Advance tax precondition not met where taxable income was nil; appeal could not be rejected under section 249(4)(b).

Non-payment of advance tax could not justify rejection of the appeal where the assessee disclosed only agricultural receipts and sale of agricultural land, claimed nil taxable income, and therefore had no advance tax liability under sections 207, 208, 209 and 210. In those circumstances, the precondition in section 249(4)(b) was not attracted, and the first appellate authority was required to admit the appeal and decide it on merits. The proviso concerning exemption from the filing requirement was unnecessary to invoke because the statutory bar itself did not apply.

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Issues: Whether the first appellate authority was justified in rejecting the appeal under section 249(4)(b) of the Income-tax Act, 1961 for non-payment of advance tax when the assessee claimed nil taxable income and no advance tax liability.

Analysis: The assessee had disclosed that the receipts were from agriculture and sale of agricultural land and that the taxable income for the year was nil. On that basis, the computation of advance tax under sections 207, 208, 209 and 210 was held to be nil. The Tribunal noted that the assessee had also stated before the first appellate authority that no return of income had been filed because there was no taxable income. In these circumstances, the precondition in section 249(4)(b) was found not to be attracted, and the proviso relating to exemption from the requirement was held unnecessary to invoke.

Conclusion: The rejection of the appeal for non-payment of advance tax was held to be unsustainable, and the appeal was required to be admitted and decided on merits.

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