Interpreting Section 249(4)(b) of the Income Tax Act: When Non-Payment of Advance Tax Cannot Dismiss an Appeal

Advance tax obligation: absence of taxable income prevents dismissal of appeal for non-payment of advance tax.

The Tribunal held that the advance tax payment condition for appeal maintainability applies only when the assessee had a legal obligation to compute and pay advance tax; in the absence of taxable income no such obligation exists, and an appeal cannot be dismissed solely for non-payment of advance tax. The Tribunal directed that the matter proceed to merits with an opportunity to be heard, stressing that the payment requirement must be applied in light of factual circumstances.