2010 (4) TMI 14

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....hould be dismissed as not maintainable. In this connection, reliance was placed by the Department in support of it's preliminary objection on Section 249(4)(a) of the Income Tax Act, 1961 [Rs. 1961 Act', for short]. The Revenue invited the attention of the Income Tax Appellate Tribunal [`Appellate Tribunal', for short] to letter dated 19th October, 2001, wherein it was stated that the assessee had paid a sum of Rs.22,63,600/- before filing of the appeal out of Rs.26,47,800/- payable by the assessee in terms of his Block Returns. Before the Appellate Tribunal, the assessee objected to the above contention of the Department on the ground that Section 249(4) of 1961 Act cannot be read into Section 253(1)(b) which deals with the Appeals to the ....

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....bunal. Hence, these civil appeals. 3. At the outset, we may state that, in these civil appeals, we are concerned with Block Period 1986-1987 to 14th September, 1995. This aspect is important because the law has since undergone several changes, particularly after 1st October, 1998, in the matter of grant of stay by the Appellate Tribunal under Section 253(7) of 1961 Act, which sub-section did not exist during the relevant period. Hence, this judgement is confined to the period prior to 1st October, 1998. 4. None appears for the assessee, though served. 5. The basic argument advanced by Shri V. Shekhar, learned senior counsel appearing on behalf of the Department, before us, was that Section 249(4), inter alia, states that no appeal under ....

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....ed to pay the admitted tax due on the income returned by him in terms of Section 249(4)(a) of 1961 Act as condition precedent failing which his appeal was not maintainable. Consequently, according to the learned counsel, in the present case, since the assessee had failed to pay the tax due on the income returned by him, his appeal to the Appellate Tribunal under Section 253(1)(b) should have been dismissed as not maintainable. 6. We find no merit in the above arguments. At the outset, we may reiterate that, in these civil appeals, we are concerned with the period prior to 1st October, 1998. This judgment is confined strictly to the Block Period 1986-1987 to 14th September, 1995. 7. Chapter XX deals with "Appeals and Revisions". Chapter XX....

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....ect from 1st July, 1995. The very concept of Block Assessment came to be inserted in the Income Tax Act, 1961, vide Finance Act, 1995, with effect from 1st July, 1995, whereas the words "this Chapter" in Section 249(4) came to be inserted in the Income Tax Act, 1961, vide Taxation Laws (Amendment) Act, 1975, with effect from 1st October, 1975. This is one more reason to confine the expression "this Chapter" in Section 249(4) to Chapter XX(A) without it being extended to Section 253(1)(b) which is there in Chapter XX(B). Further, under the Scheme of Chapter XX, as stated above, no appeal under Section 249(4)(a) in Chapter XX(A) was admissible without the assessee having paid the admitted tax due on the income returned by him. It appears that....