Top Stories Non-Payment of Advance Tax Makes S.249(4)(b) of Income Tax Act Inapplicable: ITAT [Read Order] The tribunal held that since no return was filed and no income admitted, there was no advance tax liability under Section 249(4)(b). By Sneha Sukumaran Mullakkal – On May 22, 2025 10:24 am – 2 mins read The Delhi Bench of Income Tax Appellate Tribunal(ITAT) ruled that non-payment of advance tax makes Section 249(4)(b) of the Income Tax Act,1961 inapplicable. Sangeet Kathuria,appellant-assessee,did not file a return of income for AY 2015–16.

Based on information from the Insight Portal under the Non-filers Monitoring System (NMS), the Income Tax Department found that the income exceeded Rs. 15 lakhs, but no return was filed. Want a deeper insight into the Income Tax Bill, 2025? Click here A notice under Section 148 was issued on 08.04.2022 to reopen the case. Despite several opportunities, the assessee did not respond. The assessment was completed under Section 144 read with Section 147, determining total income at Rs. 94,38,788. The  National Faceless Appeal Centre(NFAC) noted that the assessee had marked “not applicable” in Form 35 when asked about payment of advance tax. Since no return was filed, the NFAC held that the assessee should have paid the full tax as advance tax to be eligible to file an appeal. As this was not done, the appeal was dismissed as not maintainable.

The assessee had argued that the land sold for Rs. 62 lakhs was agricultural and not subject to capital gains tax, and therefore there was no taxable income or need to pay advance tax. Based on this, “not applicable” was mentioned in Form 35. However, the NFAC held that the assessee had violated Section 249(4)(b) by not paying advance tax and dismissed the appeal as un-admitted. Read More:Partial Relief to Motorola: ITAT Treats Software Expenses as Revenue Expenditure Citing Recurring Maintenance and No Enduring Benefit The two member bench comprising Yogesh Kumar U.S(Judicial Member) and M.Balaganesh (Accountant Member) noted that the assessee had not filed a return under Section 139 or in response to the notice under Section 148, and had not admitted any income during the proceedings. Since there was no admitted income, there was no question of advance tax liability, and Section 249(4)(b) did not apply.

How to Audit Public Charitable Trusts under the Income Tax Act Click Here It held that the NFAC was wrong in dismissing the appeal as not maintainable. As the assessment was completed ex parte, the tribunal restored the matter to the Assessing Officer for fresh consideration, directing that a reasonable opportunity be given to the assessee. Therefore,the appeal was allowed for statistical purposes