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TMI BlogInterpreting Section 249(4)(b) of the Income Tax Act: When Non-Payment of Advance Tax Cannot Dismiss an AppealX X X X Extracts X X X X X X X X Extracts X X X X ..... t delivered by the Income Tax Appellate Tribunal (ITAT) concerning the dismissal of an appeal due to non-payment of advance tax u/s 249(4)(b) of the Income Tax Act, 1961 . The judgment addresses a crucial issue regarding the maintainability of an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)] when the assessee has not filed a return of income and has not paid an amount equal to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rgument. On the other hand, the Departmental Representative (DR) relied on the orders of the lower authorities. Discussions and Findings of the Tribunal The ITAT acknowledged that Section 249(4)(b) of the Act requires an assessee who has not filed a return of income to pay an amount equal to the advance tax payable for the appeal to be maintainable before the CIT(A). However, the ITAT observed tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s contention. Analysis and Decision by the Court The ITAT set aside the order of the CIT(A) and restored the matter to the CIT(A)'s file with a direction to dispose of the appeal on merits after affording a reasonable opportunity of being heard to the assessee. The ITAT held that the CIT(A) had erred in dismissing the appeal on the ground of non-compliance with Section 249(4)(b) of the Act, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Act, 1961, is applicable only when an assessee has an obligation to compute and pay advance tax. If an assessee has no taxable income, there is no obligation to pay advance tax, and the CIT(A) cannot dismiss the appeal on the ground of non-compliance with Section 249(4)(b) . The ITAT set aside the CIT(A)'s order dismissing the appeal and restored the matter to the CIT(A) for disposal on meri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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