katiji & Ors., (1987) 167 ITR 471 (SC), and the tribunal 'condone[d] the impugned 45 days' delay.' CIT(A)-NFAC thereafter refused to entertain the appeal for want of payment of advance tax under section 249(4)(b). Assessee claimed status as 'NRI' and that India-sourced income was below the taxable limit; CIT(Appeals) did not indicate the exact advance tax liability. Tribunal restored the appeal to the CIT(A) for fresh adjudication on merits, preferably within three effective opportunities, with the rider that the assessee shall plead and prove his case 'at his own risk and responsibility.' Appeal allowed for statistical purposes.