Appeal Dismissed for Non-Compliance with Advance Tax Payment Rules; Deduction Claim Must Be in Return.

The ITAT Pune upheld the NFAC's decision to dismiss the assessee's appeal due to non-compliance with S. 249(4)(b) concerning advance tax payment. The Tribunal found no merit in the assessee's argument regarding the deduction u/s 80P, emphasizing that it must be claimed in a return. Consequently, the appeal was dismissed.

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Issues involved:
The issues involved in this judgment are (1) non-compliance with the requirements of S. 249(4)(b) regarding advance tax payment before filing an appeal, and (2) the disallowance of deduction u/s 80P of the Income Tax Act.

Issue 1: Non-compliance with S. 249(4)(b) regarding advance tax payment:
The assessee appealed against the National Faceless Appeal Centre's decision not to admit the appeal due to alleged non-compliance with S. 249(4)(b) regarding advance tax payment. The assessee argued that as a cooperative credit society eligible for deduction u/s 80P, its entire income is eligible for deduction, hence no advance tax liability exists. The counsel for the assessee contended that the assessee should not be held liable for advance tax on income not assessable under the Act. However, the Tribunal found no merit in the assessee's argument, stating that the deduction u/s 80P must be claimed in a return as per sec. 80A(5) of the Act, which was not done by the assessee in this case. As there was no evidence of the assessee raising the sec. 80P claim in a return, the Tribunal upheld the NFAC's decision to dismiss the appeal u/s 249(4)(b) of the Act.

Issue 2: Disallowance of deduction u/s 80P:
The assessee also contested the disallowance of deduction u/s 80P of the Income Tax Act. The learned DR disputed the assessee's deduction claim u/s 80P. After considering both sides, the Tribunal found no merit in the assessee's argument to deny advance tax liability based on sec. 80P. The Tribunal emphasized that the sec. 80P deduction must be claimed in a return, which was not done by the assessee. Therefore, the Tribunal dismissed the assessee's appeal on this ground as well.

In conclusion, the Appellate Tribunal ITAT Pune upheld the decision of the National Faceless Appeal Centre regarding the non-admittance of the appeal due to non-compliance with advance tax payment requirements and the disallowance of deduction u/s 80P. The assessee's appeal was dismissed accordingly.

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