ITAT held that the first appellate authority erred in dismissing...

ITAT held that the first appellate authority erred in dismissing the appeal under s. 249(4)(b) on the ground that no return of income was filed and no tax was deposited. ITAT observed that, in the absence of any established advance tax liability and where the assessee asserts no taxable income, non-filing of return does not trigger the precondition of tax payment for maintainability of appeal. The ex parte assessment having been framed u/s 144 without effective hearing, ITAT restored the entire matter to the file of the AO for de novo consideration. The AO has been directed to examine the assessee's explanations and evidence regarding the impugned cash transactions and pass a fresh speaking order after affording due opportunity of hearing.