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2014 (11) TMI 344 - AT - Income TaxMaintainability of appeal u/s 249(4) – Admission of appeal - Payment of Admitted tax made or not – Held that:- The only requirement of section 249(4) is payment of tax due on returned income and there is no time limit prescribed for payment of such taxes - The CIT(A) can use his discretionary power and admit the appeal if he is satisfied about the liquidity crunch or any other reasonable cause for non-payment of taxes - sub-section (4) of section 249 pertains to those assessees who have defaulted in payment of tax or did not file the return - as per section 249(4) of the Act no appeal before CIT(A) should be admitted unless at the time of filing of the appeal, where a return has been filed by the assessee, tax due on the income returned has been paid - In this sub-section, there is a clause (b) which is in respect of a condition where no return at all has been filed by the assessee - A Proviso underneath the section also prescribes that the cases falling under the said clause (b), the CIT(A) can grant exemption from the operation of the clause - An inference can be drawn on combined reading of both the sub-clauses of sub-section (4) of section 249 that in case of default of non-payment of tax an appeal is not to be admitted, but on removal of the defect of non-payment of tax an appeal deserves to be admitted and in one of the condition the assessee can be granted exemption by the CIT(A) – thus, the order of the CIT(A) is set aside and remanded back with a direction to admit the appeal – Decided in favour of assessee.
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