CHAPTER XX
APPEALS AND PROVISION
23[R1] [A.—Appeals 24[R2] [***] to the Deputy Commissioner (Appeals) and
Commissioner (Appeals)
Appealable orders.
246.[R3] (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) against such order—
(a) an
order against the assessee, where the assessee denies his liability to be
assessed under this Act 25[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 26[R5] [***] 27[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 28[R7] [***] 29[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, 30 [R9] [***] 31[R10] [section 272A,
section 272AA or section 272BB];
(iii) 32[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.
(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) against such order—
(a) 33[R12] [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) 34[R13] [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
35[R14] (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 271B36[R15] [or section
271BB];
37[R16] (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;
38[R17] (ff) an order made by a Deputy Commissioner
imposing a penalty under section 272AA;]
39[R18] (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.]
40[R19] [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 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;
(b) an order of assessment, re-assessment or re-computation under
section 147 or section 150;
(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;
(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, 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 cases of such person or classes of person, 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.
(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 notification41[R20] in the Official
Gazette.]
Appeal by partner.
247. 42[R21] [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 43[R22] [* * *] 44[R23] [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 form 45[R24] and shall be
verified in the prescribed manner 46[R25] [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;]
46a[R26] (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:
47[R27] [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.
(3) The
48[R28] [* * *] 49 [R29] [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.
50[R30] (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, 51[R31] [in a case
falling under clause (b) and] on an application made by the appellant in
this behalf, the 52[R32] [* * *] 53[R33] [Commissioner
(Appeals)] may, for any good and sufficient reason to be recorded in writing,
exempt him from the operation of the provisions of 54[R34] [that clause].]
Procedure
in appeal.
55[R35] 250. (1) The 55a[R36] [* * *] 55b[R37] [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 56[R38] [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 57[R39] [Assessing]
Officer, either in person or by a representative.
(3) The
58[R40] [* * *] 59 [R41] [Commissioner
(Appeals)] shall have the power to adjourn the hearing of the appeal from time
to time.
(4) The
58[R42] [* * *] 59[R43] [Commissioner
(Appeals)] may, before disposing of any appeal, make such further inquiry as he
thinks fit, or may direct the 57[R44] [Assessing]
Officer to make further inquiry and report the result of the same to the 58[R45] [* * *] 59[R46] [Commissioner
(Appeals)].
(5) The
58[R47] [* * *] 59[R48] [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 58[R49] [* * *] 59[R50] [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 58[R51] [* * *] 59[R52] [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.
59a[R53] (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 60[R54] [* * *] 61[R55] [Commissioner
(Appeals)] shall communicate the order passed by him to the assessee and to the
62[R56] [Chief
Commissioner or Commissioner].
Powers
of the 60[R57] [* * *] 61[R58] [Commissioner (Appeals)].
251.(1) In disposing of an appeal, the 60[R59] [* * *] 61[R60] [Commissioner
(Appeals)] shall have the following powers—
(a) in
an appeal against an order of assessment, he may confirm, reduce, enhance or annul
the assessment; or he may set aside the assessment and refer the case back to
the 63[R61] [Assessing]
Officer for making a fresh assessment in accordance with the directions given
by the 60[R62] [* * *] 61[R63] [Commissioner
(Appeals)] and after making such further inquiry as may be necessary, and the 63a[R64] [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;
(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
64[R65] [* * *] 65[R66] [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 64 [R67] [* * *]65[R68] [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 64[R69] [* * *] 65[R70] [Commissioner
(Appeals)] by the appellant.
B.-Appeals to the Appellate Tribunal
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.
66[R71] (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 67[R72] [Indian] Legal
Service and has held a post in Grade 68[R73] [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 69[R74] [Additional]
Commissioner of Income-tax or any equivalent or higher post for at least three
years.]
(3) The
Central Government shall ordinarily appoint a judicial member of the Appellate
Tribunal to be the President thereof.
70[R75] (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.]
71[R76] (4A) The Central Government may appoint
one of the Vice-Presidents of the Appellate Tribunal to be the Senior
Vice-President thereof.]
72[R77] (5) 73[R78] [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.
74[R79] Appeals to the
Appellate Tribunal.
75[R80] 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 76[R81] [Deputy
Commissioner (Appeals)] 77[R82] [before the 1st
day of October, 1998] 78[R83] [or, as the case
may be, a Commissioner (Appeals)] under 79[R84] [***] 80[R85] [section 154], 81[R86] [***] section
250, 82 [R87] [section 271,
section 271A or section 272A]; or
83[R88] (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]
(c) an order passed by a Commissioner 83a[R89] [under section 12AA or]
under section 263 84[R90] [or under
section 272A] 85[R91] [***] or an
order passed by him under section 154 amending his order under section 263] 86[R92] [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 87[R93] [Deputy Commissioner
(Appeals)] 88[R94] [before the 1st
day of October, 1998] 89[R95] [or, as the case
may be, a Commissioner (Appeals)] under 90[R96] [section 154 or]
section 250, direct the 91[R97] [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 :
92[R98] [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 93[R99] [Assessing]
Officer or the assessee, as the case may be, on receipt of notice that an
appeal against the order of the 94[R100] [Deputy Commissioner (Appeals)] 95[R101] [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 of the 95a[R102] [Deputy Commissioner (Appeals)] 95[R103] [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.
96 [R104] (6) An appeal to
the Appellate Tribunal shall be in the prescribed form 96a[R105] 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,
96b[R106] (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.]
Orders
of Appellate Tribunal.
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 fit.
(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 record, amend
any order passed by it under sub-section (1), and shall make such amendment if
the mistake is brought to its notice by the assessee or the 98[R108] [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 :
99[R109] [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.]
99a[R110] [(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) of section 253.
(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 1[R111] [ 2[R112] [***] Commissioner].
(4) Save
as provided in section 256 2a[R113] [or section 260A], orders passed by
the Appellate Tribunal on appeal shall be final.
Procedure
of Appellate Tribunal.
3[R114] 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 4[R115] [Assessing] Officer in the case does not exceed 5[R116] [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.
6[R117] (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)7[R118] .
C.-Reference to High Court
Statement
of case to the High Court.
256. s8[R119] (1) The assessee or the Commissioner may, within sixty days of the date
upon which he is served with notice of an order 9[R120] [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 10[R121] [two hundred rupees], require the Appellate Tribunal to
refer to the High Court any question of law arising out of such order 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 11[R122] [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 judgment 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.
12[R123] (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 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.
13[R124] [CC.—Appeals
to High Court
Appeal to High Court.
260A.(1) An appeal shall lie to the High Court
from every order passed in appeal by the Appellate Tribunal, if the High Court is
satisfied that the case involves a substantial question of law.
(2) 13a[R125] [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 13b[R126] [received by the
assessee or the Chief Commissioner or Commissioner];
(b) 13c[R127] [***]
(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).
13d[R128] [(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 14[R129] [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.
Hearing
before 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 record of any proceeding under this Act, and if he considers that
any order passed therein by the 15[R130] [Assessing] Officer is erroneous in so far as it is
prejudicial to the interests of the revenue, 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 assessment and directing a fresh assessment.
16[R131] [Explanation.—For the removal
of doubts, it is hereby declared that, for the purposes of this sub-section,—
(a) an order passed 17[R132] [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 18[R133] [or Deputy Commissioner] or the Income-tax Officer on the
basis of the directions issued by the 19[R134] [Joint] Commissioner under section 144A;
(ii) an
order made by the 19[R135] [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” 20[R136] [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 20a[R137] [filed on or before or after the 1st day of June, 1988],
the powers of the Commissioner under this sub-section shall extend 20a[R138] [and shall be deemed always to have extended] to such
matters as had not been considered and decided in such appeal.]
21[R139] (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.
Revision
of other orders.
22[R140] 264. (1) In the
case of any order other than an order 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 cause
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 23[R141] [Deputy Commissioner (Appeals)] 24[R142] [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 25 [R143] [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 26[R144] [Deputy Commissioner (Appeals)]; or
(c) where the order has been made the subject of an appeal 27[R145] [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 twenty-five rupees.
28[R146] (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, 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 29[R147] [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.
30 [R148] [Amendment of assessment on appeal.
267. Where as a result of an appeal
under section 246 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 31[R149] [* * *] 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 copy.
268. In computing the period of
limitation prescribed for an appeal 32 [R150] [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.
Definition of “High Court”
269. In this Chapter,—
“High Court” means—
(i) in relation to
any State, the High Court for that State ;
33[R151] (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 36[R154] [
37[R155] (va) in relation to the Union
38[R156] (vi) in
relation to the Union territories of Dadra and Nagar Haveli and 39[R157] [* * *] Daman and Diu, the High Court at
(vii) in relation to the Union
[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, as 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, stood as under:
‘A.—Appeals to the Deputy Commissioner (Appeals)
and Commissioner (Appeals)
[R2]“or applications” omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R3]Appealable orders.—(1) Subject to the provisions of sub-section (2), any assessee aggrieved by any of the following orders of any Assessing Officer may appeal to the Deputy Commissioner (Appeals) against such order—
(a) [***]
(b) an order imposing a fine under sub-section (2) of section 131;
(c) an order against the assessee, where the assessee denies his liability to be assessed under this Act 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;
(d) an order under section 146 refusing to reopen an assessment made under section 144;
(e) an order of assessment, reassessment or recomputation under section 147 or section 150;
(f) 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;
(g) an order made under section 163 treating the assessee as the agent of a non-resident;
(h) an order under sub-section (2) or sub-section (3) of section 170;
(i) an order under section 171;
(j) an order under clause (b) of sub-section (1) or under sub-section (2) or sub-section (3) or sub-section (5) of section 185;
(k) an order cancelling the registration of a firm under sub-section (1) or under sub-section (2) of section 186;
(l) an order under section 201;
(m) an order under section 216;
(n) an order under section 237;
(o) an order imposing a penalty under—
(i) section 140A, or
(ia) section 221, or
(ii) section 270, or
(iii) section 271, or
(iiia) section 271A, or
(iv) section 272, or
(iva) section 272B, or section 272BB, or
(v) section 273 [***]
[***]
Explanation.—[***]
(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) against such order—
(a) an order specified in clauses (b) to (h) (both inclusive) and clauses (l) to (o) (both inclusive) of sub-section (1) 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 years, made against the assessee, being a company;
(b) an order specified in clauses (c) to (o) (both inclusive) of sub-section (1) where such order is made by the Deputy Commissioner in exercise of the powers or functions conferred on or assigned to him under section 125 or section 125A;
(c) an order made by the Deputy Commissioner imposing a fine under sub-section (2) of section 131;
(d) an order of assessment made after the 30th day of September, 1984, on the basis of directions issued by the Deputy Commissioner under section 144A;
(e) [***] ;
(f) an order of assessment under sub-section (3) of section 143 or section 144 made on the basis of directions issued by the Deputy Commissioner under section 144B;
(ff) an order made by the Deputy Commissioner under section 154;
(g) an order imposing a penalty under clause (c) of sub-section (1) of section 271 where such penalty has been imposed with the previous approval of the Deputy Commissioner under the proviso to clause (iii) of sub-section (1) of that section;
(gg) an order imposing a penalty under section 271B;
(h) an order made by a Deputy Commissioner imposing a penalty under section 272A;
(i) an order made by an Assessing Officer under the provisions of this Act in the case of such persons 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) Every appeal against an order specified in sub-section (2) which is pending immediately before the appointed day before an Appellate Assistant Commissioner or a Commissioner and any matter arising out of or connected with such appeal and which is so pending shall stand transferred on that day 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 proceedings or any part thereof be reopened or that he be reheard.
(4) Every appeal against an order specified in clauses (b) to (h) (both inclusive) and clauses (l) to (o) (both inclusive) of sub-section (1) made against the assessee, being a company, which is pending immediately before the 1st day of June, 1979, before an Appellate Assistant Commissioner and any matter arising out of or connected with such appeal and which is so pending shall stand transferred on the day 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 reheard.
(5) Notwithstanding anything contained in sub-section (1), 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 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 reopened or that he be reheard.
Explanation.—For the purposes of this section,—
(a) “appointed day” means the date appointed under section 39 of the Finance (No. 2) Act, 1977 (29 of 1977);
(b) [***]
(c) “status” means the category under which the assessee is assessed as “individual”, “Hindu undivided family” and so on.’
[R4]Inserted by the Finance Act, 1994, w.e.f. 1-6-1994.
[R5]“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]“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]“sub-section (1) of section 271,” omitted, by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R12]Substituted for “an order specified in sub-section (1) where such order” by the Finance Act, 1994, w.e.f. 1-6-1994.
[R13]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R15]Inserted by the Finance Act, 1990, w.e.f. 1-4-1990.
[R16]Inserted by the Finance Act, 1990, w.e.f. 1-4-1990.
[R17]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R18]Substituted, by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989 for the following :
“(g) an order imposing a penalty under clause (c) of sub-section (1) of section 271, as it 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, where such penalty has been imposed with the previous approval of the Deputy Commissioner under the proviso to clause (iii) of sub-section (1) of that section;”
[R19]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.
[R20]Notified “appointed day” is 1-10-1998.
[R21]Prior to omission, section 247, as 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, read as under:
“247. Appeal by partner.—Where the partners of a firm are individually assessable on their shares in the total income of the firm, any such partner may appeal to the Deputy Commissioner (Appeals) or, as the case may be, the Commissioner (Appeals) against any order of an Assessing Officer determining the amount of the total income or the loss of the firm or the apportionment thereof between the several partners, but he cannot agitate such matters in any appeal preferred against an order of assessment determining his own total income or loss.”
[R22]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.
[R23]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R24]See rules 45 and 46 and Form No. 35 for form of appeal to Commissioner (Appeals).
[R25]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R26]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R27]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R28]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.
[R29]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R30]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R31]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R32]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.
[R33]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R34]Substituted for “this sub-section” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R35]See rule 46A.
[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]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R39]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[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.
[R42]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]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.
[R47]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.
[R48]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R49]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]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.
[R53]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R54]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]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[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.
[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.
[R61]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1998, w.e.f. 1-4-1988.
[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.
[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.
[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.
[R69]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, 1998, w.e.f. 1-8-1998.
[R75]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R76]Inserted by the Finance Act, 1984, w.e.f. 1-4-1984.
[R77]For functions and powers delegated to Vice-President.
[R78]Substituted for “A Vice-President” by the Finance Act, 1984, w.e.f. 1-4-1984.
[R79]See rule 47(1)and Form Nos. 36 and 36A for form of appeal to Appellate Tribunal and form of cross-objections.
[R80]See also Instruction : Issued by the Income-tax Appellate Tribunal.
[R81]Substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R82]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R83]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978
[R84]“Sub-section (2) of section 131,” omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R85]Inserted by the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964.
[R86]“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.
[R87]Substituted for “or section 271” by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[R88]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.
[R91]“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.
[R93]Substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R100]Substituted for “Appellate Assistant Commissioner”, by the Direct Tax Laws (Amendment) Act, 1987 , w.e.f. 1-4-1988.
[R103]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).”
[R104]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).”
[R106]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R107]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.”
[R108]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R109]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R110]Sub-sections (2A) and (2B) inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R111]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R112]Words “Chief Commissioner or” were omitted by the Finance (No. 2) Act, 1991, w.e.f. 27-9-1991.
[R113]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R114]See also Letter [UO No. F. 38-AD(AT)/71], dated 9-8-1971.
[R115]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R116]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.
[R117]See Standing Order notified vide Notification F. No. 63-Ad (AT)/97, dated 16-9-1997.
[R118]Now the Code of Criminal Procedure, 1973 (2 of 1974).
[R119]See rule 48 and Form No. 37 for form of Reference to High Court.
[R120]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R121]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.
[R122]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R123]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R124]Sub-heading “CC” and sections 260A and 260B, inserted, by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R125]Substituted for “An appeal under this sub-section shall be—”by the Finance Act, 1999, w.e.f. 1-6-1999.
[R126]. Substituted for “communicated to the appellant”, by the Finance Act, 1999, w.e.f. 1-6-1999
[R127]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;”
[R128]Inserted, by the Finance Act, 1999, w.e.f. 1-6-1999.
[R129]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R130]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R131]Substituted by the Finance Act, 1988, w.e.f. 1-6-1988. Prior to its substitution, Explanation, as 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, read as under :
“Explanation.—For the removal of doubts, it is hereby declared that, for the purposes of this sub-section, an order passed by the Assessing Officer shall include—
(a) an order of assessment made on the basis of directions issued by the Deputy Commissioner under section 144A or section 144B; and
(b) an order made by the Deputy Commissioner in exercise of the powers or in performance of the functions of an Assessing Officer conferred on, or assigned to, him under clause (a) of sub-section (1) of section 125 or under sub-section (1) of section 125A.”
[R132]Inserted by the Finance Act, 1989, with retrospective effect from 1-6-1988.
[R133]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R134]Substituted for “Deputy”, by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R135]Substituted for “Deputy”, by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R136]Substituted for “includes” by the Finance Act, 1989, w.r.e.f. 1-6-1988.
[R137]Inserted by the Finance Act, 1989, w.r.e.f. 1-6-1988.
[R138]Inserted by the Finance Act, 1989, w.r.e.f. 1-6-1988.
[R139]Substituted for the following by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984:
[R140]“(2) No order shall be made under sub-section (1)—
(a) to revise an order of reassessment made under section 147, or
(b) after the expiry of two years from the date of the order sought to be revised.”
[R141]See also Circular No. 367, dated 26-7-1983 and Letter [F. No. 6/52/68-ITJ], dated 30-7-1970.
[R142]Substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R143]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R144]Inserted, by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R145]Substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R146]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R147]Substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R148]Substituted by the Finance Act, 1992, w.e.f. 1-4-1993. Prior to its substitution, section 267, as 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, read as under :
“267. Amendment of assessment on appeal.—Where as the result of an appeal under section 246 or section 253, any change is made in the assessment of a firm or body of individuals or an association of persons or a new assessment of a firm or a body of individuals or an association of persons is ordered to be made, the Deputy Commissioner (Appeals), or the 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 partner of the firm or any member of the body or association or make a fresh assessment on any partner of the firm or on any member of the body or association.”
[R149]Words “Deputy Commissioner (Appeals) or the” omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R150]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.
[R151]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.
[R152]Omitted
by the State of
[R153]Clause (iii) omitted by the Finance Act, 1994, w.e.f. 1-4-1995. Prior to omission, clause (iii), as substituted by the North-Eastern Areas (Reorganisation) (Adaptation of Laws on Union Subjects) Order, 1974, with retrospective effect from 21-1-1972, read as under :
“(iii) in relation to
the Union territories of Arunachal Pradesh and Mizoram, the
Gauhati High Court (the High Court of Assam, Nagaland, Meghalaya, Manipur and
Tripura) ;”
[R154]Substituted
for “the Laccadive, Minicoy and Amindivi Islands” by the Laccadive, Minicoy and
[R155]Inserted by the Punjab Reorganisation and Delhi High Court (Adaptation of Laws on Union Subjects) Order, 1968, with retrospective effect from 1-11-1966.
[R156]Inserted
by the Taxation Laws (Extension to
[R157]Word
“