CHAPTER
XX
APPEALS AND REVISION
72[R1] [A.—Appeals 73[R2] [***] to
the Deputy Commissioner (Appeals)
and Commissioner (Appeals)
Appealable orders.
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) 74[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 assessed75[R4]
under this Act 76[R5] [,
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 77[R6] [***]
78[R7] [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 79[R8] [***]
80[R9] [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,
81[R10] [***] 82[R11] [section 272A, section 272AA or section
272BB];
(iii) 83[R12] [***] 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.
84[R13] [(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)
85[R14] [before
the 1st day of June, 2000] against such order—
(a) 86[R15] [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) 87[R16] [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;
88[R17] [(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 89[R18] [or section 271BB];
90[R19] [(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;
91[R20] [(ff) an order made by a Deputy Commissioner
imposing a penalty under section 272AA;]
92[R21] [(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.]
93[R22] [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;
93a[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;
94[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, 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.
94[R25] [(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 notification95[R26] in the Official Gazette.]
Appeal
by partner.
247. 96[R27] [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 97[R28] [* *
*] 98[R29] [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 form99[R30] and
shall be verified in the prescribed manner 1[R31] [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;]
2[R32] [(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:
3[R32] [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.
4[R33] [(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 5[R34] [***]
6[R35] [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.
7[R36] [(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, 8[R37] [in a
case falling under clause (b) and] on an application made by the
appellant in this behalf, the 9[R38] [* *
*] 10[R39] [Commissioner
(Appeals)] may, for any good and sufficient reason to be recorded in writing,
exempt him from the operation of the provisions of 11[R40] [that
clause].]
Procedure in appeal.
12[R41] 250. (1) The 13[R42] [* *
*] 14[R43] [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 15[R44] [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 16[R45] [Assessing]
Officer, either in person or by a representative.
(3) The 17[R46] [* *
*] 18[R47] [Commissioner
(Appeals)] shall have the power to adjourn the hearing of the appeal from time
to time.
(4) The 17[R48] [* *
*] 18[R49] [Commissioner
(Appeals)] may, before disposing of any appeal, make such further inquiry as he
thinks fit, or may direct the 19[R50] [Assessing]
Officer to make further inquiry and report the result of the same to the 17[R51] [* *
*] 18[R52] [Commissioner
(Appeals)].
(5) The
17[R53] [* *
*] 18[R54] [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 17[R55] [* *
*] 18[R56] [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 17[R57] [* *
*] 18[R58] [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.
20[R59] [(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 21[R60] [* *
*] 22[R61] [Commissioner
(Appeals)] shall communicate the order passed by him to the assessee and to the
23[R62] [Chief
Commissioner or Commissioner].
Powers
of the 21[R63] [* * *] 22[R64] [Commissioner
(Appeals)].
251. (1) In
disposing of an appeal, the 21[R65] [* *
*] 22[R66] [Commissioner
(Appeals)] shall have the following powers—
(a) in an appeal against an order of
assessment, he may confirm, reduce, enhance or annul the assessment24[R67] ; 25[R68] [* * *]
(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 26[R69] [* *
*] 27[R70] [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 26[R71] [* *
*] 27[R72] [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 26[R73] [* *
*] 27[R74] [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.
28[R75] [(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 29[R76] [Indian]
Legal Service and has held a post in Grade 30[R77] [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 Union or a State, requiring special knowledge of law after
he became an advocate.
(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 31[R78] [Additional]
Commissioner of Income-tax or any equivalent or higher post for at least three
years.]
32[R79] [(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.]
33[R80] [(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.]
34[R81] [(4A) The Central Government may appoint one of
the Vice-Presidents of the Appellate Tribunal to be the Senior Vice-President
thereof.]
35[R82] (5) 36[R83] [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.
37[R84] Appeals to the Appellate Tribunal.
38[R85] 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 39[R86] [Deputy Commissioner (Appeals)] 40[R87] [before the 1st day of October, 1998] 41[R88] [or, as the case may be, a Commissioner
(Appeals)] under 42[R89] [***] 43[R90] [section 154], 44[R91] [***] section 250, 45[R92] [section
271, section 271A or section 272A]; or
46[R93] [(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 47[R94] [under section 12AA or] under section 263 48[R95] [or under section 271] 49[R96] [or under section 272A] 50[R97] [***] or an order passed by him under
section 154 amending his order under section 263] 51[R98] [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 52[R99] [Deputy Commissioner (Appeals)] 53[R100] [before
the 1st day of October, 1998] 54[R101] [or,
as the case may be, a Commissioner (Appeals)] under 55[R102] [section
154 or] section 250, direct the 56[R103] [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 :
57[R104] [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 58[R105] [Assessing] Officer or the assessee, as the
case may be, on receipt of notice that an appeal against the order of the 59[R106] [Deputy Commissioner (Appeals)] 60[R107] [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
order61[R108] of the 62[R109] [Deputy Commissioner (Appeals)] 60[R110] [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.
63[R111] [(6)
An appeal to the Appellate Tribunal shall be in the prescribed form64[R112] 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,
65[R113] [(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 fit66[R114] .
(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 record68[R116] , amend any order passed by it under
sub-section (1), and shall make such amendment68[R117] if the mistake is brought to its notice by
the assessee or the 69[R118] [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 :
70[R119] [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.]
71[R120] [(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) 72[R121] [or sub-section (2)] of section 253 :
73[R122] [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 74[R123] [75[R124] [***] Commissioner].
(4) Save as provided in 76[R125] [or section 260A], orders passed by the Appellate
Tribunal on appeal shall be final.
Procedure
of Appellate Tribunal.
77[R126] 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 78[R127] [Assessing] Officer in the case does not
exceed 79[R128] [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.
80[R129] (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)81[R130] .
C.—Reference to High Court
Statement
of case to the High Court.
256. 82[R131] (1) The
assessee or the Commissioner may, within sixty days of the date upon which
he is served
with notice of
an order 83[R132] [passed
before the1st 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 84[R133] [two hundred rupees], require the Appellate
Tribunal to refer to the High Court any question of law arising out of such
order85 [R134] 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 86[R135] [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 judgment87[R136] 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.
88[R137] [(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.
89[R138] [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) 90[R139] [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 91[R140] [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).
93[R142] [(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 94[R143] [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 record95[R144] of any proceeding under this Act, and if he
considers that any order passed therein by the 96[R145] [Assessing] Officer is erroneous in so far95[R146] as it is prejudicial to the interests of the
revenue95[R147] , 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 assessment95[R148] and directing a fresh assessment.
97[R149] [Explanation.—For the removal of
doubts, it is hereby declared that, for the purposes of this sub-section,—
(a) an order passed 98[R150] [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 99[R151] [or
Deputy Commissioner] or the Income-tax Officer on the basis of the directions
issued by the 1[R152] [Joint]
Commissioner under section 144A;
(ii) an order made by the 1[R153] [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” 2[R154] [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 3[R155] [filed
on or before or after the 1st day of June, 1988], the powers of the
Commissioner under this sub-section shall extend 3[R156] [and
shall be deemed always to have extended] to such matters as had not been
considered and decided in such appeal.]
4[R157] [(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.
5[R158] 264. (1) In the
case of any order6[R159] other than an order6[R160] 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 cause7[R161] 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 8[R162] [Deputy
Commissioner (Appeals)] 9[R163] [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 10[R164] [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 11[R165] [Deputy
Commissioner (Appeals)]; or
(c) where the order12[R166]
has been made the subject of an appeal 13[R167] [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 14[R168] [five hundred] rupees.
15[R169] [(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 16[R170] [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.
17[R171] [Amendment of assessment on
appeal.
267. Where
as a result of an appeal under section 246 18[R172] [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 19[R173] [* * *] 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 20[R174] [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 ;
21[R175] [(ii) in relation to the Union territory of
Delhi, the High Court of Delhi ;
(iv) in relation to the Union territory of the
Andaman and Nicobar Islands, the High Court at Calcutta ;
(v) in relation to the Union territory of 24[R178] [Lakshadweep],
the High Court of Kerala ;
25[R179] [(va) in relation to the Union territory of
Chandigarh, the High Court of Punjab and Haryana ;]
26[R180] [(vi) in relation to the Union territories of
Dadra and Nagar Haveli and 27[R181] [*
* *] Daman and Diu, the High Court at Bombay ; and
(vii) in relation to the Union territory of
Pondicherry, the High Court at Madras.]
[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)
246. 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.’
[R6]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.
[R7]Inserted by the Finance Act, 1992, w.e.f. 1-4-1993.
[R8]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.
[R11] Substituted for “section 271E or section 272A” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R12]Words “sub-section (1)
of section 271,” omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f.
1-4-1989.
[R15]Substituted for “an
order specified in sub-section (1) where such order” by the Finance Act, 1994,
w.e.f. 1-6-1994.
[R21]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;”
[R22] 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.
[R26] Notified “appointed day” is 1-10-1998
[R27] 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.”
[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.
[R34]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.
[R38]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.
[R39]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R40] Substituted
for “this sub-section” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f.
1-4-1989.
[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.
[R46]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] 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]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.
[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.
[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.
[R60]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.
[R62]. Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R63]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.
[R68]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;”
[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.
[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.
[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.
[R75]Substituted by the Finance Act, 1981, w.e.f. 1-4-1981.
[R79]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.”
[R83]Substituted for “A Vice-President” by the Finance Act, 1984, w.e.f. 1-4-1984.
[R84]See rule 47(1) and Form Nos. 36 and 36A for form of appeal to Appellate Tribunal and form of cross-objections.
[R86]Substituted for
“Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1988.
[R89] “sub-section (2) of section 131,” omitted by
the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R91] “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.
[R93] 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.
[R94] Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R97]“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
[R99] Substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R100] Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R103] Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R106] Substituted
for “Appellate Assistant Commissioner” 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.
[R111]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]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] Inserted by the Finance Act, 2000, w.e.f. 1-6-2000.
[R123]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R124] Words “Chief Commissioner or” were omitted by the Finance (No. 2) Act, 1991, w.e.f. 27-9-1991.
[R128]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.
[R129]See Standing Order notified vide Notification F. No. 63-AD (AT)/97, dated
16-9-1997. See also Notification No. F. 63-AD(AT)/2001, dated 20-8-2001.
For details, see Income-tax Rules.
[R133]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.
[R134] For the meaning of the terms/expressions “question”, “question of
law” and “question of law arising out of such order”,
[R135] Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R137]Inserted by the Finance
(No. 2) Act, 1998, w.e.f. Inserted by the Finance
(No. 2) Act, 1998, w.e.f. 1-10-1998.
[R138] Sub-heading
“CC” and sections 260A and 260B inserted by the Finance (No. 2) Act, 1998,
w.e.f. 1-10-1998.
[R139] Substituted
for “An appeal under this sub-section shall be—” by the Finance Act, 1999,
w.e.f. 1-6-1999.
[R141]. 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;”
[R142] Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R144]For the
meaning of the terms and expressions “record”, “insofar as”, “prejudicial to
the interests of the revenue” and “assessment”,
[R146]For the meaning of the terms and expressions “record”, “insofar as”, “prejudicial to the interests of the revenue” and “assessment”,
[R147]For the meaning of the terms and expressions “record”, “insofar as”, “prejudicial to the interests of the revenue” and “assessment”,
[R148]For the
meaning of the terms and expressions “record”, “insofar as”, “prejudicial to
the interests of the revenue” and “assessment”,
[R149]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.”
[R152]Substituted for “Deputy” by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R155]Inserted by the Finance Act, 1989, w.r.e.f. 1-6-1988.
[R157]Substituted for the following by the Taxation
Laws (Amendment) Act, 1984, w.e.f. 1-10-1984:
“(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.”
[R162]Substituted for “Appellate
Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R164]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R165] 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, 1998, w.e.f. 1-10-1998.
[R170]Substituted
for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1988.
[R171]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.”
[R173]Words “Deputy Commissioner (Appeals) or the” omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R174]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.
[R175]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.
[R176]Omitted by the State of
Himachal Pradesh (Adaptation of Laws on Union Subjects) Order, 1973, with
retrospective effect from 25-1-1971.
[R177]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) ;”
[R178]Substituted for “the
Laccadive, Minicoy and Amindivi Islands” by the Laccadive, Minicoy and Amindivi
Islands (Alteration of Name) Adaptation of Laws Order, 1974, with retrospective
effect from 1-11-1973.
[R179] Inserted by the Punjab Reorganisation and Delhi High Court
(Adaptation of Laws on Union Subjects) Order, 1968, with retrospective effect
from 1-11-1966.
[R180]Inserted by the Taxation
Laws (Extension to Union Territories) Regulation, 1963, w.e.f. 1-4-1963.