#Advance Tax

The ITAT Mumbai has ruled that interest under Section 234C cannot be imposed on advance tax payments made before a business begins operations, since no income could reasonably be estimated during that period. This clarifies a critical exemption for startups and new enterprises, ensuring they are not penalized for tax obligations tied to non-existent income.

Non-residents earning no income in India cannot be held liable for advance tax obligations, and the ITAT Mumbai has ruled that dismissing appeals under Section 249(4) without examining the merits is procedurally illegal. This decision protects NRIs from arbitrary tax enforcement and reinforces due process in income tax appeals, setting a critical precedent for foreign taxpayers with minimal India ties.

ITAT Indore holds that Section 249(4)(b) does not apply when no taxable income exists, rendering advance tax payment unnecessary for appeal maintainability in reassessment cases.