Mandatory prepayment of tax on returned income is required before filing an income-tax appeal; later payment cannot cure defect.

Section 249(4)(a) of the Income-tax Act was treated as a mandatory precondition for filing an appeal where a return had been submitted: the assessee had to pay the tax due on the returned income before the appeal was filed. Later payment after filing did not cure the defect, because the requirement was viewed as substantive rather than procedural. Authorities allowing relief under the unamended regime, or where condonation was available, were distinguished. On that basis, non-compliance rendered the appeal not maintainable, and the first appellate authority's dismissal was upheld.

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Issues: Whether the assessee's appeal before the first appellate authority was maintainable in the absence of payment of tax due on the income returned before filing the appeal under section 249(4)(a) of the Income-tax Act, 1961.

Analysis: The statutory language required that where a return had been filed, the assessee must have paid the tax due on the income returned at the time of filing the appeal. The provision was treated as mandatory and substantive, not merely procedural. The later payment of tax after the appeal had been filed could not cure the defect. The earlier authorities relied upon by the assessee were distinguished as arising under the unamended regime or under provisions where discretion to condone the default existed. The Tribunal also held that the legislative purpose of the amendment was to ensure compliance by requiring payment of tax on the returned income before the appeal could be entertained.

Conclusion: The appeal was not maintainable for non-compliance with section 249(4)(a), and the dismissal by the first appellate authority was upheld.

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