Non-filing of return does not bar section 260A appeal where a substantial question of law arises.

Non-filing of a return under section 139 or in response to a notice under section 148 does not, by itself, bar an appeal under section 260A against a Tribunal order where a substantial question of law arises. The maintainability objection was rejected because section 260A permits an appeal from every Tribunal order satisfying that legal threshold, and the appeal was admitted on questions of law concerning the assessment and characterisation of receipts.

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Issues: Whether the objection that the appeal was not maintainable because the assessee had not filed a return under section 139 or in response to notice under section 148 of the Income-tax Act, 1961 barred the appeal under section 260A.

Analysis: Section 260A permits an appeal against every order of the Tribunal where the court is satisfied that a substantial question of law arises. The non-filing objection was therefore held to have no merit, and the appeal was admitted on questions of law arising from the assessment and characterisation of the receipts.

Conclusion: The maintainability objection was rejected and the appeal was held to be maintainable.

Ratio Decidendi: Non-filing of a return under section 139 or in response to notice under section 148 does not, by itself, bar an appeal under section 260A against a Tribunal order where a substantial question of law arises.

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