INCOME TAX ACT, 1961

Section 250

Appeal (CIT(A) - Non-admittance of appeal due to failure in depositing tax dues - Funds pleaded to be blocked due to seized jewellery and attachment of property -

Assessee was aggrieved by non-Admittance of her appeal by CIT(A). Assessee contended that during search action, revenue seized jewellery of an amount much higher than tax and interest liabilities. She further contended that refusal to admit appeal on ground that she did not deposit tax liability was prejudicial to her interests as due to immovable property provisionally attached under section 281B and seized jewellery, situation was beyond control of assessee, who did not have enough cash liquidity to pay the tax dues. Held: Assessee was deceased and appeal was represented by legal heir of assessee. Admittedly, taxes were not paid by assessee along with return of income; though repeated pleas, were raised before revenue authorities below to sell gold ornaments seized and adjust sale proceeds against the tax payable by assessee, but no such exercise was carried out by revenue department. Thereafter, assessee claimed that she sold house property and paid taxes due with interest on returned income before her death. Thus, especially where assessee had demised, it was deemed fit to admit appeals of assessee and decide issue on merits.

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2006-07

INCOME TAX ACT, 1961

Section 143(3)

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