I am filing a first appeal to the Commissioner (Appeals). What exactly must I have done before the appeal can even be admitted, and from what date do the thirty days run?
Section 249(4) is a bar on admission, not a ground of dismissal on the merits: no appeal under Chapter XX shall be admitted unless, at the time of filing, the assessee has paid the tax due on the income returned (clause (a)) or, where no return was filed, an amount equal to the advance tax that was payable (clause (b)). Only clause (b) can be relaxed — on an application by the appellant, the Joint Commissioner (Appeals) or Commissioner (Appeals) may for any good and sufficient reason recorded in writing exempt him from clause (b); there is no such escape from clause (a). The appeal itself must be presented within thirty days of the date of service of the notice of demand (or, in the other cases, of intimation of the order appealed against), and s.249(3) lets the appellate authority admit a late appeal on sufficient cause.
Decided by the CBDT Circulars & Instructions (Not applicable — statutory text) on 2023-04-01, reported as Income-tax Act, 1961, s.249, as amended by the Finance Act 2023 (Act 8 of 2023) w.e.f. 1 April 2023. It bears on section 249, section 249(1), section 249(2), section 249(3), section 249(4), section 246A, section 270AA, section 146 of the Income Tax Act 1961, in Appeals matters.
Practitioners lose appeals on this before anyone reads the grounds. Three things are commonly missed. First, the clause (a) obligation is to pay the tax on the RETURNED income — not the assessed demand — so an assessee who has filed a return showing tax and not paid it cannot be heard at all, however strong the merits. Second, the proviso is available only in a clause (b) case (no return filed), and it is available only on an application: the Commissioner (Appeals) cannot be assumed to have exercised the power silently. Third, s.249(2) counts thirty days from service of the NOTICE OF DEMAND in an assessment or penalty appeal, not from the date of the assessment order, which is often several days earlier; and two periods are expressly excluded — a pending s.146 application, and the period from a s.270AA immunity application to service of the order rejecting it. The second exclusion is the practically live one: an assessee who applies for immunity under s.270AA and is refused does not lose his appeal time while the application is pending.
Binding on the department, not on the assessee or the courts. An assessee may rely on a circular that is beneficial to them.
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Section 249 governs the form of, the fee for and the limitation applicable to a first appeal under Chapter XX to the Joint Commissioner (Appeals) or the Commissioner (Appeals). Sub-section (1) prescribes the form, the verification and a fee graded by the total income as computed by the Assessing Officer: Rs 250 where that income is one hundred thousand rupees or less; Rs 500 where it exceeds one hundred thousand but not two hundred thousand rupees; Rs 1,000 where it exceeds two hundred thousand rupees; and Rs 250 where the subject matter is not covered by those three clauses. Sub-section (2) fixes thirty days, running from the date of payment of tax in a s.248 appeal, from the date of service of the notice of demand where the appeal relates to an assessment or a penalty, and in any other case from the date on which intimation of the order appealed against is served; two provisos exclude the time taken over a s.146 reopening application and the time from a s.270AA(1) application to service of the order rejecting it. Sub-section (3) confers the power to admit a late appeal on satisfaction of sufficient cause. Sub-section (4) bars admission unless the tax on the returned income has been paid, or where no return was filed, an amount equal to the advance tax payable, with a proviso allowing exemption from clause (b) alone.
Statutory position — no holding is asserted; this entry reproduces statutory text. Section 249(1) prescribes the form, the verification and the fee for a first appeal, the fee being two hundred fifty rupees where the total income of the assessee as computed by the Assessing Officer is one hundred thousand rupees or less, five hundred rupees where it is more than one hundred thousand but not more than two hundred thousand rupees, one thousand rupees where it is more than two hundred thousand rupees, and two hundred fifty rupees where the subject matter of the appeal is not covered by those clauses. Section 249(2) requires the appeal to be presented within thirty days of the date of payment of the tax where the appeal is under section 248, of the date of service of the notice of demand where the appeal relates to any assessment or penalty, and in any other case of the date on which intimation of the order sought to be appealed against is served; the first proviso excludes the period from the making of an application under section 146 to service of the order passed on it, and the second proviso excludes the period from the making of an application under sub-section (1) of section 270AA to service of the order rejecting it. Section 249(2A) permits an appeal against an order made under section 201 on or after 1 October 1998 but before 1 June 2000, not presented in time, to be presented before 1 July 2000; it is spent. Section 249(3) empowers the Joint Commissioner (Appeals) or the Commissioner (Appeals) to admit an appeal after the expiration of the said period on satisfaction that the appellant had sufficient cause for not presenting it within that period. Section 249(4) provides that no appeal under Chapter XX shall be admitted unless at the time of filing of the appeal the assessee has paid the tax due on the income returned by him where a return has been filed (clause (a)), or, where no return has been filed, an amount equal to the amount of advance tax which was payable by him (clause (b)); the proviso permits exemption from clause (b) alone, in a case falling under that clause and on an application made by the appellant in that behalf, for any good and sufficient reason to be recorded in writing.
Not a decision. The structure worth noticing is that the legislature drafted s.249(4) as a bar on ADMISSION ('No appeal under this Chapter shall be admitted unless at the time of filing of the appeal'), and drafted the relaxation to reach clause (b) only ('in a case falling under clause (b) and on an application made by the appellant in this behalf'). The words 'at the time of filing of the appeal' are the source of the litigation on whether a payment made after filing but before disposal cures the defect.
No appeal under this Chapter shall be admitted unless at the time of filing of the appeal,—
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Handle my notice → Ask a CA on WhatsAppSection 249(4) is a bar on admission, not a ground of dismissal on the merits: no appeal under Chapter XX shall be admitted unless, at the time of filing, the assessee has paid the tax due on the income returned (clause (a)) or, where no return was filed, an amount equal to the advance tax that was payable (clause (b)). Only clause (b) can be relaxed — on an application by the appellant, the Joint Commissioner (Appeals) or Commissioner (Appeals) may for any good and sufficient reason recorded in writing exempt him from clause (b); there is no such escape from clause (a). The appeal itself must be presented within thirty days of the date of service of the notice of demand (or, in the other cases, of intimation of the order appealed against), and s.249(3) lets the appellate authority admit a late appeal on sufficient cause. This was decided by the CBDT Circulars & Instructions (Not applicable — statutory text) and bears on section 249, section 249(1), section 249(2), section 249(3), section 249(4), section 246A, section 270AA, section 146 of the Income Tax Act 1961. It is reported as Income-tax Act, 1961, s.249, as amended by the Finance Act 2023 (Act 8 of 2023) w.e.f. 1 April 2023. Practitioners lose appeals on this before anyone reads the grounds. Three things are commonly missed. First, the clause (a) obligation is to pay the tax on the RETURNED income — not the assessed demand — so an assessee who has filed a return showing tax and not paid it cannot be heard at all, however strong the merits. Second, the proviso is available only in a clause (b) case (no return filed), and it is available only on an application: the Commissioner (Appeals) cannot be assumed to have exercised the power silently. Third, s.249(2) counts thirty days from service of the NOTICE OF DEMAND in an assessment or penalty appeal, not from the date of the assessment order, which is often several days earlier; and two periods are expressly excluded — a pending s.146 application, and the period from a s.270AA immunity application to service of the order rejecting it. The second exclusion is the practically live one: an assessee who applies for immunity under s.270AA and is refused does not lose his appeal time while the application is pending. If it applies to you, the first step is this: Before filing Form 35, check whether a return was filed for the year. If it was, pay the tax on the returned income in full and put the challans on record with the appeal — this is a condition of admission, not a matter of discretion.
Section 249 governs the form of, the fee for and the limitation applicable to a first appeal under Chapter XX to the Joint Commissioner (Appeals) or the Commissioner (Appeals). Sub-section (1) prescribes the form, the verification and a fee graded by the total income as computed by the Assessing Officer: Rs 250 where that income is one hundred thousand rupees or less; Rs 500 where it exceeds one hundred thousand but not two hundred thousand rupees; Rs 1,000 where it exceeds two hundred thousand rupees; and Rs 250 where the subject matter is not covered by those three clauses. Sub-section (2) fixes thirty days, running from the date of payment of tax in a s.248 appeal, from the date of service of the notice of demand where the appeal relates to an assessment or a penalty, and in any other case from the date on which intimation of the order appealed against is served; two provisos exclude the time taken over a s.146 reopening application and the time from a s.270AA(1) application to service of the order rejecting it. Sub-section (3) confers the power to admit a late appeal on satisfaction of sufficient cause. Sub-section (4) bars admission unless the tax on the returned income has been paid, or where no return was filed, an amount equal to the advance tax payable, with a proviso allowing exemption from clause (b) alone. The matter was decided on 2023-04-01 by the CBDT Circulars & Instructions (Not applicable — statutory text). On those facts the CBDT Circulars & Instructions held as follows. Statutory position — no holding is asserted; this entry reproduces statutory text. Section 249(1) prescribes the form, the verification and the fee for a first appeal, the fee being two hundred fifty rupees where the total income of the assessee as computed by the Assessing Officer is one hundred thousand rupees or less, five hundred rupees where it is more than one hundred thousand but not more than two hundred thousand rupees, one thousand rupees where it is more than two hundred thousand rupees, and two hundred fifty rupees where the subject matter of the appeal is not covered by those clauses. Section 249(2) requires the appeal to be presented within thirty days of the date of payment of the tax where the appeal is under section 248, of the date of service of the notice of demand where the appeal relates to any assessment or penalty, and in any other case of the date on which intimation of the order sought to be appealed against is served; the first proviso excludes the period from the making of an application under section 146 to service of the order passed on it, and the second proviso excludes the period from the making of an application under sub-section (1) of section 270AA to service of the order rejecting it. Section 249(2A) permits an appeal against an order made under section 201 on or after 1 October 1998 but before 1 June 2000, not presented in time, to be presented before 1 July 2000; it is spent. Section 249(3) empowers the Joint Commissioner (Appeals) or the Commissioner (Appeals) to admit an appeal after the expiration of the said period on satisfaction that the appellant had sufficient cause for not presenting it within that period. Section 249(4) provides that no appeal under Chapter XX shall be admitted unless at the time of filing of the appeal the assessee has paid the tax due on the income returned by him where a return has been filed (clause (a)), or, where no return has been filed, an amount equal to the amount of advance tax which was payable by him (clause (b)); the proviso permits exemption from clause (b) alone, in a case falling under that clause and on an application made by the appellant in that behalf, for any good and sufficient reason to be recorded in writing.
Not a decision. The structure worth noticing is that the legislature drafted s.249(4) as a bar on ADMISSION ('No appeal under this Chapter shall be admitted unless at the time of filing of the appeal'), and drafted the relaxation to reach clause (b) only ('in a case falling under clause (b) and on an application made by the appellant in this behalf'). The words 'at the time of filing of the appeal' are the source of the litigation on whether a payment made after filing but before disposal cures the defect. In the words reproduced by the source cited on this page: "No appeal under this Chapter shall be admitted unless at the time of filing of the appeal,—"
It was decided by the CBDT Circulars & Instructions on 2023-04-01 and is reported as Income-tax Act, 1961, s.249, as amended by the Finance Act 2023 (Act 8 of 2023) w.e.f. 1 April 2023. Binding on the department, not on the assessee or the courts. An assessee may rely on a circular that is beneficial to them. A CBDT circular or instruction binds officers of the department but not the assessee and not the courts. Where a circular helps you, you may hold the department to it. Where it hurts you, it cannot override the Act or a judgment. On section 249, section 249(1), section 249(2), section 249(3), section 249(4), section 246A, section 270AA, section 146, the practical question is whether the facts of your own notice match the facts of this case closely enough for the same rule to apply.
It cuts both ways and is cited by both sides. Statutory position — no holding is asserted; this entry reproduces statutory text. Section 249(1) prescribes the form, the verification and the fee for a first appeal, the fee being two hundred fifty rupees where the total income of the assessee as computed by the Assessing Officer is one hundred thousand rupees or less, five hundred rupees where it is more than one hundred thousand but not more than two hundred thousand rupees, one thousand rupees where it is more than two hundred thousand rupees, and two hundred fifty rupees where the subject matter of the appeal is not covered by those clauses. Section 249(2) requires the appeal to be presented within thirty days of the date of payment of the tax where the appeal is under section 248, of the date of service of the notice of demand where the appeal relates to any assessment or penalty, and in any other case of the date on which intimation of the order sought to be appealed against is served; the first proviso excludes the period from the making of an application under section 146 to service of the order passed on it, and the second proviso excludes the period from the making of an application under sub-section (1) of section 270AA to service of the order rejecting it. Section 249(2A) permits an appeal against an order made under section 201 on or after 1 October 1998 but before 1 June 2000, not presented in time, to be presented before 1 July 2000; it is spent. Section 249(3) empowers the Joint Commissioner (Appeals) or the Commissioner (Appeals) to admit an appeal after the expiration of the said period on satisfaction that the appellant had sufficient cause for not presenting it within that period. Section 249(4) provides that no appeal under Chapter XX shall be admitted unless at the time of filing of the appeal the assessee has paid the tax due on the income returned by him where a return has been filed (clause (a)), or, where no return has been filed, an amount equal to the amount of advance tax which was payable by him (clause (b)); the proviso permits exemption from clause (b) alone, in a case falling under that clause and on an application made by the appellant in that behalf, for any good and sufficient reason to be recorded in writing. It arises in Appeals matters, on section 249, section 249(1), section 249(2), section 249(3), section 249(4), section 246A, section 270AA, section 146 of the Income Tax Act 1961, and was decided by Not applicable — statutory text. Before relying on it, read the source linked on this page and check whether it has since been distinguished, overruled or overtaken by an amendment to the Income Tax Act. In practice the steps that follow from it are these. If no return was filed, compute the advance tax that was payable, pay it, and if you cannot, file a separate written application under the proviso to s.249(4) setting out the good and sufficient reason, and ask for a speaking order on that application. Count the thirty days from the date the notice of demand was served, not from the date of the assessment order, and keep evidence of the date of service. Where a s.270AA immunity application was made and rejected, exclude the period from the date of the application to the date the rejection order was served when computing limitation. If you are already out of time, file a condonation application under s.249(3) with a dated, day-by-day explanation supported by affidavit; do not rely on a general plea of hardship. Pay the correct fee under s.249(1) by reference to the total income AS COMPUTED BY THE ASSESSING OFFICER, not the returned income — Rs 250 / Rs 500 / Rs 1,000 on the three slabs, and Rs 250 where the subject matter falls outside them.
Still good law. Sourced from the live departmental page, which prints the correct Act name and section heading and carries the stamp 'Year: 2025'; the footnote list on that page shows the only recent amendment to be the Finance Act 2023 insertion of the Joint Commissioner (Appeals). The text of s.249(4) and its proviso as reproduced here matches, save for the Finance Act 2023 insertion of the Joint Commissioner (Appeals) alongside the Commissioner (Appeals), the text set out by the Delhi High Court at paragraph 22 of CIT v. Jagat Novel Exhibitors Pvt. Ltd. (8 February 2012), transcribed this pass, which is an independent judicial reproduction of the pre-2023 wording. Whether any provision of the Income-tax Act, 2025 alters this for years beginning on or after 1 April 2026 has not been checked and nothing here should be read as a statement about that Act. No source could be cited for that finding. Checking whether an authority still stands matters as much as knowing what it held: a decision may be overruled on one point and survive on another, or the provision it interprets may have been amended since. Read the source and the editor's note on this page before relying on it in a reply to an Assessing Officer or in an appeal.
Text taken from the departmental page https://incometaxindia.gov.in/w/section-249-64, which prints the Act name 'Income-tax Act, 1961', the heading 'Form of appeal and limitation' and the stamp 'Year: 2025'. The page was fetched twice (once through the bare host, once through the www host, which is a distinct URL and so a distinct fetch) and both returned the same text; the second fetch also returned the footnote list, which shows only two amendment notes, both 'Ins. by Act No. 08 of 2023, w.e.f. 1-4-2023' — that is the Finance Act 2023 insertion of the Joint Commissioner (Appeals) into the section. There is therefore no recent amendment to the thirty-day period in s.249(2) or to the s.249(4) bar. Sub-section (2A), which allowed a late appeal against a s.201 order made between 1 October 1998 and 1 June 2000 to be filed before 1 July 2000, is spent and is reproduced here only for completeness. No indiankanoon bare-act page was used for any part of this entry. This is a statutory entry, not a decided case. The 'tier' value 'cbdt' is used because the library's fixed tier vocabulary has no value for a statutory entry; the source is the Income-tax Department's own section page, not a Board circular, and 'bench' accordingly reads 'Not applicable — statutory text'. The date in 'decided_on', 1 April 2023, is the COMMENCEMENT DATE of the version stated — the Finance Act 2023 (Act No. 08 of 2023) insertion of the Joint Commissioner (Appeals), which footnotes 65 and 66 on the page record as the only amendment to this section — and is not a decision date. 'favours' is null because a statutory entry states the text and takes no side. This library shows the verification state of every entry openly. This entry has not yet been read in full by a chartered accountant. The summary reflects the sources listed on this page. Read the source before you rely on it in a reply to an Assessing Officer or in an appeal before the Commissioner (Appeals) or the Income Tax Appellate Tribunal.
Statutory position — no holding is asserted; this entry reproduces statutory text. Section 249(1) prescribes the form, the verification and the fee for a first appeal, the fee being two hundred fifty rupees where the total income of the assessee as computed by the Assessing Officer is one hundred thousand rupees or less, five hundred rupees where it is more than one hundred thousand but not more than two hundred thousand rupees, one thousand rupees where it is more than two hundred thousand rupees, and two hundred fifty rupees where the subject matter of the appeal is not covered by those clauses. Section 249(2) requires the appeal to be presented within thirty days of the date of payment of the tax where the appeal is under section 248, of the date of service of the notice of demand where the appeal relates to any assessment or penalty, and in any other case of the date on which intimation of the order sought to be appealed against is served; the first proviso excludes the period from the making of an application under section 146 to service of the order passed on it, and the second proviso excludes the period from the making of an application under sub-section (1) of section 270AA to service of the order rejecting it. Section 249(2A) permits an appeal against an order made under section 201 on or after 1 October 1998 but before 1 June 2000, not presented in time, to be presented before 1 July 2000; it is spent. Section 249(3) empowers the Joint Commissioner (Appeals) or the Commissioner (Appeals) to admit an appeal after the expiration of the said period on satisfaction that the appellant had sufficient cause for not presenting it within that period. Section 249(4) provides that no appeal under Chapter XX shall be admitted unless at the time of filing of the appeal the assessee has paid the tax due on the income returned by him where a return has been filed (clause (a)), or, where no return has been filed, an amount equal to the amount of advance tax which was payable by him (clause (b)); the proviso permits exemption from clause (b) alone, in a case falling under that clause and on an application made by the appellant in that behalf, for any good and sufficient reason to be recorded in writing.
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