When an order raised under Sec 143(3) is appealed against, as provided under Sec 246, is it necessary that 50% of the disputed amount has to be paid on demand, before the Appeal is considered?
249 (4) requires only tax on income returned or tax payable as advance tax be paid, for admission of an appeal. Payment of disputed tax is not a condition for admission of an appeal. However the AO could hold the assessee as an 'assessee in default' on account of non payment demand. Therefore, it is essential a stay application is filed before him. Mere filing of an appeal does not result in stay on the collection.