Hyderabad tribunal rules section 249(4)(b) does not bar appeals when tax deducted at source covers advance tax liability

The Hyderabad bench of the Income Tax Appellate Tribunal ruled that section 249(4)(b) cannot bar an appeal when tax deducted at source covers the advance tax liability of the assessee. The tribunal condoned a delay of 867 days in filing and consequently remanded the salary assessment back for fresh adjudication. This decision addresses procedural barriers related to filing appeals without a regular return.

This ruling provides relief to taxpayers by clarifying that statutory pre-condition bars on appeals do not apply if tax deducted at source effectively satisfies the tax due. It ensures that assessees are not unfairly blocked from challenging assessment orders simply because a formal return was not filed, provided tax has already been paid through deductions. The decision reinforces fair appellate access under income tax laws.

Tax professionals handling pending salary reassessment disputes should review this tribunal order to support client appeals facing similar pre-condition objections. Practitioners must verify tax deducted at source challans to establish that no advance tax was due. Affected parties should prepare for reassessment proceedings before the lower tax authorities as directed by the tribunal.