Rohini Enterprises P. Ltd. v. ITO (2024) 112 ITR 39 (SN) (Surat)(Trib.)

S. 249 : Appeal-Commissioner (Appeals)-Form of appeal and limitation-Appeal not to be admitted unless tax is paid-Business loss-No liability to pay advance tax-Section 249(4)(b) not applicable-Appeal to be decided on merits.[S.249(4)(b)]

Allowing the appeal, the Tribunal held that the invocation of section 249(4)(b) by the CIT(A) was incorrect when the assessee had incurred a business loss and had no liability to pay advance tax. In this case, the assessee did not file a return of income (ROI) for the assessment year 2011-12. The assessee had losses during the year. The CIT(A) dismissed the appeal on the grounds that no advance tax was paid as required under section 249(4)(b) when no return of income is filed. The Tribunal held that if an assessee has incurred a loss and had no taxable income, section 249(4)(b) would not apply, as there was no requirement to pay advance tax. The Tribunal restored the appeal to the CIT(A), directing it to be admitted and decided on merits. (AY. 2011-12, 2012-13)