Indigency for appeal fee exemption fails where the applicant has means above the statutory threshold; appeals remain non-maintainable.

Section 253(6) of the Income-tax Act requires payment of the prescribed appeal fee, and exemption is available only where the applicant satisfies the statutory test of indigency under Order XXXIII of the Code of Civil Procedure. The article applies the definition of an indigent person and the power to scrutinise and reject such a claim under Order XXXIII Rules 4(1) and 5(2). On the stated facts, a practising lawyer with means above the threshold could not be treated as destitute or a pauper, and the alleged frivolity of the tax demands was irrelevant to the indigency enquiry. The appeals were therefore not maintainable without payment of the fee.

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Issues: Whether the assessee was entitled to exemption from payment of appeal fee on the ground of indigency and, consequently, whether the appeals were maintainable without compliance with section 253(6) of the Income-tax Act, 1961.

Analysis: Section 253(6) required payment of the prescribed appeal fee. The claim for exemption was examined by reference to Order XXXIII of the Code of Civil Procedure, 1908, which protects only a person who satisfies the statutory test of indigency. The definition of indigent person and the power to examine and reject such a claim under Order XXXIII Rules 4(1) and 5(2) were applied. On the facts, the assessee was a practising lawyer, had disclosed means far above the statutory threshold, and could not be treated as a destitute or pauper. The asserted frivolity of the underlying tax demands did not bear on the statutory test for indigency.

Conclusion: The assessee was not entitled to exemption from payment of appeal fee and the appeals were not maintainable without payment of the prescribed fee.

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