TMI Blog2019 (8) TMI 921X X X X Extracts X X X X X X X X Extracts X X X X ..... earlier defective appeal becomes valid. Once we call an appeal as valid, it is implicit that it is not time-barred. It implies 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 consequential the appeal should have been revived by the first appellate authority. In the present case, the taxes due on returned income is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of assessee at ₹ 2,76,94,769. The sum determined as total income by the Assessing Officer (AO) was based on a return of income filed by the Assessee on 19-03-2014 in which the Assessee had declared the aforesaid total income. Since the Assessee did not pay the tax payable on the income so returned, the return filed was considered as defective and a notice u/s.139(9) of the Act was issued calling upon the Assessee to show cause as to why the return of income filed should not be treated as defective. The Assessee sought time to pay the tax due on returned income but the said request was refused by the AO. The AO proceeded to determine the total income u/s.144 of the Act to the best of his judgement and adopted the total income of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ( a) Where a return has been filed by the assessee, the assessee has paid the tax due on the income returned by him; or ( b) where no return has been filed by the assessee, the assessee has paid an amount equal to the amount of advance tax which was payable by him : Provided that, in a case filling under Clause (b) and on an application made by the appellant in this behalf, the CIT(A) may, for any good and sufficient reason to be recorded in writing, exempt him from the operation of the provisions of that clause. 6. The Hon ble Karnataka High Court in the case of CIT Vs. K.Satish Kumar Singh 2012 209 Taxman 502(Karn.) and in the case of Principal CIT Vs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, should be before the admission of first appeal. In case such tax is not paid upto the filing of appeal before the CIT(A), the same shall not be admitted. In other words if the appeal is to be admitted by the first appellate authority, it is sine qua non that the assessee must have made the payment of tax on the income returned. If no payment of tax on the income returned is made at all and the appeal is filed, that cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the filing of the appeal, stood removed. Ex consequential 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 has been paid. Therefore the appeal by the Assessee against the order of assessment should be admitted and adjudicated by the CIT(Appeals) on merits. In the decision referred to above, it has been held that 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. Following the aforesaid decision, we set aside the order of CIT(Appeals) and direct the CIT(Appeals) to decide the appeal on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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