TMI Blog2006 (11) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... n 249(4) of the Act. It is also to be noticed at this stage by us that the appellants, in terms of the material on record have chosen to say in unmistakable terms that they did not have any source to raise funds to make good the tax due at the time of filing the appeal. They have further stated in their statement of objections that in terms of section 249(4) of the Act, the appeal cannot be admitted in the absence of tax on the admitted income. This very statement of the appellants before the authority would go to show that the appellants have failed even according to them to comply with the mandatory requirement of section 249(4) of the Act. Therefore, we are satisfied that there exist no legal errors either in the order of the Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar. They are husband and wife. 3. The premises of the husband Sri D. Rajkumar was searched by the Department under section 132 of the Income-tax Act, 1961 (for short, the Act ). Thereafter, notices under section 158BC of the Act were issued to the assessees namely Smt. D. Komalakshi and Sri D. Rajkumar. In response to these notices, both the appellants filed returns. Smt. D. Komalakshi filed her return, declaring Rs. 19,32,838 as total undisclosed income for the block period. As per the returns, the total tax payable was declared to be Rs. 11,82,896, including surcharge. In the connected appeal, the husband Sri D. Rajkumar declared Rs. 1,07,96,536 as total undisclosed income for the said block period. As per his return, the total tax p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arch operation carried out under section 132 of the Act is bad in law and ab initio void. He would also say that the very jurisdiction of proceeding under section 158BC of the Act was questioned and therefore, there is no admitted tax liability under section 249(4)(a) of the Act. He would also strongly rely on a judgment of this court, reported in T. Govindappa Setty v. ITO [1998] 231 ITR 892 (Karn). He would also rely on a judgment of the Supreme Court reported in Jute Corporation of India Ltd. v. CIT reported in [1991] 187 ITR 688. 6. After hearing, we have carefully perused the material on record. 7. Both the appellants have filed the return after the search and seizure in terms of the material on record. The returns were considere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rded in writing, exempt him from the operation of the provisions of that clause. 10. A reading of this section makes it very clear to us that admission of an appeal is subject to payment of tax due on the income returned and the same has been introduced, probably in the larger interest of the revenue collection by way of payment of admitted tax for the purpose of appeal. It is clear to us that the Commissioner (Appeals), after noticing the material aspects of the matter, has come to the conclusion that the appeal is not maintainable and therefore, did not admit the appeal as per the provisions of section 249(4) of the Act. 11. When the order passed by the Commissioner (Appeals) was challenged before the Tribunal, the Tribunal has acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... good the admitted tax in terms of the returns filed by them for the purpose of consideration of appeals, for which, he wants some breathing time for making such payment. 13. In the normal course, we would not have considered such request from the assessee. However, taking into consideration the facts and circumstances of the case, we deem it proper to accept the submission made by learned counsel for the assessees. We, therefore, give him four (4) weeks time to make over admitted amounts before the authority. If payment is made by the assessees-appellants in terms of this order, the Commissioner (Appeals) shall consider the appeals on merits and pass appropriate orders in accordance with law, without in any way being influenced by the e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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