Top Stories Non-Payment of Advance Tax Not Ground for Appeal Dismissal: ITAT Remands Case for Fresh Adjudication [Read Order] The tribunal held that if the assessee believes no advance tax is payable, the CIT(A) must admit the appeal and adjudicate it on merits and ruled that Non payment of Advance Tax not a ground for Dismissal of appeal By Franklin Joshva – On May 29, 2025 4:04 pm – 2 mins read The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has remanded a case involving an addition of Rs. 1,45,39,000 back to the Commissioner of Income Tax (Appeals) [CIT(A)] for fresh adjudication, emphasizing that non-payment of advance tax cannot justify the dismissal of an appeal without considering its merits. Sahyogh Nagri Sahkari, (assessee) a co-operative credit society faced scrutiny for the Assessment Year (AY) 2014-15. The Income Tax Department identified cash deposits amounting to Rs. 1,45,39,000 in the society’s bank account with Chickly Urban Co-operative Bank Ltd. The assessee had not filed its Income Tax Return (ITR) for AY 2014-15.

The Assessing Officer (AO) reopened the case and issued a notice under Section 148 of the Income Tax Act, to the assessee. Read More: ITAT Sets Aside Rs.1.25 Crore Penalty on UP State Bridge Corp, Orders Fresh Review Linked to Pending Quantum Appeal [Read Order] Know the complete aspects of tax implications of succession, Click here The assessee filed a belated return declaring nil income, claiming deductions under Chapter VI-A, but did not respond to notices issued by the AO. The AO completed the assessment ex-parte and treated the entire cash deposit as unexplained money under Section 69A read with Section 115BB of the Income Tax Act. Aggrieved by the AO’s order, the assessee filed an appeal to the Commissioner of Income Tax (appeals)[CIT(A)].

The CIT(A) dismissed the appeal without adjudication, citing non-payment of advance tax as required under Section 249(4)(b) of the Income Tax Act. Aggrieved by the CIT(A)’s order, the assessee filed an appeal ITAT. The Counsel for the assessee argued that as a co-operative society, its business income was eligible for deductions under Sections 80P(2)(a)(i) and 80P(2)(d), which were not considered due to the ex-parte assessment. Complete Ready to Use PDFs of 200+ Agreements Click here

The two-member bench comprising Manish Borad (Accountant Member) and Vinay Bhamore (Judicial Member) observed that the CIT(A) erred in dismissing the appeal solely on the ground of non-payment of advance tax. The tribunal held that if the assessee believes no advance tax is payable, the CIT(A) must admit the appeal and adjudicate it on merits. The tribunal set aside the CIT(A)’s order and remanded the matter to the CIT(A) with directions to admit the appeal and adjudicate it on merits after providing the assessee a reasonable opportunity to present its case. Read More: ITAT Orders Re-Examination of Rs.83 Lakh Dispute for Shipping Firm, Cites Contingent Liability Error [Read Order] The tribunal also directed the assessee to comply with all notices issued by the CIT(A) without seeking adjournments, failing which the CIT(A) could pass an appropriate order as per law. The appeal of the assessee was allowed for statistical purposes.