TaxTMI 
TaxTMI 
2025 (9) TMI 436
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....he Income Tax Act, 1961 (hereinafter referred to as the "Act") and relates to Assessment Year (A.Y.) 2017-18. 2. The brief facts relating to the case are that no return of income was filed by the assessee however On the basis of information in the possession of the AO that the assessee had purchased immoveable property for Rs. 4,26,00,000/-, the case of the assessee was reopened for the impugned year by issuing notice u/s. 148 of the Act. The assessee, however, did not respond to any notice issued to him. The assessee was also noted to be a non-filer of return of income. Having not filed return of income for the impugned year and in the absence of any assistance or cooperation by the assessee during assessment proceedings, the AO acted u....
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....ngly, this section does not apply and order passed by AO confirmed by N FAC is required to be quashed. 4. Ld. N FAC ought to have considered fact that appellant neither sold any l and nor receive any consideration and accordingly, addition made by AO confirmed by NFAC is required to be quashed. 5. Ld. NFAC erred in law and on f acts in invoking section 249(4) of the Act ignoring fact that appellant has no taxable income and accordingly not liable for filing return of income. 6. Ld. N FAC failed to pass order as per the provision of section 250(6) of the Act and appellant prays that same may be set aside to the file of CIT(A)/NFAC for read-judication. 7. Ld. NFAC erred in upholding in vocation of section 1....
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....the Act was also deducted @ 1% of the sale consideration by the purchasing party from his brother's PAN. It was contended that the assessee was only a confirming party and did not get a single rupee from the sale transaction. The assessee, therefore, contended that considering the facts of the case, if the delay in filing of the present appeal were not condoned, the cost to be paid by the assessee would be very heavy since he would be held liable to pay taxes on the addition made to his income to the income of Rs. 4.26 Crore, which would be highly unjust considering that neither the assessee had made any investment nor did he have any source for making such investment of huge amount or for paying any taxes thereon. Ld. Counsel for the asses....
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....of Rs. 1.06 Crore on which TDS was also deducted by the purchasing party on his brothers PAN and that the assessee was only a confirming party to the said transaction. 8. Since, these pleadings were made by the assessee on the first occasion before the Ld. CIT(A), we are of the considered view that the assessee being totally unaware of income tax proceedings, it is not highly improbably, that he was unaware of passing of the CIT(A) order which, accordingly, resulted in the delay in filing the present appeal before us by 198 days. Moreover, the assessee has not been heard at any stage both before the AO and the Ld. CIT(A) and the contention of the assessee has been that he had nothing to do with any transaction relating to immovable prope....
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....ion and payment of advance tax. And on perusal of the said sections it is abundantly clear that suo moto computation of advance tax liability of assesses is based on estimation of current years income and tax liability thereon and where the AO calculates advance tax liability, the same is based on latest previous year income assessed of the assessee or any subsequent year income returned by the assessee whichever is higher. Section 208 & 209 of the Act are reproduced hereunder for clarity: Conditions of liability to pay advance tax. 208. Advance tax shall be payable during a financial year in every case where the amount of such tax payable by the assessee during that year, as computed in accordance with the provisions of t....
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....income-tax thereon shall be calculated at the rates in force in the financial year; (d) the income-tax calculated under clause (a) or clause (b) or clause (c) shall, in each case, be reduced by the amount of income-tax which would be deductible or collectible at source during the said financial year under any provision of this Act from any income (as computed before allowing any deductions admissible under this Act) which has been taken into account in computing the current income or, as the case may be, the total income aforesaid; and the amount of income-tax as so reduced shall be the advance tax payable:" 11. In any case, logically also, the liability relates to payment of taxes in advance (advance tax liability) and the same....