CHAPTER XX
APPEALS
AND REVISION
15[R1] A.—Appeals 16[R2] [***]
to the Deputy Commissioner (Appeals)
and Commissioner (Appeals)
246. (1) Subject
to the provisions of sub-section (2), any assessee aggrieved by any of the
following orders of an Assessing Officer (other than the Deputy Commissioner)
may appeal to the Deputy Commissioner (Appeals) 17[R3] [before the 1st day of June, 2000] against
such order—
(a) an order against the assessee, where the assessee denies his
liability to be assessed18 under this Act 19[R4] [, or an intimation under sub-section (1) or
sub-section (1B) of section 143, where the assessee objects to the making of
adjustments,] or any order of assessment under sub-section
(3) of section 143 or section 144, where the
assessee objects to the amount of income assessed, or to the amount of tax
determined, or to the amount of loss computed, or to the status under which he
is assessed;
(b) an order of assessment, reassessment or recomputation under
section 147 or section 150;
(c) an
order under section 154 or section 155 having the effect of enhancing the
assessment or reducing a refund or an order refusing to allow the claim made by
the assessee under either of the said sections;
(d) an order made under section 163 treating the assessee as the
agent of a non-resident;
(e) an order under sub-section (2) or sub-section (3) of section
170;
(f) an order under section 171;
(g) any
order under clause (b) of
sub-section (1) or under sub-section (2) or sub-section (3) or sub-section (5)
of section 185 20[R5] [***] 21[R6] [in respect of any assessment for the
assessment year commencing on or before the 1st day of
April, 1992];
(h) an order cancelling the registration of a firm under
sub-section (1) or under sub-section (2) of section 186 22[R7] [***] 23[R8] [in respect of any assessment for the
assessment year commencing on or before the 1st day of April, 1992];
(i) an order under section 201;
(j) an
order under section 216 in respect of any assessment for the assessment year
commencing on the 1st day of April, 1988 or any earlier assessment year;
(k) an order under section 237;
(l) an order imposing a penalty under—
(i) section 221, or
(ii) section 271, section 271A, section 271B, 24[R9] [***] 25[R10] [section
272A, section 272AA or section 272BB];
(iii) 26[R11] [***]
section 272, section 272B or section 273, as they stood immediately before the
1st day of April, 1989, in respect of any assessment for the assessment year
commencing on the 1st day of April, 1988 or any earlier assessment years.
27[R12] (1A) Notwithstanding anything contained in
sub-section (1), every appeal filed, on or after the 1st day of October, 1998
but before the 1st day of June, 2000, before the Deputy Commissioner (Appeals)
and any matter arising out of or connected with such appeal and which is so
pending shall stand transferred to the Commissioner (Appeals) and the
Commissioner (Appeals) may proceed with such appeal or matter from the stage at
which it was on that day.]
(2) Notwithstanding anything contained in sub-section (1), any
assessee aggrieved by any of the following orders (whether made before or after
the appointed day) may appeal to the Commissioner (Appeals) 28[R13] [before
the 1st day of June, 2000] against such order—
(a) 29[R14] [an
intimation or order specified in sub-section (1) where such intimation is sent
or such order] is made by the Deputy Commissioner in exercise of the
powers or functions conferred on or assigned to him under section 120 or
section 124;
(b) an order specified in clauses (a) to (e) (both inclusive) and clauses (i) to (l) (both
inclusive) of sub-section (1) 30[R15] [or an
order under section 104, as it stood immediately before the 1st day of April,
1988 in respect of any assessment for the assessment year commencing on the 1st
day of April, 1987 or any earlier assessment year] made against the assessee,
being a company;
(c) an order of
assessment made after the 30th day of September, 1984, on the basis of the
directions issued by the Deputy Commissioner under section 144A;
(d) an order made
by the Deputy Commissioner under section 154;
31[R16] [(da) an
order of assessment made by an Assessing Officer under clause (c) of section 158BC, in respect of
search initiated under section 132 or books of account, other documents or any
assets requisitioned under section 132A, on or after the 1st day of January,
1997;
(db) an order imposing a penalty under
sub-section (2) of section 158BFA;]
(e) an order
imposing a penalty under section 271B 32[R17] [or
section 271BB];
33[R18] (ee) an
order made by a Deputy Commissioner imposing a penalty under section 271C,
section 271D or section 271E;]
(f) an order made
by a Deputy Commissioner or a Deputy Director imposing a penalty under section
272A;
34[R19] (ff) an order made by a Deputy
Commissioner imposing a penalty under section 272AA;]
35[R20] [(g) an order imposing a penalty under
Chapter XXI by the Income-tax Officer or the Assistant Commissioner where such
penalty has been imposed with the previous approval of the Deputy Commissioner
under sub-section (2) of section 274;]
(h) an order made by an Assessing Officer
(other than Deputy Commissioner) under the provisions of this Act in the case
of such person or classes of persons as the Board may, having regard to the
nature of the cases, the complexities involved and other relevant considerations,
direct.
(3) Notwithstanding anything contained in sub-section (1), the
Board or the Director General, or the Chief Commissioner or Commissioner if so
authorised by the Board, may, by order in writing, transfer any appeal which is
pending before a Deputy Commissioner (Appeals) and any matter arising out of or
connected with such appeal and which is so pending, to the Commissioner
(Appeals) if the Board or, as the case may be, the Director General or Chief
Commissioner or Commissioner (at the request of the appellant or otherwise) is
satisfied that it is necessary or expedient so to do having regard to the
nature of the case, the complexities involved and other relevant considerations
and the Commissioner (Appeals) may proceed with such appeal or matter, from the
stage at which it was before it was so transferred:
Provided that the appellant may demand that before proceeding further with the
appeal or matter, the previous proceeding or any part thereof be re-opened or
that he be reheard.
Explanation.—For the purposes of
this section,—
(a) “appointed day” means the 10th day of
July, 1978, being the day appointed under section 39 of the Finance (No. 2)
Act, 1977 (29 of 1977);
(b) “status” means
the category under which the assessee is assessed as “individual”, “Hindu
undivided family” and so on.]
36[R21] Appealable orders before Commissioner
(Appeals).
246A. (1) Any
assessee aggrieved by any of the following orders (whether made before or after
the appointed day) may appeal to the Commissioner (Appeals) against—
(a) an
order 37[R22] [passed
by a Joint Commissioner under clause (ii)
of sub-section (3) of section 115VP or an order] against the assessee where the
assessee denies his liability to be assessed under this Act or an intimation under
sub-section (1) or sub-section (1B) of section 143, where the assessee objects
to the making of adjustments, or any order of assessment under sub-section (3)
of section 143 or section 144, to the income assessed, or to the amount of tax
determined, or to the amount of loss computed, or to the status under which he
is assessed;
The following clauses (aa)
and (ab) shall be inserted
after clause (a) of sub-section
(1) of section 246A by the Finance Act, 2005, w.e.f. 1-4-2006
:
(aa) an
order of assessment under sub-section (3) of section 115WE or section 115WF,
where the assessee, being an employer objects to the value of fringe benefits
assessed;
(ab) an
order of assessment or reassessment under section 115WG;
(b) an order of
assessment, reassessment or recomputation under section 147 or section 150;
38[R23] [(ba) an
order of assessment or reassessment under section 153A;]
(c) an order made under section 154 or
section 155 having the effect of enhancing the assessment or reducing a refund
or an order refusing to allow the claim made by the assessee under either of
the said sections;
(d) an order made
under section 163 treating the assessee as the agent of a non-resident;
(e) an order made
under sub-section (2) or sub-section (3) of section 170;
(f) an order made
under section 171;
(g) an order made under clause (b) of sub-section (1) or under
sub-section (2) or sub-section (3) or sub-section (5) of section 185 in respect
of an assessment for the assessment year commencing on or before the 1st day of
April, 1992;
(h) an order cancelling the registration of
a firm under sub-section (1) or under sub-section (2) of section 186 in respect
of any assessment for the assessment year commencing on or before the 1st day
of April, 1992 or any earlier assessment year;
39[R24] (ha) an
order made under section 201;]
(i) an order made under section 237;
(j) an order imposing a penalty under—
(A) section 221; or
(B) section 271,
section 271A, section 271F, 40[R25] [section 271FB,] section 272AA or section 272BB;
(C) section 272, section 272B or section 273,
as they stood immediately before the 1st day of April, 1989, in respect of an
assessment for the assessment year commencing on the 1st day of April, 1988, or
any earlier assessment years;
(k) an order of assessment made by an
Assessing Officer under clause (c)
of section 158BC, in respect of search initiated under section 132 or books of
account, other documents or any assets requisitioned under section 132A on or
after the 1st day of January, 1997;
(l) an order
imposing a penalty under sub-section (2) of section 158BFA;
(m) an order
imposing a penalty under section 271B or section 271BB;
(n) an order made by a Deputy Commissioner
imposing a penalty under section 271C, section 271D or section 271E;
(o) an order made
by a Deputy Commissioner or a Deputy Director imposing a penalty under section
272A;
(p) an order made
by a Deputy Commissioner imposing a penalty under section 272AA;
(q) an order imposing a penalty under Chapter XXI;
(r) an order made by an Assessing Officer
other than a Deputy Commissioner under the provisions of this Act in the case
of such person or class of persons, as the Board may, having regard to the
nature of the cases, the complexities involved and other relevant
considerations, direct.
Explanation.—For the
purposes of this sub-section, where on or after the 1st day of October, 1998,
the post of Deputy Commissioner has been redesignated as Joint Commissioner and
the post of Deputy Director has been redesignated as Joint Director, the
references in this sub-section for “Deputy Commissioner” and “Deputy Director”
shall be substituted by “Joint Commissioner” and “Joint Director” respectively.
41[R26] (1A)
Every appeal filed by an assessee
in default against an order under section 201 on or after the 1st day of
October, 1998 but before the 1st day of June, 2000 shall be deemed to have been
filed under this section.]
(2) Notwithstanding anything contained in
sub-section (1) of section 246, every appeal under this Act which is pending
immediately before the appointed day, before the Deputy Commissioner (Appeals)
and any matter arising out of or connected with such appeals and which is so
pending shall stand transferred on that date to the Commissioner (Appeals) and
the Commissioner (Appeals) may proceed with such appeal or matter from the
stage at which it was on that day :
Provided that the appellant may demand that before
proceeding further with the appeal or matter, the previous proceeding or any
part thereof be reopened or that he be re-heard.
Explanation.—For the purposes of
this section, “appointed day” means the day appointed by the Central Government
by notification42[R27] in
the Official Gazette.]
247. 43[R28] [Omitted by the Finance Act, 1992, w.e.f.
1-4-1993.]
Appeal by person denying liability to deduct tax.
248. Any
person having in accordance with the provisions of sections 195 and 200 deducted and paid tax in respect of any sum chargeable under this Act,
other than interest, who denies his liability to make such deduction, may
appeal to the 44[R29] [* *
*] 45[R30] [Commissioner
(Appeals)] to be declared not liable to make such deduction.
Form of appeal and limitation.
249. (1) Every
appeal under this Chapter shall be in the prescribed form46[R31] and
shall be verified in the prescribed manner 47[R32] [and
shall, in case of an appeal made to the Commissioner (Appeals) on or after the
1st day of October, 1998, irrespective of the date of initiation of the
assessment proceedings relating thereto be accompanied by a fee of,—
(i) where the total income of the assessee as computed by the
Assessing Officer in the case to which the appeal relates is one hundred
thousand rupees or less, two hundred fifty rupees;
(ii) where
the total income of the assessee, computed as aforesaid, in the case to which
the appeal relates is more than one hundred thousand rupees but not more than
two hundred thousand rupees, five hundred rupees;
(iii) where the total income of the assessee, computed as
aforesaid, in the case to which the appeal relates is more than two hundred
thousand rupees, one thousand rupees;]
48[R33] (iv) where
the subject matter of an appeal is not covered under clauses (i), (ii) and (iii),
two hundred fifty rupees.]
(2) The appeal shall be presented within thirty days of the
following date, that is to say,—
(a) where the appeal relates to any tax deducted under
sub-section (1) of section 195, the date of payment of the tax, or
(b) where the appeal relates to any assessment or penalty, the
date of service of the notice of demand relating to the assessment or penalty:
49[R34] Provided that, where an application has been made
under section 146 for reopening an assessment, the period from the date on
which the application is made to the date on which the order passed on the
application is served on the assessee shall be excluded, or]
(c) in any other case, the date on which intimation of the order
sought to be appealed against is served.
50[R35] (2A)
Notwithstanding anything contained in sub-section (2), where an order has been
made under section 201 on or
after the 1st day of October, 1998 but before the 1st day of June, 2000 and the
assessee in default has not presented any appeal within the time specified in
that sub-section, he may present such appeal before the 1st day of July, 2000.]
(3) The 51[R36] [***]
52[R37] [Commissioner
(Appeals)] may admit an appeal after the expiration of the said period if he is
satisfied that the appellant had sufficient cause for not presenting it within
that period.
53[R38] (4)
No appeal under this Chapter shall be admitted unless at the time of filing of
the appeal,—
(a) where a return has been filed by the assessee, the assessee
has paid the tax due on the income returned by him; or
(b) where no return has been filed by the assessee, the assessee
has paid an amount equal to the amount of advance tax which was payable by him:
Provided that, 54[R39] [in
a case falling under clause (b)
and] on an application made by the appellant in this behalf, the 55[R40] [* *
*] 56[R41] [Commissioner
(Appeals)] may, for any good and sufficient reason to be recorded in writing,
exempt him from the operation of the provisions of 57[R42] [that
clause].]
58[R43] 250. (1) The 59[R44] [* *
*] 60[R45] [Commissioner
(Appeals)] shall fix a day and place for the hearing of the appeal, and shall
give notice of the same to the appellant and to the 61[R46] [Assessing]
Officer against whose order the appeal is preferred.
(2) The following shall have the right to be heard at the
hearing of the appeal—
(a) the appellant, either in person or by an authorised
representative;
(b) the 61[R47] [Assessing]
Officer, either in person or by a representative.
(3) The 62[R48] [* *
*] 63[R49] [Commissioner
(Appeals)] shall have the power to adjourn the hearing of the appeal from time
to time.
(4) The 64[R50] [* *
*] 65[R51] [Commissioner
(Appeals)] may, before disposing of any appeal, make such further inquiry as he
thinks fit, or may direct the 66[R52] [Assessing]
Officer to make further inquiry and report the result of the same to the 64[R53] [*
* *] 65[R54]
[Commissioner (Appeals)].
(5) The 64[R55] [*
* *] 65[R56]
[Commissioner (Appeals)] may, at the hearing of an appeal, allow the appellant
to go into any ground of appeal not specified in the grounds of appeal, if the 64[R57] [*
* *] 65[R58]
[Commissioner (Appeals)] is satisfied that the omission of that ground from the
form of appeal was not wilful or unreasonable.
(6) The order of the 64[R59] [*
* *] 65[R60]
[Commissioner (Appeals)] disposing of the appeal shall be in writing and shall
state the points for determination, the decision thereon and the reason for the
decision.
67[R61] (6A)
In every appeal, the
Commissioner (Appeals), where it is possible, may hear and decide such appeal
within a period of one year from the end of the financial year in which such
appeal is filed before him under sub-section (1) of section 246A.]
(7) On the disposal of the appeal, the 64[R62] [*
* *] 65[R63]
[Commissioner (Appeals)] shall communicate the order passed by him to the
assessee and to the 68[R64] [Chief
Commissioner or Commissioner].
Powers of the 64[R65] [*
* *] 65[R66] [Commissioner (Appeals)].
251. (1) In
disposing of an appeal, the 64[R67] [* *
*] 65[R68] [Commissioner
(Appeals)] shall have the following powers—
(a) in an appeal
against an order of assessment, he may confirm, reduce, enhance or annul the
assessment69[R69] ; 70[R70] [* * *]
(b) in an appeal against an order imposing a
penalty, he may confirm or cancel such order or vary it so as either to enhance
or to reduce the penalty;
(c) in any other
case, he may pass such orders in the appeal as he thinks fit.
(2) The 71[R71] [* * *] 72[R72] [Commissioner (Appeals)] shall not enhance an
assessment or a penalty or reduce the amount of refund unless the appellant has
had a reasonable opportunity of showing cause against such enhancement or
reduction.
Explanation.—In disposing of an appeal, the 71[R73] [* *
*] 72[R74] [Commissioner
(Appeals)] may consider and decide any matter arising out of the proceedings in
which the order appealed against was passed, notwithstanding that such matter was not raised before the 71[R75] [* *
*] 72[R76] [Commissioner
(Appeals)] by the appellant.
B.—Appeals to
the Appellate Tribunal
252. (1) The
Central Government shall constitute an Appellate Tribunal consisting of as many
judicial and accountant members as it thinks fit to exercise the powers and discharge
the functions conferred on the Appellate Tribunal by this Act.
73[R77] (2) A judicial member shall be a person
who has for at least ten years held a judicial office in the territory of India
or who has been a member of the 74[R78] [Indian]
Legal Service and has held a post in Grade 75[R79] [II]
of that Service or any equivalent or higher post for at least three years or
who has been an advocate for at least ten years.
Explanation.—For the purposes of
this sub-section,—
(i) in
computing the period during which a person has held judicial office in the
territory of India, there shall be included any period, after he has held any
judicial office, during which the person has been an advocate or has held the
office of a member of a Tribunal or any post, under the Union or a State,
requiring special knowledge of law;
(ii) in computing the period during which a person has been an
advocate, there shall be included any period during which the person has held
judicial office or the office of a member of a Tribunal or any post, under the
(2A) An accountant member shall be a person who has for at least ten
years been in the practice of accountancy as a chartered accountant under the
Chartered Accountants Act, 1949 (38 of 1949), or as a registered accountant
under any law formerly in force or partly as a registered accountant and partly
as a chartered accountant, or who has been a member of the Indian Income-tax
Service, Group A and has held the post of 76[R80] [Additional]
Commissioner of Income-tax or any equivalent or higher post for at least three
years.]
77[R81] (3) The Central Government shall appoint
the Senior Vice-President or one of the Vice-Presidents of the Appellate
Tribunal to be the President thereof.]
78[R82] (4) The Central Government may appoint one
or more members of the Appellate Tribunal to be the Vice-President or, as the
case may be, Vice-Presidents thereof.]
79[R83] (4A)
The Central Government may appoint
one of the Vice-Presidents of the Appellate Tribunal to be the Senior
Vice-President thereof.]
80[R84] (5) 81[R85] [The
Senior Vice-President or a Vice-President] shall exercise such of the powers
and perform such of the functions of the President as may be delegated to him
by the President by a general or special order in writing.
82[R86] Appeals to the Appellate Tribunal.
83[R87] 253.(1) Any
assessee aggrieved by any of the following orders may appeal to the Appellate
Tribunal against such order—
(a) an order passed by a 84[R88] [Deputy
Commissioner (Appeals)] 85[R89] [before
the 1st day of October, 1998] 86[R90] [or,
as the case may be, a Commissioner (Appeals)] under 87[R91] [***]
88[R92] [section
154], 89[R93] [***]
section 250, 90[R94] [section
271, section 271A or section 272A]; or
91[R95] (b) an
order passed by an Assessing Officer under clause (c) of section 158BC, in respect of search initiated under
section 132 or books of account, other documents or any assets requisitioned
under section 132A, after the 30th day of June, 1995, but before the 1st day of
January, 1997; or]
92[R96] (ba) an
order passed by an Assessing Officer under sub-section (1) of section 115VZC;
or]
(c) an order passed
by a Commissioner 93[R97] [under
section 12AA or] under section 263 94[R98] [or
under section 271] 95[R99] [or
under section 272A] 96[R100] [***] or an order passed by him under section
154 amending his order under section 263] 97[R101] [or an order passed by a Chief Commissioner or
a Director General or a Director under section 272A.]
(2) The Commissioner may, if he objects to
any order passed by a 98[R102] [Deputy Commissioner (Appeals)] 99[R103] [before the 1st day of October, 1998] 1[R104] [or, as the case may be, a Commissioner
(Appeals)] under 2[R105] [section 154 or] section 250, direct the 3[R106] [Assessing] Officer to appeal to the Appellate
Tribunal against the order.
(3) Every appeal under sub-section (1) or sub-section (2) shall be
filed within sixty days of the date on which the order sought to be appealed
against is communicated to the assessee or to the Commissioner, as the case may
be :
4[R107] Provided that in respect of any appeal under clause (b) of sub-section (1), this sub-section shall have effect as if
for the words “sixty days”, the words “thirty days” had been substituted.]
(4) The 5[R108] [Assessing]
Officer or the assessee, as the case may be, on receipt of notice that an
appeal against the order of the 6[R109] [Deputy Commissioner (Appeals)] 7[R110] [or, as the case may be, the Commissioner
(Appeals)] has been preferred under sub-section (1) or sub-section (2) by the
other party, may, notwithstanding that he may not have appealed against such
order or any part thereof; within thirty days of the receipt of the notice,
file a memorandum of cross-objections, verified in the prescribed manner,
against any part of the order 8[R111] of the 9[R112] [Deputy Commissioner (Appeals)] 7[R113] [or, as the case may be, the Commissioner
(Appeals)], and such memorandum shall be disposed of by the Appellate Tribunal
as if it were an appeal presented within the time specified in sub-section (3).
(5) The Appellate Tribunal may admit an appeal or permit the
filing of a memorandum of cross-objections after the expiry of the relevant
period referred to in sub-section (3) or sub-section (4), if it is satisfied
that there was sufficient cause for not presenting it within that period.
10[R114] [(6) An
appeal to the Appellate Tribunal shall be in the prescribed form11[R115] and shall be verified in the prescribed
manner and shall, in the case of an appeal made, on or after the 1st day of
October, 1998, irrespective of the date of initiation of the assessment
proceedings relating thereto, be accompanied by a fee of,—
(a) where the total income of the assessee as computed by the Assessing
Officer, in the case to which the appeal relates, is one hundred thousand
rupees or less, five hundred rupees,
(b) where
the total income of the assessee, computed as aforesaid, in the case to which
the appeal relates is more than one hundred thousand rupees but not more than
two hundred thousand rupees, one thousand five hundred rupees,
(c) where the total income of the assessee, computed as
aforesaid, in the case to which the appeal relates is more than two hundred thousand
rupees, one per cent of the assessed income, subject to a maximum of ten
thousand rupees,
12[R116] (d) where the subject matter of an appeal
relates to any matter, other than those specified in clauses (a), (b) and (c), five
hundred rupees:]
Provided that no such fee shall be payable in the case of an appeal referred to
in sub-section (2) or a memorandum of cross-objections referred to in sub-
section (4).
(7) An application for stay of demand shall be accompanied by a
fee of five hundred rupees.]
254. (1) The
Appellate Tribunal may, after giving both the parties to the appeal an
opportunity of being heard, pass such orders thereon as it thinks fit13.[R117]
(2) The Appellate Tribunal may, at any
time within four years from the date of the order, with a view to
rectifying any mistake apparent from the record15[R119] , amend any order passed by it under
sub-section (1), and shall make such amendment15[R120] if the mistake is brought to its notice by
the assessee or the 16[R121] [Assessing] Officer :
Provided that an amendment which has the effect of enhancing an assessment or
reducing a refund or otherwise increasing the liability of the assessee, shall
not be made under this sub-section unless the Appellate Tribunal has given
notice to the assessee of its intention to do so and has allowed the assessee a
reasonable opportunity of being heard :
17[R122] [Provided further that any application
filed by the assessee in this sub-section on or after the 1st day of October,
1998, shall be accompanied by a fee of fifty rupees.]
18[R123] (2A)
In every appeal, the Appellate Tribunal, where it is possible, may hear and
decide such appeal within a period of four years from the end of the financial
year in which such appeal is filed under sub-section (1) 19[R124] [or sub-section (2)] of section 253 :
20[R125] Provided that where an order of stay is made in any proceedings relating to an
appeal filed under sub-section (1) of section 253, the Appellate Tribunal shall dispose of the appeal within a period of
one hundred and eighty days from the date of such order :
Provided further that if such appeal is not so disposed of
within the period specified in the first proviso, the stay order shall stand
vacated after the expiry of the said period.]
(2B) The cost of any
appeal to the Appellate Tribunal shall be at the discretion of that Tribunal.]
(3) The Appellate Tribunal shall send a
copy of any orders passed under this section to the assessee and to the 2[R126] 1[22[R127] [***] Commissioner].
(4) Save as provided in section 256 23[R128] [or section 260A], orders passed by the Appellate Tribunal on appeal shall be final.
Procedure of Appellate Tribunal.
24[R129] 255. (1) The powers and
functions of the Appellate Tribunal may be exercised and discharged by Benches
constituted by the President of the Appellate Tribunal from among the members
thereof.
(2) Subject to the provisions contained in sub-section (3), a
Bench shall consist of one judicial member and one accountant member.
(3) The President or any other member of the Appellate Tribunal
authorised in this behalf by the Central Government may, sitting singly,
dispose of any case which has been allotted to the Bench of which he is a
member and which pertains to an assessee whose total income as computed by the 25[R130] [Assessing] Officer in the case does not
exceed 26[R131] [five hundred thousand rupees], and the President
may, for the disposal of any particular case, constitute a Special Bench consisting of three or more members, one of whom shall
necessarily be a judicial member and one an accountant member.
(4) If the members of a Bench differ in opinion on any point,
the point shall be decided according to the opinion of the majority, if there
is a majority, but if the members are equally divided, they shall state the
point or points on which they differ, and the case shall be referred by the
President of the Appellate Tribunal for hearing on such point or points by one
or more of the other members of the Appellate Tribunal, and such point or
points shall be decided according to the opinion of the majority of the members
of the Appellate Tribunal who have heard the case, including those who first
heard it.
27[R132] (5) Subject
to the provisions of this Act, the Appellate Tribunal shall have power to
regulate its own procedure and the procedure of Benches thereof in all matters
arising out of the exercise of its powers or of the discharge of its functions,
including the places at which the Benches shall hold their sittings.
(6) The Appellate Tribunal shall, for the purpose of
discharging its functions, have all the powers which are vested in the
income-tax authorities referred to in section 131, and any proceeding before
the Appellate Tribunal shall be deemed to be a judicial proceeding within the
meaning of Sections 193 and 228 and for the purpose of section 196 of the
Indian Penal Code (45 of 1860), and the Appellate Tribunal shall be deemed to
be a civil court for all the purposes of section 195 and Chapter XXXV of the
Code of Criminal Procedure, 1898 (5 of 1898)28[R133] .
C.—Reference to
High Court
Statement of case to the High Court.
256. 29[R134] (1) The
assessee or the Commissioner may, within sixty days of the date upon which he
is served with notice of an order 30[R135] [passed before the 1st day of October, 1998,]
under section 254, by application
in the prescribed form, accompanied where the application is made by the
assessee by a fee of 31[R136] [two hundred rupees], require the Appellate
Tribunal to refer to the High Court any question of law arising out of such
order32[R137] and, subject to the other provisions contained
in this section, the Appellate Tribunal shall, within one hundred and twenty
days of the receipt of such application, draw up a statement of the case and
refer it to the High Court :
Provided that the Appellate Tribunal may, if it is satisfied that the applicant
was prevented by sufficient cause from presenting the application within the
period hereinbefore specified, allow it to be presented within a further period
not exceeding thirty days.
(2) If, on an application made under
sub-section (1), the Appellate Tribunal refuses to state the case on the ground
that no question of law arises, the assessee or the Commissioner, as the case
may be, may, within six months from the date on which he is served with notice
of such refusal, apply to the High Court, and the High Court may, if it is not
satisfied with the correctness of the decision of the Appellate Tribunal,
require the Appellate Tribunal to state the case and to refer it, and on
receipt of any such requisition, the Appellate Tribunal shall state the case
and refer it accordingly.
(3) Where in the exercise of its powers
under sub-section (2), the Appellate Tribunal refuses to state a case which it
has been required by the assessee to state, the assessee may, within thirty
days from the date on which he receives notice of such refusal, withdraw his
application, and, if he does so, the fee paid shall be refunded.
Statement of case to Supreme Court in certain cases.
257. If, on an application made 33[R138] [against an order made under section
254 before the 1st day of October, 1998,]
under section 256 the Appellate
Tribunal is of the opinion that, on account of a conflict in the decisions of
High Courts in respect of any particular question of law, it is expedient that
a reference should be made direct to the Supreme Court, the Appellate Tribunal
may draw up a statement of the case and refer it through its President direct
to the Supreme Court.
Power
of High Court or Supreme Court to require statement to be amended.
258. If the High Court or the Supreme Court is not satisfied that the
statements in a case referred to it are sufficient to enable it to determine
the questions raised thereby, the Court may refer the case back to the
Appellate Tribunal for the purpose of making such additions thereto or
alterations therein as it may direct in that behalf.
Case before High Court to be heard by not less than two judges.
259. (1)
When any case has been referred to the High Court under section 256, it shall be heard by a Bench of not less
than two Judges of the High Court, and shall be decided in accordance with the
opinion of such judges or of the majority, if any, of such judges.
(2) Where there is no such majority, the judges shall state
the point of law upon which they differ, and the case shall then be heard upon
that point only by one or more of the other judges of the High Court, and such
point shall be decided according to the opinion of the majority of the judges
who have heard the case including those who first heard it.
Decision of High Court or Supreme Court on the case stated.
260. (1) The
High Court or the Supreme Court upon hearing any such case shall decide the
questions of law raised therein, and shall deliver its judgment34[R139] thereon containing the grounds on which such
decision is founded, and a copy of the judgment shall be sent under the seal of
the Court and the signature of the Registrar to the Appellate Tribunal which
shall pass such orders as are necessary to dispose of the case conformably to
such judgment.
35[R140] (1A) Where
the High Court delivers a judgment in an appeal filed before it under section
260A, effect shall be given to the order
passed on the appeal by the Assessing Officer on the basis of a certified copy
of the judgment.]
(2) The costs of any reference to the High Court or the Supreme
Court which shall not include the fee for making the reference shall be in the
discretion of the Court.
36[R141] CC.—Appeals to High Court37[R142]
Appeal to High Court.
260A. (1) An
appeal shall lie to the High Court from every order passed in appeal37a[R143] by the Appellate Tribunal, if the High Court
is satisfied that the case involves a substantial question of law37a.[R144]
(2) 38[R145] [The Chief Commissioner or the Commissioner or
an assessee aggrieved by any order passed by the Appellate Tribunal may file an
appeal to the High Court and such appeal under this sub-section shall be—]
(a) filed within
one hundred and twenty days from the date on which the order appealed against
is 39[R146] [received by the assessee or the Chief
Commissioner or Commissioner];
(c) in the form of
a memorandum of appeal precisely stating therein the substantial question of
law involved.
(3) Where the High Court is satisfied that a substantial
question of law is involved in any case, it shall formulate that question.
(4) The appeal shall be heard only on the
question so formulated, and the respondents shall, at the hearing of the
appeal, be allowed to argue that the case does not involve such question :
Provided that nothing in this sub-section shall be deemed to take away or abridge
the power of the court to hear, for reasons to be recorded, the appeal on any
other substantial question of law not formulated by it, if it is satisfied that
the case involves such question.
(5) The High Court shall decide the question of law so
formulated and deliver such judgment thereon containing the grounds on which
such decision is founded and may award such cost as it deems fit.
(6) The High Court may determine any issue which—
(a) has not been determined by the Appellate Tribunal; or
(b) has been wrongly determined by the Appellate Tribunal, by
reason of a decision on such question of law as is referred to in sub-section
(1).
41[R148] (7) Save
as otherwise provided in this Act, the provisions of the Code of Civil
Procedure, 1908 (5 of 1908), relating to appeals to the High Court shall, as
far as may be, apply in the case of appeals under this section.]
Case before
High Court to be heard by not less than two Judges.
260B. (1) When
an appeal has been filed before the High Court under section 260A, it shall be
heard by a bench of not less than two Judges of the High Court, and shall be
decided in accordance with the opinion of such Judges or of the majority, if
any, of such Judges.
(2) Where there is no such majority, the Judges shall state the
point of law upon which they differ and the case shall then be heard upon that
point only by one or more of the other Judges of the High Court and such point
shall be decided according to the opinion of the majority of the Judges who
have heard the case including those who first heard it.]
D.—Appeals to
the Supreme Court
Appeal to Supreme Court.
261. An appeal shall lie to the Supreme Court from any judgment of the High
Court delivered on a reference made under section 256 42[R149] [against an order made under section
254 before the 1st day of October, 1998
or an appeal made to High Court in respect of an order passed under section
254 on or after that date] in any case
which the High Court certifies to be a fit one for appeal to the Supreme Court.
262. (1) The
provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to
appeals to the Supreme Court shall, so far as may be, apply in the case of
appeals under section 261 as they
apply in the case of appeals from decrees of a High Court :
Provided that nothing in this section shall be deemed to affect the provisions
of sub-section (1) of section 260
or section 265.
(2) The costs of the appeal shall be in the discretion of the
Supreme Court.
(3) Where the judgment of the High Court is varied or reversed
in the appeal, effect shall be given to the order of the Supreme Court in the
manner provided in section 260 in
the case of a judgment of the High Court.
E.—Revision
by the Commissioner
Revision of orders prejudicial to
revenue.
263. (1) The
Commissioner may call for and examine the record43[R150] of any proceeding under this Act, and if he
considers that any order passed therein by the 44[R151] [Assessing] Officer is erroneous in so far43[R152] as it is prejudicial to the interests of the
revenue43[R153] , he may, after giving the assessee an
opportunity of being heard and after making or causing to be made such inquiry
as he deems necessary, pass such order thereon as the circumstances of the case
justify, including an order enhancing or modifying the assessment, or
cancelling the assessment43 [R154] and directing a fresh assessment.
45[R155] Explanation.—For the removal of
doubts, it is hereby declared that, for the purposes of this sub-section,—
(a) an order passed 46[R156] [on or before or after the 1st day of June,
1988] by the Assessing Officer shall include—
(i) an order of assessment made by the Assistant Commissioner 47[R157] [or Deputy Commissioner] or the Income-tax
Officer on the basis of the directions issued by the 48[R158] [Joint] Commissioner under section 144A;
(ii) an
order made by the 49[R159] [Joint] Commissioner in exercise of the powers
or in the performance of the functions of an Assessing Officer conferred on, or
assigned to, him under the orders or directions issued by the Board or by the
Chief Commissioner or Director General or Commissioner authorised by the Board
in this behalf under section 120;
(b) “record” 50[R160] [shall include and shall be deemed always to
have included] all records relating to any proceeding under this Act available at
the time of examination by the Commissioner;
(c) where
any order referred to in this sub-section and passed by the Assessing Officer
had been the subject matter of any appeal 51[R161] [filed on or before or after the 1st day of
June, 1988], the powers of the Commissioner under this sub-section shall extend
51[R162] [and shall be deemed always to have extended]
to such matters as had not been considered and decided in such appeal.]
52[R163] [(2) No
order shall be made under sub-section (1) after the expiry of two years from
the end of the financial year in which the order sought to be revised was
passed.]
(3) Notwithstanding anything contained in
sub-section (2), an order in revision under this section may be passed at any
time in the case of an order which has been passed in consequence of, or to
give effect to, any finding or direction contained in an order of the Appellate
Tribunal, the High Court or the Supreme Court.
Explanation.—In computing the
period of limitation for the purposes of sub-section (2), the time taken in
giving an opportunity to the assessee to be reheard under the proviso to section
129 and any period during which any
proceeding under this section is stayed by an order or injunction of any court
shall be excluded.
53[R164] 264. (1) In the case of any
order54[R165] other than an order54[R166] to which section 263 applies passed by an authority subordinate to
him, the Commissioner may, either of his own motion or on an application by the
assessee for revision, call for the record of any proceeding under this Act in
which any such order has been passed and may make such inquiry or cause such
inquiry to be made and, subject to the provisions of this Act, may pass such
order thereon, not being an order prejudicial to the assessee, as he thinks
fit.
(2) The Commissioner shall not of his own motion revise any
order under this section if the order has been made more than one year
previously.
(3) In the case of an application for revision under this section
by the assessee, the application must be made within one year from the date on
which the order in question was communicated to him or the date on which he
otherwise came to know of it, whichever is earlier:
Provided that the Commissioner may, if he is satisfied that the assessee was
prevented by sufficient cause55[R167] from making the application within that
period, admit an application made after the expiry of that period.
(4) The Commissioner shall not revise any order under this
section in the following cases—
(a) where
an appeal against the order lies to the 56[R168] [Deputy Commissioner (Appeals)] 57[R169] [or to the Commissioner (Appeals)] or to the
Appellate Tribunal but has not been made and the time within which such appeal may
be made has not expired, or, in the case of an appeal 58[R170] [to the Commissioner (Appeals) or] to the
Appellate Tribunal, the assessee has not waived his right of appeal; or
(b) where the order is pending on an appeal before the 59[R171] [Deputy Commissioner (Appeals)]; or
(c) where the order60[R172] has been made the subject of an appeal 61[R173] [to the Commissioner (Appeals) or] to the
Appellate Tribunal.
(5) Every application by an assessee for revision under this
section shall be accompanied by a fee of 62[R174] [five hundred] rupees.
63[R175] (6) On every application by an assessee for revision under this
sub-section, made on or after the 1st day of October, 1998, an order shall be
passed within one year from the end of the financial year in which such
application is made by the assessee for revision.
Explanation.—In computing the
period of limitation for the purposes of this sub-section, the time taken in
giving an opportunity to the assessee to be re-heard under the proviso to section
129 and any period during which any
proceeding under this section is stayed by an order or injunction of any court
shall be excluded.
(7) Notwithstanding anything contained in sub-section (6), an
order in revision under sub-section (6) may be passed at any time in
consequence of or to give effect to any finding or direction contained in an
order of the Appellate Tribunal, the High Court or the Supreme Court.]
Explanation 1.—An order by the
Commissioner declining to interfere shall, for the purposes of this section, be
deemed not to be an order prejudicial to the assessee.
Explanation 2.—For the purposes of
this section, the 64[R176] [Deputy Commissioner (Appeals)] shall be
deemed to be an authority subordinate to the Commissioner.
F.—General
Tax to be paid notwithstanding reference, etc.
265. Notwithstanding that a reference has been made to the High Court or the
Supreme Court or an appeal has been preferred to the Supreme Court, tax shall
be payable in accordance with the assessment made in the case.
Execution for costs awarded by Supreme Court.
266. The High Court may, on petition made for the execution of the order of
the Supreme Court in respect of any costs awarded thereby, transmit the order
for execution to any court subordinate to the High Court.
65[R177] Amendment
of assessment on appeal.
267. Where as a result of an appeal under section 246 66[R178] [or section 246A] or section 253, any
change is made in the assessment of a body of individuals or an association of persons
or a new assessment of a body of individuals or an association of persons is
ordered to be made, the 67[R179] [* * *] Commissioner (Appeals) or the
Appellate Tribunal, as the case may be, shall pass an order authorising the
Assessing Officer either to amend the assessment made on any member of the body
or association or make a fresh assessment on any member of the body or
association.]
Exclusion
of time taken for copy68.[R180]
268. In computing the period of limitation prescribed for an appeal 69[R181] [or an application] under this Act, the day on
which the order complained of was served and, if the assessee was not furnished
with a copy of the order when the notice of the order was served upon him, the
time requisite for obtaining a copy of such order, shall be excluded.
269. In this Chapter,—
“High
Court” means—
(i) in relation to
any State, the High Court for that State ;
70[R182] [(ii)
in relation to the Union
(iv) in relation to
the Union territory of the Andaman and Nicobar Islands, the High Court at
(v) in relation to
the Union territory of 73[R185] [
74[R186] (va) in
relation to the Union
75[R187] [(vi)
in relation to the Union territories
of Dadra and Nagar Haveli and 76[R188] [* * *] Daman and Diu, the High Court at
[R1]Substituted for the heading and section 246 by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Prior to its substitution sub-heading along with section 246 were amended by the Finance Act, 1964, w.e.f. 1-4-1964, Finance Act, 1966, w.e.f. 1-4-1967, Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971, Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976, Finance (No. 2) Act, 1977, w.e.f. 10-7-1978, Finance Act, 1979, w.e.f. 1-6-1979, Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984, Finance Act, 1984, w.e.f. 1-4-1985, Finance Act, 1987, w.e.f. 1-4-1988 and Finance Act, 1988, with retrospective effect from 1-4-1988/1-6-1987.
[R2]“or applications” omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R3]Inserted
by the Finance Act, 2000, w.e.f. 1-6-2000.
[R4]Inserted by the Finance Act, 1994, w.e.f. 1-6-1994
[R5]Words “in respect of any assessment for the assessment year commencing on the 1st day of April, 1988 or any earlier assessment year” omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R6]Inserted by the Finance Act, 1992, w.e.f. 1-4-1993.
[R7]Words “in respect of any assessment for the assessment year commencing
on the 1st day of April, 1988 or any earlier
assessment year” omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R8]Inserted by the Finance Act, 1992, w.e.f. 1-4-1993
[R9]“section 271C, section 271D, section 271E,” omitted by the Finance Act, 1990, w.e.f. 1-4-1990
[R10]Substituted for “section 271E or section 272A” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R11]Words “sub-section (1) of section 271,” omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R12]Inserted by the Finance Act, 2000, w.e.f. 1-6-2000
[R13]Inserted by the Finance Act, 2000, w.e.f. 1-6-2000
[R14]Substituted for “an order specified in sub-section (1) where such order” by the Finance Act, 1994, w.e.f. 1-6-1994
[R15]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R16]Inserted by the Income-tax (Amendment) Act, 1997, w.e.f. 1-1-1997
[R17]Inserted by the Finance Act, 1990, w.e.f. 1-4-1990
[R18]Inserted by the Finance Act, 1990, w.e.f. 1-4-1990
[R19]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R20]Substituted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R21]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Original section 246A was inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989 and later on omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R22]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004
[R23]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003
[R24]Inserted by the Finance Act, 2000, w.e.f. 1-6-2000
[R25]The italicised word, figures and letters shall be inserted by the
Finance Act, 2005, w.e.f. 1-4-2006.
[R26]Inserted by the Finance Act, 2000, w.e.f 1-6-2000
[R27]Notified “appointed day” is 1-10-1998
[R28]Prior to omission, section 247 was amended by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978, the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 and omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989 and later reintroduced by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R29]Words “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner (Appeals)” was substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 and “or, as the case may be, the” was inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R30]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R31]See rules 45 and 46 and Form No. 35 for form of appeal to Commissioner (Appeals).
[R32] Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998
[R33]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R34]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975
[R35]Inserted by the Finance Act, 2000, w.e.f. 1-6-2000
[R36]Words “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner (Appeals)” was substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 and “or, as the case may be, the” was inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R37]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R38]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975
[R39]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R40]Words “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner (Appeals)” was substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 and “or, as the case may be, the” was inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R41]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R42]Substituted for “this sub-section” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R43]See rule 46A. Appellate Orders should be issued within 15 days of last hearing - See Instruction No. 20/2003, dated 23-12-2003
[R44]Words “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner (Appeals)” was substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 and “or, as the case may be, the” was inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R45]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R46]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R47]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R48]Words “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner (Appeals)” was substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 and “or, as the case may be, the” was inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R49]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R50]Words “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner (Appeals)” was substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 and “or, as the case may be, the” was inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R51]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R52] Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R53]Words “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner (Appeals)” was substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 and “or, as the case may be, the” was inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R54]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R55]Words “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner (Appeals)” was substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 and “or, as the case may be, the” was inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R56]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R57]Words “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner (Appeals)” was substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 and “or, as the case may be, the” was inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R58]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R59]Words “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner (Appeals)” was substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 and “or, as the case may be, the” was inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R60]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R61]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999
[R62]Words “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner (Appeals)” was substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 and “or, as the case may be, the” was inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R63]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R64]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R65]Words “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner (Appeals)” was substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 and “or, as the case may be, the” was inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R66]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R67]Words “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner (Appeals)” was substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 and “or, as the case may be, the” was inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R68]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R70]The portion beginning with the words “or he may set aside” and ending
with the words “on the basis of such fresh assessment;” omitted by the Finance
Act, 2001, w.e.f. 1-6-2001. Prior to its omission, the quoted portion, as
amended by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978, Direct Tax Laws
(Amendment) Act, 1987, w.e.f. 1-4-1988 and the Finance (No. 2) Act, 1998,
w.e.f. 1-10-1998, read as under :
“or he may set aside the assessment and refer the case back to the Assessing Officer for making a fresh assessment in accordance with the directions given by the Commissioner (Appeals) and after making such further inquiry as may be necessary, and the Assessing Officer shall thereupon proceed to make such fresh assessment and determine, where necessary, the amount of tax payable on the basis of such fresh assessment;”
[R71]Words “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner (Appeals)” was substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 and “or, as the case may be, the” was inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R72]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R73]Words “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner (Appeals)” was substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 and “or, as the case may be, the” was inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R74]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R75]Words “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner (Appeals)” was substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 and “or, as the case may be, the” was inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R76]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R77]Substituted by the Finance Act, 1981, w.e.f. 1-4-1981
[R78]Substituted for “Central” by the Finance (No. 2) Act, 1998, w.e.f. 1-8-1998
[R79]Substituted for “I” by the Finance (No. 2) Act, 1998, w.e.f. 1-8-1998
[R80]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-8-1998.
[R81]Substituted by the Finance Act, 2002, w.e.f. 1-4-2002. Prior to its
substitution, sub-section (3) read as under :
“(3) The Central Government shall ordinarily appoint a judicial member of the Appellate Tribunal to be the President thereof.”
[R82]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972
[R83]Inserted by the Finance Act, 1984, w.e.f. 1-4-1984.
[R85]Substituted for “A Vice-President” by the Finance Act, 1984, w.e.f. 1-4-1984
[R86]See rule 47(1) and Form Nos. 36 and 36A for form of appeal to Appellate Tribunal and form of cross-objections
[R87]See also Instructions issued by the Income-tax Appellate Tribunal.
[R88]Substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R89]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998
[R90]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R91]“sub-section (2) of section 131,” omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R92] Inserted by the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964
[R93].“section 246A,” omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier, it was inserted by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same date
[R94]Substituted for “or section 271” by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976
[R95]Substituted by the Income-tax (Amendment) Act, 1997, w.e.f. 1-1-1997.
Prior to its substitution, clause (b), as inserted by the Finance Act,
1995, w.e.f. 1-7-1995, read as under :
“(b) an order passed by an Assessing Officer under clause (c)
of section 158BC; or”
Earlier clause (b) was amended by the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964, the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976, the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978 and later on omitted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984
[R96]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004
[R97]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R98]Inserted by the Finance Act, 2002, w.e.f. 1-6-2002.
[R99]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976
[R100] “or under section 285A” omitted by the Finance Act, 1988, w.e.f. 1-4-1988. Omitted words were earlier inserted by the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964
[R101]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R102]Substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R103]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998
[R104]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R105]Inserted by the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964.
[R106]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R107]Inserted by the Finance Act, 1995, w.e.f. 1-7-1995.
[R108]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R109]Substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R110] Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R112]Substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R113]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R114]Substituted for sub-section (6) by the Finance
(No. 2) Act, 1998, w.e.f. 1-10-1998. Prior to its substitution, sub-section
(6), as amended by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971,
the Finance Act, 1981, w.e.f. 1-6-1981 and the Finance Act, 1992, w.e.f.
1-6-1992 and later on substituted by the Finance Act, 1993, w.r.e.f. 1-6-1992,
read as under :
“(6) An appeal to the
Appellate Tribunal shall be in the prescribed form and shall be verified in the
prescribed manner and shall, in the case of an appeal made on or after the 1st
day of June, 1992, irrespective of the date of initiation of the assessment
proceedings relating thereto, be accompanied by a fee of,—
(a) where the total income of the assessee as
computed by the Assessing Officer in the case to which the appeal relates is
one lakh rupees or less, two hundred and fifty rupees;
(b) where the total income of the assessee
computed as aforesaid in the case to which the appeal relates is more than
one lakh rupees, one thousand and five hundred rupees :
Provided that no such fee shall be payable in the case of an appeal referred to in sub-section (2) or a memorandum of cross-objections referred to in sub-section (4).”
[R115]See rule 47 and Form Nos. 36 & 36A
[R116]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R118]Omitted by the Taxation Laws (Amendment) Act,
1972, w.e.f. 1-1-1973. Original sub-section was inserted by the Finance Act,
1964, w.e.f. 1-4-1964. In connection with this amendment, section 25 of the
Taxation Laws (Amendment) Act, 1972 has made the following independent
provision:
“Savings and special provision.—(1) Notwithstanding the omission of sub-section (1A) of section 254 of the Income-tax Act, 1961 (43 of 1961), by section 3 of this Act, every requisition by an appellant for the making of a reference under that sub-section and every reference made under that sub-section before such omission shall be dealt with as if the said section has not been omitted, and, save as aforesaid, no such reference shall be made after such omission.”
[R121]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R122]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998
[R123]Sub-sections (2A) and (2B) inserted by the Finance Act, 1999, w.e.f. 1-6-1999
[R124]Inserted by the Finance Act, 2000, w.e.f. 1-6-2000
[R125]Provisos inserted by the Finance Act, 2001, w.e.f. 1-6-2001
[R126]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R127]Words “Chief Commissioner or” were omitted by the Finance (No. 2) Act, 1991, w.e.f. 27-9-1991
[R128]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999
[R130]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R131]Substituted for “one hundred thousand rupees” by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “one hundred thousand rupees” was substituted for “forty thousand rupees” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989 and “forty thousand rupees” was substituted for “twenty-five thousand rupees” by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971
[R133]Now the Code of Criminal Procedure, 1973 (2 of 1974).
[R134]See rule 48 and Form No. 37 for form of Reference to High Court.
[R135]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R136]Substituted for “one hundred and twenty-five rupees” by the Finance Act, 1981, w.e.f. 1-6-1981. Earlier “one hundred and twenty-five rupees” was substituted for “rupees one hundred” by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.
[R137]For the meaning of the terms/expressions “question”, “question of law” and “question of law arising out of such order”
[R138]Inserted by the Finance (No. 2) Act, 1998, w.e.f 1-10-1998
[R140]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998
[R141]Sub-heading “CC” and sections 260A and 260B inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R143]For the meaning of the expression “every order passed in appeal” and “substantial question of law”
[R144]For the meaning of the expression “every order passed in appeal” and “substantial question of law”
[R145]Substituted for “An appeal under this sub-section shall be—” by the Finance Act, 1999, w.e.f. 1-6-1999.
[R146]Substituted for “communicated to the appellant” by the Finance Act, 1999, w.e.f. 1-6-1999
[R147]Omitted by the Finance Act, 1999, w.e.f.
1-6-1999. Prior to its omission, clause (b) read as under
:
“(b) accompanied by a fee of ten thousand rupees where such appeal is filed by an assessee;”
[R148]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999
[R149]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R150]For the meaning of the terms and expressions “record”, “insofar as”, “prejudicial to the interests of the revenue” and “assessment”
[R151] Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R152]For the meaning of the terms and expressions “record”, “insofar as”, “prejudicial to the interests of the revenue” and “assessment”
[R153]For the meaning of the terms and expressions “record”, “insofar as”, “prejudicial to the interests of the revenue” and “assessment”
[R154]For the meaning of the terms and expressions “record”, “insofar as”, “prejudicial to the interests of the revenue” and “assessment”.
[R155]Substituted by the Finance Act, 1988, w.e.f. 1-6-1988. Prior to its substitution, Explanation was inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984 and amended by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R156]Inserted by the Finance Act, 1989, w.r.e.f. 1-6-1988
[R157]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998
[R158]Substituted for “Deputy” by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998
[R159]Substituted for “Deputy” by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R160]Substituted for “includes” by the Finance Act, 1989, w.r.e.f. 1-6-1988
[R161]Inserted by the Finance Act, 1989, w.r.e.f. 1-6-1988
[R162]Inserted by the Finance Act, 1989, w.r.e.f. 1-6-1988.
[R163]Substituted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.
[R164] See also Circular No. 367, dated 26-7-1983 and Letter [F. No. 6/52/68-ITJ], dated 30-7-1970
[R168]Substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R169]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R170]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R171] Substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R173]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R174]Substituted for “twenty-five” by the Finance Act, 2001, w.e.f. 1-6-2001
[R175]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998
[R176]Substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R177]Substituted by the Finance Act, 1992, w.e.f. 1-4-1993. Prior to its substitution, section 267 was amended by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978, the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988/1-4-1989 and the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R178]Inserted by the Finance Act, 2000, w.e.f. 1-6-2000.
[R179]Words “Deputy Commissioner (Appeals) or the” omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998
[R180]See Circular No. 1, dated 24-4-1958
[R181]Inserted by the Finance Act, 1990, w.e.f. 1-4-1990. Earlier these words were omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989
[R182]Substituted for clause (ii) by the Punjab Reorganisation and Delhi High Court (Adaptation of Laws on Union Subjects) Order, 1968, with retrospective effect from 1-11-1966
[R183]Omitted by the State of
[R184]Clause (iii) omitted by the Finance Act, 1994, w.e.f. 1-4-1995. Prior to omission, clause (iii) was substituted by the North-Eastern Areas (Reorganisation) (Adaptation of Laws on Union Subjects) Order, 1974, with retrospective effect from 21-1-1972
[R185]Substituted for “the Laccadive, Minicoy and
Amindivi Islands” by the Laccadive, Minicoy and
[R186]Inserted by the Punjab Reorganisation and Delhi High Court (Adaptation of Laws on Union Subjects) Order, 1968, with retrospective effect from 1-11-1966.
[R187]Inserted by the Taxation Laws (Extension to
[R188]Word “