Advance tax pre-condition for appeal admission requires proper computation and hearing before dismissal under section 249(4)(b).

Section 249(4)(b) requires payment of advance tax only where the liability is computed, while the proviso permits the Commissioner (Appeals) to grant exemption on a showing of good and sufficient reasons. The Tribunal noted that neither the assessee nor the Assessing Officer had made any computation of advance tax under section 209(1), and that the assessee had stated in Form 35 that the provision did not apply. In those circumstances, the Commissioner (Appeals) ought to have given an opportunity to explain the position or considered any exemption request under the proviso rather than treating the appeal as not admissible.

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Issues: Whether the Commissioner (Appeals) was correct in treating the appeal as not admissible under section 249(4)(b) of the Income-tax Act, 1961 for non-payment of an amount equal to advance tax without calling for an explanation or considering an application under the proviso to section 249(4).

Analysis: The sole question turns on the pre-condition in section 249(4)(b) requiring payment of an amount equal to the advance tax where no return is filed and the proviso permitting the Commissioner (Appeals) to exempt an appellant on an application stating good and sufficient reasons. The Tribunal examined whether any computation of advance tax had been made by the assessee or the Assessing Officer under section 209(1). It found there was no calculation by either party and that the assessee had represented in Form-35 that the obligation to pay advance tax was not applicable. Given the absence of any advance tax computation, the CIT(A) should have afforded the assessee an opportunity to explain or should have considered any application for exemption under the proviso instead of summarily dismissing the appeal as infructuous.

Conclusion: The appeal is set aside to the file of the Commissioner (Appeals) with a direction to consider the assessee's claim regarding non-applicability of section 249(4)(b), to afford the assessee an opportunity of hearing, and if satisfied or on grant of exemption under the proviso, to admit and decide the appeal on merits. The Tribunal allowed the appeal for statistical purposes in favour of the assessee.

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