Application us 249(4)(b)

Hi Krishna,

Regarding your query on Section 249(4)(b) and its applicability when filing an appeal against penalty orders:

What is Section 249(4)(b)?

• Section 249(4)(b) of the Income Tax Act requires the appellant to pay the tax determined by the AO before the Commissioner of Income Tax (Appeals) entertains the appeal if the return of income (ROI) has not been filed.

• This is primarily aimed at appeals related to assessment orders where tax demand is raised.

Applicability of Section 249(4)(b) for Appeals Against Penalty Orders

• Section 249(4)(b) applies only to appeals filed against assessment orders where tax demand arises.

• Penalty orders do not involve demand of tax but a penalty amount. Hence, the condition of paying tax determined by AO before filing appeal does not apply to appeals against penalty orders.

• Therefore, you are NOT required to make an application under Section 249(4)(b) when filing appeal against penalty orders, irrespective of whether ROI is filed or not.

Summary