Vikram Singh vs. ITO Noida: Appeal Remanded to CIT(A) for AY 2010-11 in Light of Section 249(4) Compliance

Vikram Singh vs. ITO Noida: Appeal Remanded to CIT(A) for AY 2010-11 in Light of Section 249(4) Compliance

Case Number: ITA 6559/DEL/2019
Assessment Year: 2010-11
Filed Date: 2019-08-07
Order Date: 2023-02-21
Pronounced On: 2023-02-21

Background:

The case involves an appeal filed by Vikram Singh, a resident of Gautam Budh Nagar, against the Income Tax Officer (ITO), Ward-2(5), Noida, for the assessment year 2010-11. The appeal was lodged following an assessment order passed under Sections 144 and 147 of the Income Tax Act, 1961, which added a long-term capital gain of Rs. 1,31,17,537 to the appellant’s income after concluding that the land sold by him was a capital asset.

Why the Case Was Filed:

The appellant, Vikram Singh, contested the assessment order, arguing that the land sold was agricultural land situated 12 kilometers away from the local limits of Dadri Municipality and hence did not qualify as a capital asset under Section 2(14) of the Income Tax Act. Furthermore, Singh did not file a return of income or furnish a PAN for the assessment year 2010-11, which led to the issuance of a show-cause notice under Section 144 of the Act. The CIT(A) dismissed the appeal on the grounds of non-compliance with Section 249(4) of the Income Tax Act, which mandates the payment of tax due at the time of filing an appeal.

Tribunal’s Findings:

1. Section 207 Exemption:

The appellant argued that he was a senior citizen (born on March 5, 1924) and therefore was not liable to pay advance tax under Section 207 of the Income Tax Act, as he did not have any income under the head “Profits and Gains of Business or Profession.” The appellant provided a copy of his PAN card and Aadhar card as evidence of his age, claiming exemption from the provisions of Section 249(4) of the Act.

2. Section 249(4) Compliance:

The Revenue, represented by Shri Mrinal Kumar Dass, Sr. DR, argued that the appellant was required to pay the tax due before filing the appeal, as per Section 249(4)(b) of the Act, since no return of income was filed for AY 2010-11. The CIT(A) dismissed the appeal based on this non-compliance without considering the appellant’s claim for exemption under Section 207.

3. Tribunal’s Decision:

The ITAT Bench, consisting of Shri G.S. Pannu, Hon’ble President, and Shri Anubhav Sharma, Judicial Member, concluded that the CIT(A) failed to consider whether the appellant was eligible for an exemption under Section 207 from the requirements of Section 249(4). The Bench noted that the appellant was not given a fair opportunity to present his case, as the appeal was dismissed in absentia.

Conclusion:

The ITAT set aside the order of the CIT(A) and remanded the case back to the CIT(A) for a fresh decision on the applicability of Section 249(4) in light of the appellant’s claim for exemption under Section 207. The Tribunal directed the CIT(A) to give Vikram Singh an opportunity to present his case and to make a reasoned decision based on the facts and evidence provided.

Order Pronounced in Open Court: 21st February 2023

Bench: Shri G.S. Pannu, Hon’ble President, and Shri Anubhav Sharma, Judicial Member

Vikram Singh vs. ITO Noida: Appeal Remanded to CIT(A) for AY 2010-11 in Light of Section 249(4) Compliance