Admitted tax compliance under the Income-tax Act can be cured before appeal is decided, allowing merits to be examined.

An appeal under the Income-tax Act could not be rejected for non-payment of admitted tax once that tax had been paid before the matter reached the Tribunal. The statutory condition in Section 249(4)(a) was therefore treated as satisfied, and the Tribunal was justified in remitting the matter to the first appellate authority for decision on merits and verification of payment. The Karnataka HC upheld the Tribunal's direction and rejected the revenue's challenge, confirming that compliance with the admitted-tax requirement can be recognised at the appellate stage when the condition is ultimately met.

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Issues: Whether the first appellate authority was justified in dismissing the assessee's appeal for non-payment of the admitted tax under Section 249(4)(a) of the Income-tax Act, 1961, and whether the Tribunal was right in remitting the matter for decision on merits after the tax was paid.

Analysis: The admitted tax had been paid by the time the matter reached the Tribunal. The statutory requirement under Section 249(4)(a) stood satisfied, and the Tribunal's direction to the first appellate authority to consider the appeal on merits and verify payment of the admitted tax could not be treated as erroneous.

Conclusion: The Tribunal's order was upheld and the revenue's challenge failed.

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