“Section 249(4)”
The decision most relied on for Section 249(4) is Pr. CIT v. Golden Peace Hotels and Resorts (P) Ltd. (124 Taxmann.com 249), cited in 105 judgments on BharatTax.
Leading authorities on Section 249(4)
A penalty levied under Section 271(1)(c) is not sustainable if the notice issued under Section 274 fails to specifically mention whether the charge relates to concealment of income or furnishing inaccurate particulars of income. The Assessing Officer must specify the exact charge for the penalty to be valid.
Income received by a trust from sources like extra fees can be taxed at the maximum marginal rate, while other income remains eligible for exemption under Section 11 of the Income Tax Act.
Reassessment proceedings under Section 148 of the Income Tax Act cannot be initiated unless the assessment proceedings based on a previously filed return have been terminated. Notice for reassessment cannot be issued while original assessment proceedings are pending.
Evidence collected during an illegal search can still be used against the assessee. An assessment made based on such evidence is valid.
The right of appeal is conferred by statute and should be interpreted liberally and practically. Whether a right to appeal is available should be guided by the form, not the substance, of the order.
An assessee's appeal should be admitted if they incurred a loss and were therefore not liable to pay advance tax as required by section 249(4)(b). In such cases, the appeal should be decided on its merits by the CIT(A).
Admission of an appeal before the CIT(A) is subject to the mandatory condition of payment of tax due on the income returned by the assessee.
An assessee is not obligated to compute and pay advance tax under sections 208 and 209 if they have no taxable income. Consequently, an appeal should not be dismissed for non-payment of advance tax in such circumstances.
