Section 249(4) exemption allowed where admitted tax was later paid and delay arose from financial difficulty.

Non-payment of the admitted tax at the time of filing did not prevent the appeals from being entertained because substantial payments had already been made, the remaining tax was paid before hearing, and the delay was attributable to financial difficulty rather than deliberate evasion. On those facts, discretion was exercised to exempt the assessee from the operation of section 249(4) of the Income-tax Act, 1961, and the appeals were required to be admitted.

---

---

Issues: Whether the assessee should be exempted from the operation of section 249(4) of the Income-tax Act, 1961 and the appeals entertained despite non-payment of the admitted tax at the time of filing.

Analysis: The admitted tax had not been paid in full when the appeals were filed, but substantial payments had been made both during the previous year and after filing of the appeals. The delay in payment was found to be attributable to financial difficulties and not to a deliberate attempt to evade payment. The admitted tax was also paid before the appeals were taken up for hearing, making the case fit for exercise of discretion in favour of exemption.

Conclusion: The assessee was entitled to exemption from the operation of section 249(4), and the appeals were required to be entertained.

---