TaxTMI 
TaxTMI 
TaxTMI 
2015 (7) TMI 284
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....n fact in not annulling/quashing the proceedings under Chapter XIB of the aforesaid Act and the assessment made u/s. 158BC(C)/143(3) in spite of the fact that the assumption of jurisdiction u/s.132 was illegal and without the authority of law. Without prejudice to the above grounds: 4. For that, on the facts and in the circumstances of the case, the ld CIT(A) has erred in law and in fact in not hearing and disposing of the appeal of the appellant along with the related appeals preferred by her son Shri Dinesh Shankar Pegu and her husband Shri Ananda Chandra Pegu for the same block period pending before him when the issues involved were ex-facie inter linked, inter-faced and inter-related in all the three appeals. 5. For that, on the facts and in the circumstances of the case, the ld CIT(A) has erred in law and in fact in sustaining the assessment order determining the 'undisclosed income' of the appellant at Rs. 14,35,652/- as against the 'undisclosed income' of Rs. 38,33,2607- returned by her. 6. For that, on the facts and in the circumstances of the case, the ld CIT(A) has erred in law and in fact in sustaining the assessment order wherein, the AO had held tha....
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....ration determining the total 'undisclosed income' of the assessee at Rs. 14,35,652/-. 4. Aggrieved by the order of the Assessing Officer, the assessee preferred an appeal before the ld CIT(A), who vide his order dated 19.3.2007 dismissed the appeal of the assessee in limine as per section 249(4) of the Act. The relevant observations made by the ld CIT(A) in para 2 of the impugned order are reproduced herein-below: "The submissions have been considered. The provision of section 249(4) is very clear. In case where the return has been filed by the assessee and assessee has not paid the tax due on the income returned by him/her, the CIT(A) shall not admit such appeal. But the introduction of the provisions of section 249(4), the Legislature intended that where the assessee has taken the advantage of appeal under chapter -XX, he should pay at least tax liability before the appeal is admitted. The provision was not merely procedural but in reality and truly the provision whittles down the statutory right itself. From the perusal of the assessment order and calculation of tax there was no valuable assets seized in the hands of the appellant or even belonging in the name of the a....
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.... 14,38,565/-. Ld counsel for the assessee pointed out that the assessed income was below the returned income and, therefore, the shortfall of Rs. 8,63,520/- did not exist and after adjustment of seized assets, no tax remained payable. Accordingly, Id counsel for the assessee submitted that the payment of undisputed tax liability before filing the appeal stands fulfilled in this case and, therefore, the provisions of section 249(4) of the Act are not attracted. He submitted that the order of the ld CIT(A) may be set aside. 8. On the other hand, Shri C. Deepak Singh, ld Departmental Representative strongly supported the order of ld CIT(A). Ld D.R. further submitted that from the perusal of assessment order and calculation of tax, it would be clear that no valuable assets have been seized belonging to the assessee at the time of search. He further submitted that in fact, proceedings under section 158BD were initiated in this case. Neither any assets belonging to the assessee had been seized nor there was any scope for application of seized assets u/s.132B of the Act. Ld D.R. pointed out that the ld CIT(A) has correctly observed that the seizure made the case of in any other person an....
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....rial on record to controvert the above observations of ld CIT(A). Admittedly, the assessee has furnished the return of income for the block period under consideration declaring 'undisclosed income' at Rs. 26,73,303/- as it is evident from the copy of return dated 11.5.2001 submitted before the Assessing officer. It appears that the assessee filed an application dated 9.5.2001 alongwith return of income stating that the cash and other valuables standing in her name and/or admitted as in the return may be adjusted against her admitted tax liability. However, there is no truth in the said application. It is observed that during the course of search no cash and other valuables were seized belonging to the assessee. It is apparent from the record that the assessee had failed to pay tax due on the income returned at the time of filing the return or even before filing of appeal or even at the time when appeal was heard by the ld CIT(A). Thus, as per the requirements of section 249(4)(a) of the Act, paying of tax due on income returned at the time of filing was not complied with by the assessee and, therefore, the ld CIT(A) has correctly refused to admit the appeal of the assessee ....
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....appeal is subject to payment tax due on the income returned and the same has been introduced, probably in the larger interest of the revenue collection by way of payment of admitted tax for the purpose of appeal. It is clear to us that the Commissioner (Appeals), after noticing the material aspects of the matter, has come to the conclusion that the appeal is not maintainable and therefore, did not admit the appeal as per the provisions of section 249(4) of the Act. 11. When the order passed by the Commissioner (Appeals) was challenged before the Tribunal, the Tribunal has accepted the order of the Commissioner. From a reading of the order of the Commissioner and the Tribunal, it is clear to us that tax due at the time of filing of appeal was not made over in terms of section 249(4) of the Act. It is also to be noticed at this stage by us that the appellants, in terms of the material on record have chosen to say in unmistakable terms that they did not have any source to raise funds to make good the tax due at the time of filing the appeal. They have further stated in their statement of objections that in terms of section 249(4) of the Act, the appeal cannot be admitted in the absen....