TMI Blog2018 (12) TMI 1061X X X X Extracts X X X X X X X X Extracts X X X X ..... st the order of assessment should be admitted and adjudicated by the CIT(Appeals) on merits. If the admitted taxes are paid at a later point of time, then the appeal of the assessee should be considered as properly instituted and should be heard and decided by the CIT(Appeals) on merits. We set aside the order of CIT(Appeals) and direct the CIT(A) to decide the appeal on merits, subject to verification of payment of taxes due on the returned income. Assessee is allowed for statistical purposes. - ITA No.564/Bang/2018 - - - Dated:- 20-11-2018 - Shri N.V. Vasudevan, Vice President And Shri Inturi Rama Rao, Accountant Member For the Appellant : Shri Sreehari Kutsa, CA For the Respondent : Dr. P.V. Pradeep Kumar, Addl.CIT(DR)(ITAT) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts referred to in the said application for condonation of delay. 4. As far as the merits of the appeal are concerned, the ld. counsel for the assessee submitted before us that the CIT(Appeals) has not decided the appeal of the assessee on merits for the reason that the taxes due on the returned income was not paid by the assessee. The assessee filed before us challans evidencing the payment of taxes on the income declared in the return of income. The ld. counsel for the assessee submitted that since the taxes due on the returned income are paid, the appeal should be admitted for adjudication. On the other hand, the ld. DR submitted that the payment of taxes needs to be verified. 5. We have considered the rival submissions. The provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved and the status of validity is attached. The Tribunal relied on the following decision in coming to the above conclusion: M.L. Srinivasa Setty Sons vs. State of Karnataka (1991) 99 CTR (Kar) 77 : (1992) 193 ITR 548 (Kar) and CIT vs. Trehan Enterprises (2001) 168 CTR (J K) 274 : (2001) 248 ITR 333 (J K). The Tribunal thereafter observed that appeal filed without paying tax due on returned income is only defective, but not void. Thus, if tax is paid on the income returned, either before or at the time of or after the filing of return, it will be sufficient compliance with the provisions of sub s. (4) of s. 249. The prerequisite is that the payment of such tax, in the category of cases in which tax is paid after the filing of return, sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that all the consequences which follow on the removal of defect are that the validity is attached to the appeal from the date when it was originally filed and not when the defect is removed. The Tribunal ultimately held that if tax due on income returned is paid even after disposal of the appeal by the CIT(A), if such payment is made the defect in the appeal due to noncompliance of a directory requirement of paying such tax before the filing of the appeal, stood removed. Ex consequenti the appeal should have been revived by the first appellate authority. 7. In the present case, the taxes due on returned income is claimed to have been paid. Therefore, the appeal by the Assessee against the order of assessment should be admitted and ad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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