CHAPTER XX
APPEALS AND REVISION
1[J1] [A.—Appeals 2[J2] [* * *] to the Deputy Commissioner (Appeals) and
Commissioner (Appeals)]
(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 4[J4] [Joint] Commissioner)
may appeal to the Deputy Commissioner (Appeals) 5[J5] [before the 1st day of June, 2000] against such order—
(a) An order against the assessee,
where the assessee denies his liability to be assessed
under this Act 6[J6] [, 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 7[J7] [* * *] 8[J8] [in respect of any assessment for the assessment year
commencing on or before the 1st day of April, 1992];
(h)
An order canceling the registration of a firm under sub-section (1) or under
sub-section (2) of section 186 9[J9] [* * *] 10[J10] [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, 11[J11] [* * *] 12[J12] [section 272A,
section 272AA or section 272BB];
(iii) 13[J13] [* * *] 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.
14[J14] [(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) 15[J15] [before the 1st
day of June, 2000] against such order—
(a) 16[J16] [an intimation or
order specified in sub-section (1) where such intimation is sent or such order]
is made by the 17[J17] [Joint]
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)
18[J18] [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 19[J19] [Joint]
Commissioner under section 144A;
(d) An order made by the
20[J20] [Joint]
Commissioner under section 154;
21[J21] [(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 22[J22] [or section
271BB];
23[J23] [(ee) An order
made by a 24[J24] [Joint]
Commissioner imposing a penalty under section 271C, section 271D or section
271E;]
(f) An order made by a 25[J25] [Joint]
Commissioner or a 26[J26] [Joint] Director
imposing a penalty under section 272A;
27[J27] [(ff) An order made by a 28[J28] [Joint]
Commissioner imposing a penalty under section 272AA;]
29[J29] [(g) An order imposing a
penalty under Chapter XXI by the Income-tax Officer or the Assistant
Commissioner 30[J30] [or Deputy
Commissioner], where such penalty has been imposed with the previous approval
of the 31[J31] [Joint]
Commissioner under sub-section (2) of section 274;]
(h) An order made by an
Assessing Officer (other than 32[J32] [Joint]
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 re-heard.
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.]
1[J33] [246A. Appealable
orders before Commissioner (Appeals):-
(1) Any assessee
aggrieved by any of the following orders (whether made before or after the
appointed day2[J34] ) may appeal to
the Commissioner (Appeals) against—
(a) 3[J35] [an order passed
by a Joint Commissioner under clause (ii) of sub-section (3) of section
115VP or] an order against the assessee where the assessee denies his liability to be assessed under this Act
or an intimation under sub-section (1) or sub-section (1B) of section 143,
where the assessee objects to the making of
adjustments, or any order of assessment under sub-section (3) of section 143 or
section 144, to the income assessed, or to the amount of tax determined, or to
the amount of loss computed, or to the status under which he is assessed;
4[J36] [(aa) An order of assessment under sub-section (3) of
section 115WE or section 115WF, where the assessee,
being an employer objects to the value of fringe benefits assessed;
(ab) An order
of assessment or reassessment under section 115WG;]
(b) An order of
assessment, re-assessment or re-computation under section 147 or section 150;
5[J37] [(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 canceling
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;
6[J38] [(ha) An order made
under section 201;]
7[J39] [(hb) An order made under sub-section (6A) of section 206C;]
(i) An
order made under section 237;
(j) An order imposing a
penalty under—
(A) Section 221; or
(B) Section 271, section 271A, 8[J40] [section 271AAA,]
section 271F 9[J41] [, 271FB],
section 272AA or section 272BB;
(C) Section 272, section 272B or section 273, as
they stood immediately before the 1st day of April, 1989, in respect of an
assessment for the assessment year commencing on the 1st day of April, 1988, or
any earlier assessment years;
10[J42] [(ja) An order of imposing or enhancing penalty under sub-section
(1A) of section 275;]
(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
penalty under section 271B or section 271BB;
(n) An order made by a
Deputy Commissioner imposing a penalty under section 271C, 11[J43] [section 271CA,]
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.
12[J44] [(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.]
13[J45] [(1B) Every
appeal filed by an assessee in default against an
order under sub-section (6A) of section 206C on or after the 1st day of April,
2007 but before the 1st day of June, 2007 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 notification in the
Official Gazette.]
1[J46] [247. Appeal by partner:-
Omitted
by the Finance Act, 1992, w.e.f. 1-4-1993.]
1[J47] [248. Appeal by person denying liability to
deduct tax in certain cases:-
Where under an agreement or
other arrangement, the tax deductible on any income, other than interest, under
section 195 is to be borne by the person by whom the income is payable, and
such person having paid such tax to the credit of the Central Government,
claims that no tax was required to be deducted on such income, he may appeal to
the Commissioner (Appeals) for a declaration that no tax was deductible on such
income.]
249. Form of appeal and limitation1[J48] :-
(1) Every appeal under this Chapter shall be
in the prescribed form and shall be verified in the prescribed manner 2[J49] [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;]
3[J50] [(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,—
4[J51] [(a) where the appeal is under section 248,
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:
5[J52] [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]
6[J53] (c) in any other case, the date on which
intimation of the order sought to be appealed against is served.
7[J54] [(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 8[J55] [* * *] 9[J56] [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.
10[J57] [(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, 11[J58] [in a case
falling under clause (b) and] on an application made by the appellant in
this behalf, the 12[J59] [* * *] 13[J60] [Commissioner
(Appeals)] may, for any good and sufficient reason to be recorded in writing,
exempt him from the operation of the provisions of 14[J61] [that clause].]
DEPARTMENTAL
VIEW
1. For the purposes of section 249(2)(c),
the intimation under section 143(1) should be deemed to have been served on the
assessee (for this limited purpose) on the date
following the expiry of the period of three months mentioned in the proviso
under section 154(2)(b) and hence the limitation period of thirty days will
start from that date. [Circular No. 668, dated 20th October, 1993]
250. Procedure in appeal1[J62] :-
(1) The 2[J63] [* * *] 3[J64] [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 4[J65] [Assessing]
Officer against whose order the appeal is pref Inserted by the Finance (No. 2) Act,
1977, w.e.f. 10-7-1978.erred.
(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 5[J66] [Assessing]
Officer, either in person or by a
representative.
(3) The 6[J67] [* * *] 7[J68] [Commissioner
(Appeals)] shall have the power to adjourn the hearing of the appeal from time
to time.
(4) The 8[J69] [* * *] 9[J70] [Commissioner
(Appeals)] may, before disposing of any appeal, make such further inquiry as he
thinks fit, or may direct the 10[J71] [Assessing]
Officer to make further inquiry and report the result of the same to the 11[J72] [* * *] 12[J73] [Commissioner
(Appeals)].
(5) The 13[J74] [* * *] 14[J75] [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 15[J76] [* * *] 16[J77] [Commissioner
(Appeals)] is satisfied that the omission of that ground from the form of
appeal was not willful or unreasonable.
(6) The order of the 17[J78] [* * *] 18[J79] [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.
19[J80] [(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 20[J81] [* * *] 21[J82] [Commissioner
(Appeals)] shall communicate the order passed by him to the assessee
and to the 22[J83] [Chief
Commissioner or Commissioner].
DEPARTMENTAL
VIEW
1. Where the assessee does not
insist on a personal hearing the appeal may be decided on the basis of written
submission made by him. [Letter No. 277/7/84 of November, 1985]
2. Departmental appellate authorities should pass appellate
orders in all cases within 20 days after the final hearing and in all duly
heard cases before relinquishing charge on transfer or proceeding on leave. [Instruction
No. 1489, dated 3rd November, 1982]
251. Powers of the 1[J84] [* * *] 2[J85] [Commissioner (Appeals)]:-
(1) In disposing of an appeal, the 3[J86] [* * *] 4[J87] [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; 5[J88] [* * *]
6[J89] [(aa) In an
appeal against the order of assessment in respect of which the proceeding
before the Settlement Commission abates under section 245HA, he may, after
taking into consideration all the material and other information produced by
the assessee before, or the results of the inquiry
held or evidence recorded by, the Settlement Commission, in the course of the
proceeding before it and such other material as may be brought on his record,
confirm, reduce, enhance or annul the 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 7[J90] [* * *] 8[J91] [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 9[J92] [* * *] 10[J93] [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 11[J94] [* * *] 12[J95] [Commissioner
(Appeals)] by the appellant.
B.—Appeals
to the Appellate Tribunal
(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.
1[J96] [(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 2[J97] [Indian] Legal
Service and has held a post in 3[J98] [Grade 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 4[J99] [Additional]
Commissioner of Income-tax or any equivalent or higher post for at least three
years.]
5[J100] [(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.]
6[J101] [(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.
7[J102] [(4A) The Central
Government may appoint one of the Vice-Presidents of the Appellate Tribunal to
be the Senior Vice-President thereof.]
8[J103] (5) 9[J104] [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.]
1[R105] 253. Appeals
to the Appellate Tribunal2[R106] :-
(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 3[R107] [Deputy Commissioner (Appeals)] 4[R108] [before the 1st day of October, 1998] 5[R109] [or, as the case may be, a Commissioner (Appeals)] under 6[R110] [* * *] 7[R111] [section 154], 8[R112] [* * *] section 250, 9[R113] [section 271, section 271A or section 272A]; or
10[R114] [(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 under 11[R115] [section 12AA 12[R116] [or under clause (vi) of sub-section (5) of section 80G] or
under] section 263 13[R117] [or under section 271] 14[R118] [or under section 272A] 15[R119] [* * *] or an order passed by him under section 154
amending his order under section 263] 16[R120] [or an order passed by a Chief Commissioner or a Director
General or a Director under section 272A;]
17[R121] [(d) an order passed by an Assessing Officer under
sub-section (1) of section 115VZC.]
(2) The Commissioner may, if he objects to
any order passed by a 18[R122] [Deputy Commissioner (Appeals)] 19[R123] [before the 1st day of October, 1998] 20[R124] [or, as the case may be, a Commissioner (Appeals)] under 21[R125] [section 154 or] section 250, direct the 22[R126] [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:
23[R127] [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 24[R128] [Assessing] Officer or the assessee,
as the case may be, on receipt of notice that an appeal against the order of
the 25[R129] [Deputy Commissioner (Appeals)] 26[R130] [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 27[R131] [Deputy Commissioner (Appeals)] 28[R132] [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.
29[R133] [(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 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,
30[R134] [(d) where the subject matter of an appeal relates
to any matter, other than those specified in clauses (a), (b) and
(c), five hundred rupees:]
Provided
that no such fee shall be payable in the
case of an appeal referred to in sub-section (2) or a memorandum of
cross-objections referred to in sub-section (4).
(7) An application for stay of demand shall
be accompanied by a fee of five hundred rupees.]
254. Orders of Appellate Tribunal:-
(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 2[R136] [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:
3[R137] [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.]
4[R138] [(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) 5[R139] [or sub-section (2)] of section 253:
6[R140] [Provided that the Appellate Tribunal may, after
considering the merits of the application made by the assessee,
pass an order of stay in any proceedings relating to an appeal filed under
sub-section (1) of section 253, for a period not exceeding one hundred and
eighty days from the date of such order and the Appellate Tribunal shall
dispose of the appeal within the said period of stay specified in that order:
Provided further that where such appeal is not so disposed of
within the said period of stay as specified in the order of stay, the Appellate
Tribunal may, on an application made in this behalf by the assessee
and on being satisfied that the delay in disposing of the appeal is not
attributable to the assessee, extend the period of
stay, or pass an order of stay for a further period or periods as it thinks
fit; so, however, that the aggregate of the period originally allowed and the
period or periods so extended or allowed shall not, in any case, exceed three
hundred and sixty-five days and the Appellate Tribunal shall dispose of the
appeal within the period or periods of stay so extended or allowed:
Provided also that if such appeal is not so disposed of within the
period allowed under the first proviso or the period or periods extended or
allowed under the second proviso, the order of stay shall stand vacated after
the expiry of such period or periods.]
The following third proviso
is being substituted for the above italicised third
proviso by the Finance Act, 2008, w.e.f.
1-10-2008:
"Provided also that if such appeal is not so disposed of within the
period allowed under the first proviso or the period or periods extended or
allowed under the second proviso, which shall not, in any case, exceed three
hundred and sixty-five days, the order of stay shall stand vacated after the
expiry of such period or periods, even if the delay in disposing of the appeal
is not attributable to the assessee."
(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 7[R141] [* * *] Commissioner].
(4) Save as provided in 8[R142] [the National Tax Tribunal Act, 2005], orders passed by the
Appellate Tribunal on appeal shall be final.
255. Procedure of Appellate Tribunal1[R143] :-
(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 2[R144] [Assessing] Officer in the case does not exceed 3[R145] [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.
4[R146] (5) Subject to
the provisions of this Act, the Appellate Tribunal shall have powers 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).5[R147]
SUPREME
COURT RULINGS
1. Under sub-sections (1) and (5) of section 255, the
President of the ITAT has the requisite power of posting and transfer of its
Members. The long standing practice should be allowed to prevail. The President
cannot be said to have an unguided, unfettered and unlimited jurisdiction. The
Central Government cannot transfer such power to itself. The Supreme Court
issued guidelines for the posting and transfer of Members of ITAT. [Ajay
Gandhi v Singh (B) (2004) 265 ITR 451 (SC)]
1[R149] [256.
Statement of case to the High Court:-
Omitted by the National Tax Tribunal Act, 2005, w.e.f. 28-12-2005.]
257. Statement of cases to Supreme Court
in certain cases1[R150] :-
If, on an application made 2[R151] [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.
1[R152] [258.
Power of High Court or Supreme Court to require statement to be amended:-
Omitted by the National Tax Tribunal Act, 2005, w.e.f. 28-12-2005.]
1[R153] [259. Case
before High Court to be heard by not less than two judges:-
Omitted by the National Tax Tribunal Act, 2005, w.e.f. 28-12-2005.]
1[R154] [260.
Effect to the decisions of Supreme Court and of the National Tax Tribunal:-
(1) The Supreme Court upon hearing any
reference made to it by the Appellate Tribunal under section 257 shall decide
the question 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 conforming to such judgment.
(2) Where the National Tax Tribunal delivers
a judgment in an appeal filed before it or in any matter transferred to it
under the National Tax Tribunal Act, 2005, effect shall be given to the order
or that Tribunal by the assessing officer on the basis of certified copy of the
judgment.
(3) The cost of any reference to the Supreme
Court which shall not include the fee for making the reference shall be at the
discretion of the Court.]
1[R155] [CC.—Appeals to High Court
(1) An appeal shall lie to the High Court
from every order passed in appeal by the Appellate Tribunal 2[R156] [before the date of establishment of the National Tax
Tribunal], if the High Court is satisfied that the case involves a substantial
question of la
(2) 3[R157] [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
4[R158] [received by the assessee or the
Chief Commissioner or Commissioner];
[(b) Omitted by the Finance Act, 1999, w.e.f.
1-6-1999.]
(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).
5[R159] [(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.]
SUPREME
COURT RULINGS
1. The word "substantial" as qualifying
"question of law", means having substance, essential, real, of sound
worth, important or considerable. The substantial question of law, on which a
second appeal shall be heard, need not necessarily be a substantial question of
law of general importance. [Santosh Hazari v Purushottam
Tiwari (2001) 251 ITR 84 (SC)]
2. A point of law which admits of no two opinions may be a
proposition of law but cannot be a substantial question of law. To be
"substantial", a question of law must be debatable, not previously
settled by law of the land or a binding precedent, and must have a material
bearing on the decision of the case, if answered either way, in so far as the
rights of the parties before it are concerned. [Santosh
Hazari v Purushottam
Tiwari (2001) 251 ITR 84 (SC)]
3. Where for an earlier year the High Court had called for a
statement of case under section 256(2), on an identical issue, but for a later
year the High Court dismissed the appeal of the Department under section 260A
based on the same point of law, on the ground that no substantial question of
law arose, the Supreme Court, on appeal, restored the appeal under section 260A
to the file of the High Court for disposal on the merits. [Joint CIT v Reliable
Carriers (P) Ltd (2001) 249 ITR 668 (SC)]
4. The question whether liquidated damages received by the assessee on account of breach of contract are a part of the
profits received from its industrial undertaking and the assessee
is entitled to deduction in relation thereto under sections 80HH and 80-IA is a
substantial question of law. [CIT v Alpine Solvex
Ltd. (2003) 259 ITR 719 (SC)]
5. The conditions mentioned in section 260A must be strictly
fulfilled before an appeal can be maintained under that section. Such an appeal
cannot be decided on merely equitable grounds. [Janardhana
Rao (M) v Joint CIT (2005) 273 ITR
50 (SC)]
6. It is essential for the High Court to first formulate the
question of law and thereafter proceed with the matter. It is against the
scheme of the Act to formulate the question subsequently after conclusion of
the arguments for the purpose of adjudication. [Janardhana
Rao (M) v Joint CIT (2005) 273 ITR
50 (SC)]
7. The tests for determining whether a substantial question of
law is involved in an appeal are: (i) whether
directly or indirectly it affects substantial rights of the parties; or (ii)
the question is of general public importance; or (iii) whether it is an
open question in the same that the issue is not settled by a pronouncement of
the Supreme Court or the Privy Council or by the Federal Court; or (iv)
the issue is not free from difficulty; or (v) it calls for a discussion
for alternative view. [Janardhana Rao (M) v Joint CIT (2005) 273 ITR 50
(SC)]
8. In exercise of the powers under section 260A, the findings
of fact of the Appellate Tribunal cannot be disturbed: there is no scope for
interference by the High Court with a finding recorded, when such finding can
be treated to be a finding of fact. [Janardhana
Rao (M) v Joint CIT (2005) 273 ITR
50 (SC)]
9. Though in an order of affirmation in an appeal under
section 260A, repetition of the reasons elaborately may not be necessary, the
arguments advanced/points urged have to be dealt with. Reasons for affirmation
have to be indicated, though in appropriate cases they may be brief. [Mangalore
Ganesh Beedi Works v CIT
(2005) 273 ITR 56 (SC)]
260B. Case before High Court to be heard
by not less than two Judges:-
(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
261. Appeal to Supreme Court:-
An appeal shall lie to the Supreme Court from any judgment of the High Court delivered 1[R160] [before the establishment of the National Tax Tribunal] on a reference made under section 256 2[R161] [against an order made under section 254 before the 1st day of October, 1998 or an appeal made to High Court in respect of an order passed under section 254 on or after that date] in any case which the High Court certifies to be a fit one for appeal to the Supreme Court.
262. Hearing before Supreme Court:-
(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
263. Revision of orders prejudicial to
revenue1[R162] :-
(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 2[R163] [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 canceling the assessment and directing a fresh
assessment.
3[R164] [Explanation.—for the removal of doubts, it
is hereby declared that, for the purposes of this sub-section,—
(a)
An order passed 4[R165] [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 5[R166] [or Deputy Commissioner] or the Income-tax Officer on the
basis of the directions issued by the 6[R167] [Joint] Commissioner under section 144A;
(ii) An order made by the 7[R168] [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" 8[R169] [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, 9[R170] [filed on or before or after the 1st day of June, 1988] the
powers of the Commissioner under this sub-section shall extend 10[R171] [and shall be deemed always to have extended] to such
matters as had not been considered and decided in such appeal.]
11[R172] [(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, 12[R173] [National Tax 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.
DEPARTMENTAL
VIEW/SUPREME COURT RULING
1. No proceedings under section 147 or under section 263
should be initiated for the assessment years prior to A.Y. 2002-03 in the case
of assessees earning income from manufacture of rubber and/or coffee, for determining
the income liable to income-tax, if the assessee had
already paid agricultural income-tax on the whole of such income. [Circular
No. 5/2003, dated 22-5-2003]
2. The Commissioner has power to revise an order passed by the
Income-tax Officer including an order passed under directions given by the
Inspecting Assistant Commissioner. [T.N. Civil Supplies Corpn. Ltd. v CIT (2003) 260 ITR
82 (SC)]
3. If, at the time when the power of revision is exercised by
the Commissioner the decision of the jurisdictional High Court, on which the
assessment order is based, has not been set aside by the Supreme Court or at
least has not been appealed from, it is not open to the Commissioner to proceed
on the basis that the decision of the High Court is erroneous. [CIT v G.M.
Mittal Stainless Steel P. Ltd. (2003) 263 ITR 244
(SC)]
4. Merely because a proceeding for rectification was initiated
subsequently, it could not be said that the revision jurisdiction could not
have been invoked. If rectification proceedings are initiated by the Assessing
Officer, the contesting parties ought to bring the same to the notice of the
Commissioner so as to enable him to take into consideration the subsequent
events also. [CIT v Ralson
Industries Ltd (2007) 288 ITR 322 (SC)]
5. Once an order of assessment is reopened, the previous
under-assessment will be held to be set aside and the whole proceedings will
start afresh, but that would not mean that even when the subject-matter of
reassessment is distinct and different, the entire proceeding will be deemed to
have reopened. In terms of Explanation (c) to section 263(1), the
doctrine of merger applies only in respect of such items which were the
subject-matter of appeal and not in respect of those which were not. [CIT v
Alagendran Finance (2007) 293 ITR 1
(SC)]
E.—Revision
by the Commissioner
263.
Revision of orders prejudicial to revenue1[R174] :-
(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 2[R175] [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 canceling the assessment and directing a fresh
assessment.
3[R176] [Explanation.—for the removal of doubts, it
is hereby declared that, for the purposes of this sub-section,—
(a)
An order passed 4[R177] [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 5[R178] [or Deputy Commissioner] or the Income-tax Officer on the
basis of the directions issued by the 6[R179] [Joint] Commissioner under section 144A;
(ii) An order made by the 7[R180] [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" 8[R181] [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, 9[R182] [filed on or before or after the 1st day of June, 1988] the
powers of the Commissioner under this sub-section shall extend 10[R183] [and shall be deemed always to have extended] to such
matters as had not been considered and decided in such appeal.]
11[R184] [(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, 12[R185] [National Tax 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.
DEPARTMENTAL
VIEW/SUPREME COURT RULING
1. No proceedings under section 147 or under section 263
should be initiated for the assessment years prior to A.Y. 2002-03 in the case
of assessees earning income from manufacture of rubber and/or coffee, for
determining the income liable to income-tax, if the assessee
had already paid agricultural income-tax on the whole of such income. [Circular
No. 5/2003, dated 22-5-2003]
2. The Commissioner has power to revise an order passed by the
Income-tax Officer including an order passed under directions given by the
Inspecting Assistant Commissioner. [T.N. Civil Supplies Corpn. Ltd. v CIT (2003) 260 ITR
82 (SC)]
3. If, at the time when the power of revision is exercised by
the Commissioner the decision of the jurisdictional High Court, on which the
assessment order is based, has not been set aside by the Supreme Court or at
least has not been appealed from, it is not open to the Commissioner to proceed
on the basis that the decision of the High Court is erroneous. [CIT v G.M.
Mittal Stainless Steel P. Ltd. (2003) 263 ITR 244
(SC)]
4. Merely because a proceeding for rectification was initiated
subsequently, it could not be said that the revision jurisdiction could not
have been invoked. If rectification proceedings are initiated by the Assessing
Officer, the contesting parties ought to bring the same to the notice of the
Commissioner so as to enable him to take into consideration the subsequent
events also. [CIT v Ralson
Industries Ltd (2007) 288 ITR 322 (SC)]
5. Once an order of assessment is reopened, the previous
under-assessment will be held to be set aside and the whole proceedings will
start afresh, but that would not mean that even when the subject-matter of reassessment
is distinct and different, the entire proceeding will be deemed to have
reopened. In terms of Explanation (c) to section 263(1), the
doctrine of merger applies only in respect of such items which were the
subject-matter of appeal and not in respect of those which were not. [CIT v
Alagendran Finance (2007) 293 ITR 1
(SC)]
264. Revision of other orders:-
(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 1[R186] [Deputy Commissioner (Appeals)] 2[R187] [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 3[R188] [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 4[R189] [Deputy Commissioner (Appeals)]; or
(c)
Where the order has been made the subject of an appeal5[R190] 6[R191] [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 7[R192] [five hundred rupees].
8[R193] [(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 9[R194] [Deputy Commissioner (Appeals)] shall be deemed to be an
authority subordinate to the Commissioner.
DEPARTMENTAL
VIEW
1. An order cannot be said to have been made subject of an
appeal if the appeal has been disposed of by the Commissioner (Appeals) or the
Appellate Tribunal without passing an order under section 251(1) or 254(1) on
merits. [Circular No. 367, dated 26th July, 1983]
F.—General
265. Tax to be paid notwithstanding reference, etc.:-
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.
266. Execution for costs awarded by Supreme Court:-
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.
1[R195] [267.
Amendment of assessment on appeal:-
Where as a result of an appeal under section 246 2[R196] [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 3[R197] [* * *] Commissioner (Appeals) or the Appellate Tribunal, as the case may be, shall pass an order authorizing 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.]
268. Exclusion of time taken for copy:-
In computing the period of
limitation prescribed for an appeal 1[R198] [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.
1[R199] [268A.
Filing of appeal or application for reference by income-tax authority:-
(1) The Board may, from time to time, issue
orders, instructions or directions to other income-tax authorities, fixing such
monetary limits as it may deem fit, for the purpose of regulating filing of appeal
or application for reference by any income-tax authority under the provisions
of this Chapter.
(2) Where, in pursuance of the orders,
instructions or directions issued under sub-section (1), an income-tax
authority has not filed any appeal or application for reference on any issue in
the case of an assessee for any assessment year, it
shall not preclude such authority from filing an appeal or application for
reference on the same issue in the case of—
(a)
The same assessee
for any other assessment year; or
(b)
Any other assessee
for the same or any other assessment year.
(3) Notwithstanding that no appeal or
application for reference has been filed by an income-tax authority pursuant to
the orders or instructions or directions issued under sub-section (1), it shall
not be lawful for an assessee, being a party in any
appeal or reference, to contend that the income-tax authority has acquiesced in
the decision on the disputed issue by not filing an appeal or application for
reference in any case.
(4) The Appellate Tribunal or Court, hearing
such appeal or reference, shall have regard to the orders, instructions or
directions issued under sub-section (1) and the circumstances under which such
appeal or application for reference was filed or not filed in respect of any
case.
(5) Every order, instruction or direction
which has been issued by the Board fixing monetary limits for filing an appeal
or application for reference shall be deemed to have been issued under
sub-section (1) and the provisions of sub-sections (2), (3) and (4) shall apply
accordingly.]
269. Definition of "High Court":-
In this Chapter,—
"High Court"
means,—
(i) In
relation to any State, the High Court for that State;
1[R200] [(ii) In
relation to the Union territory of Delhi, the High Court of Delhi;
[(iii) Omitted by the Finance Act,
1994, w.e.f. 1-4-1995. It was substituted by
the North-Eastern Areas (Reorganisation) (Adaptation
of Laws on Union Subjects) Order, 1974, w.r.e.f.
21-1-1972.]
(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 3[R202] [Lakshadweep], the High Court of
Kerala;
4[R203] [(va) In relation to the Union territory of Chandigarh, the High Court of Punjab and Haryana;]
5[R204] [(vi) In relation to the Union territories of Dadra and Nagar Haveli and 6[R205] [* * *] Daman and Diu, the High
Court at Bombay; and
(vii)
In relation to the
Union territory of Pondicherry, the High Court at
Madras.]
[J1]Substituted for "A.—Appeals to the Appellate Assistant Commissioner and Commissioner (Appeals)" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Earlier, it was amended by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J2]The words "or applications" omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[J3]Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Prior to the substitution, section 246 was 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; Finance Act, 1984, w.e.f. 1-4-1985; Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984; Finance Act, 1987, w.e.f. 1-4-1988 and Finance Act, 1988, w.e.f. 1-4-1988 w.r.e.f. 1-6-1987.
[J4]Substituted for "Deputy" by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[J5]Inserted by the Finance Act, 2000, w.e.f. 1-6-2000.
[J6]Inserted by the Finance Act, 1994, w.e.f. 1-6-1994.
[J7]The 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.
[J8]Inserted by the Finance Act, 1992, w.e.f. 1-4-1993.
[J9]The 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.
[J10]Inserted by the Finance Act, 1992, w.e.f. 1-4-1993.
[J11]The words "section 271C, section 271D, section 271E," omitted by the Finance Act, 1990, w.e.f. 1-4-1990.
[J12]Substituted for "section 271E or section 272A" by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[J13]The words "sub-section (1) of section 271" omitted, ibid.
[J14]Inserted by the Finance Act, 2000, w.e.f. 1-6-2000.
[J15]Ibid.
[J16]Substituted for "an order specified in sub-section (1) where such order" by the Finance Act, 1994, w.e.f. 1-6-1994.
[J17]Substituted for "Deputy" by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[J18]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[J19]Substituted for "Deputy" by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[J20]Ibid.
[J21]Inserted by the Income-tax (Amendment) Act, 1997, w.e.f. 1-1-1997.
[J22]Inserted by the Finance Act, 1990, w.e.f. 1-4-1990.
[J23]Ibid.
[J24]Substituted for "Deputy" by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[J25]Ibid.
[J26]Ibid.
[J27]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[J28]Substituted for "Deputy" by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[J29]Substituted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[J30]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[J31]Substituted for "Deputy" by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[J32]Ibid.
[J33]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[J34]1-10-1998 has been notified to be the appointed day: Notification No. 10691, dated 14-9-1998.
[J35]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004.
[J36]Inserted by the Finance Act, 2005, w.e.f. 1-4-2006.
[J37]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003.
[J38]Inserted by the Finance Act, 2000, w.e.f. 1-6-2000.
[J39]Inserted by the Finance Act, 2007, w.e.f. 1-6-2007.
[J40]Inserted by the Finance Act, 2007, w.e.f. 1-6-2007.
[J41]Inserted by the Finance Act, 2005, w.e.f. 1-4-2006.
[J42]Inserted by the Taxation Laws (Amendment) Act, 2006, w.e.f. 13-7-2006.
[J43]Inserted by the Finance Act, 2006, w.e.f. 1-4-2007.
[J44]Inserted by the Finance Act, 2000, w.e.f. 1-6-2000.
[J45]Inserted by the Finance Act, 2007, w.e.f. 1-6-2007.
[J46]Prior to the omission, section 247 was
amended by the Finance (No. 2) Act, 1977, w.e.f.
10-7-1978 and the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
Earlier, it was omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989 but was reintroduced by the Direct Tax Laws (Amendment) Act, 1989, with effect from the same date.
[J47]Substituted by the Finance Act, 2007, w.e.f. 1-6-2007. Prior to the substitution, section 248
read as under:
"248.
Appeal by person denying liability to deduct tax.—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 1[* * *] 2[Commissioner
(Appeals)] to be declared not liable to make such deduction.
1 The words
"Deputy Commissioner (Appeals) or, as case may be, the" omitted by
the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. The
words "Deputy Commissioner (Appeals)" substituted for "Appellate
Assistant Commissioner by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. The words "or, as the case may be,
the Commissioner (Appeals)" were inserted by the Finance (No. 2) Act,
1977, w.e.f. 10-7-1978.
2 Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J48]See rules 45 and 46 and Form No. 35
[J49]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[J50]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[J51]Substituted by the Finance Act, 2007, w.e.f. 1-6-2007. Prior to the substitution, clause (a)
read as under:
"(a) where the appeal relates to any tax deducted under sub-section (1) of section 195, the date of payment of the tax, or"
[J52]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[J53]See Circular No. 668, dated 20-10-1993.
[J54]Inserted by the Finance Act, 2000, w.e.f. 1-6-2000.
[J55]The 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. The words "Deputy Commissioner (Appeals)" were substituted for "Appellate Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. The words "or, as the case may be, the Commissioner Appeals" were inserted by Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J56]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J57]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[J58]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[J59]The 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. The words "Deputy Commissioner
(Appeals)" were substituted for "Appellate Assistant
Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
The words "or, as the case may be, the Commissioner (Appeals)" were inserted by Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J60]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J61]Substituted for "this sub-section" by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[J62]See Letters F. No. 277/7/84-ITJ of November, 1985 reproduced in PAC's 38th Report (1985-86), 8th Lok Sabha, pp. 56-58; Instruction Nos. 1488, dated 3-11-1982 and 1489, dated 3-11-1982; Ministry of Law, Justice & Company Affairs U. No. 21977/77, dated 27-4-1977 to the Ministry of Finance.
[J63]The words "Deputy Commissioner (Appeals) or, as case may be, the" omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. The words "Deputy Commissioner (Appeals)" substituted for "Appellate Assistant Commissioner by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. The words "or, as the case may be, the Commissioner (Appeals)" were inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J64]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J65]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J66]Ibid.
[J67]The words "Deputy Commissioner (Appeals) or, as case may be, the" omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. The words "Deputy Commissioner (Appeals)" substituted for "Appellate Assistant Commissioner by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. The words "or, as the case may be, the Commissioner (Appeals)" were inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J68]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J69]The words "Deputy Commissioner (Appeals) or, as case may be, the" omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. The words "Deputy Commissioner (Appeals)" substituted for "Appellate Assistant Commissioner by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. The words "or, as the case may be, the Commissioner (Appeals)" were inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J70]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J71]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J72]The words "Deputy Commissioner
(Appeals) or, as case may be, the" omitted by the Finance (No. 2) Act,
1998, w.e.f. 1-10-1998. The words "Deputy
Commissioner (Appeals)" substituted for "Appellate Assistant
Commissioner by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988. The words "or, as the case may be, the Commissioner
(Appeals)" were inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J73]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J74]The words "Deputy Commissioner (Appeals) or, as case may be, the" omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. The words "Deputy Commissioner (Appeals)" substituted for "Appellate Assistant Commissioner by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. The words "or, as the case may be, the Commissioner (Appeals)" were inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J75]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J76]The words "Deputy Commissioner
(Appeals) or, as case may be, the" omitted by the Finance (No. 2) Act,
1998, w.e.f. 1-10-1998. The words "Deputy
Commissioner (Appeals)" substituted for "Appellate Assistant
Commissioner by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988. The words "or, as the case may be, the Commissioner
(Appeals)" were inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J77]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J78]The words "Deputy Commissioner (Appeals) or, as case may be, the" omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. The words "Deputy Commissioner (Appeals)" substituted for "Appellate Assistant Commissioner by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. The words "or, as the case may be, the Commissioner (Appeals)" were inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J79]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J80]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[J81]The words "Deputy Commissioner (Appeals) or, as case may be, the" omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. The words "Deputy Commissioner (Appeals)" substituted for "Appellate Assistant Commissioner by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. The words "or, as the case may be, the Commissioner (Appeals)" were inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J82]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J83]Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J84]The words "Deputy Commissioner (Appeals) or, as case may be, the" omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. The words "Deputy Commissioner (Appeals)" substituted for "Appellate Assistant Commissioner by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. The words "or, as the case may be, the Commissioner (Appeals)" were inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J85]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J86]The words "Deputy Commissioner (Appeals) or, as case may be, the" omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. The words "Deputy Commissioner (Appeals)" substituted for "Appellate Assistant Commissioner by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. The words "or, as the case may be, the Commissioner (Appeals)" were inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J87]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J88]The words "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;" omitted by the Finance Act, 2001, w.e.f. 1-6-2001. Earlier, these words were 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; Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[J89]Inserted by the Finance Act, 2008, w.e.f. 1-4-2008.
[J90]The words "Deputy Commissioner (Appeals) or, as case may be, the" omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. The words "Deputy Commissioner (Appeals)" substituted for "Appellate Assistant Commissioner by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. The words "or, as the case may be, the Commissioner (Appeals)" were inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J91]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J92]The words "Deputy Commissioner (Appeals) or, as case may be, the" omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. The words "Deputy Commissioner (Appeals)" substituted for "Appellate Assistant Commissioner by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. The words "or, as the case may be, the Commissioner (Appeals)" were inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J93]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J94]The words "Deputy Commissioner (Appeals) or, as case may be, the" omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. The words "Deputy Commissioner (Appeals)" substituted for "Appellate Assistant Commissioner by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. The words "or, as the case may be, the Commissioner (Appeals)" were inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J95]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J96]Substituted by the Finance Act, 1981, w.e.f. 1-4-1981.
[J97]Substituted for "Central" by the Finance (No. 2) Act, 1998, w.e.f. 1-8-1998.
[J98]Substituted for "Grade I", ibid.
[J99]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-8-1998.
[J100]Substituted by the Finance Act, 2002, w.e.f. 1-4-2002. Prior to the 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."
[J101]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[J102]Inserted by the Finance Act, 1984, w.e.f. 1-4-1984.
[J103]For notifications of functions, duties and powers delegated to the Vice-Presidents.
[J104]Substituted for "A Vice-President" by the Finance Act, 1984, w.e.f. 1-4-1984.
[R105]See the suggestions made by Registrar of Appellate Tribunal for guidance of assessees with regard to appeals, applications or cross objections.
[R106]See rule 47(1) and Form Nos. 36 and 36A.
[R107]Substituted for "Appellate Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R108]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R109]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R110]The words "sub-section (2) of section 131," omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R111]Inserted by the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964.
[R112]The words "section 246A," omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier, these words were inserted by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same date.
[R113]Substituted for "or section 271" by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[R114]Substituted by the Income-tax (Amendment)
Act, 1997, w.e.f. 1-1-1997. Prior to the
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; Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976 and Finance (No. 2) Act, 1977, w.e.f. 10-7-1978 and omitted by the Direct Tax Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.
[R115]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R116]Inserted by the Finance Act, 2007, w.e.f. 1-6-2007.
[R117]Inserted by the Finance Act, 2002, w.e.f. 1-6-2002.
[R118]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[R119]The words "or under section 285A" omitted by the Finance Act, 1988, w.e.f. 1-4-1988. Earlier, these words were inserted by the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964.
[R120]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R121]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004.
[R122]Substituted for "Appellate Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R123]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R124]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R125]Inserted by the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964.
[R126]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R128]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R129]Substituted for "Appellate Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R130]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R131]Substituted for "Appellate Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R132]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R133]Substituted for sub-section (6) by the
Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Prior to
the substitution, sub-section (6), as 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)."
Earlier, sub-section (6) was amended by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971; Finance Act, 1981, w.e.f. 1-6-1981 and Finance Act, 1992, w.e.f. 1-6-1992.
[R134]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R135]Omitted by the Taxation Laws (Amendment)
Act, 1972, w.e.f. 1-1-1973. It was inserted by the
Finance Act, 1964, w.e.f. 1-4-1964. Section 25(1) of
the 1972 Amendment Act made the following savings provision:
"25. 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."
[R136]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R137]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R138]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R139]Inserted by the Finance Act, 2000, w.e.f. 1-6-2000.
[R140]Substituted by the Finance Act, 2007, w.e.f. 1-6-2007. Prior to the substitution, the provisos,
as inserted by the Finance Act, 2001, w.e.f.
1-6-2001, read as under:
"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."
[R141]The words "Chief Commissioner or" omitted by the Finance (No. 2) Act, 1991, w.e.f. 27-9-1991, which were earlier inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R142]Substituted for "section 256 or section 260A" by the National Tax Tribunal Act, 2005, w.e.f. 28-12-2005. The italicised words were inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R143]See ITAT's Standing Order No. 1 of 1980, dated 29-2-1980, as amended by Order No. 1 of 1984, dated 4-1-1984 and Order, dated 10-12-1988.
[R144]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R145] Substituted for "one lakh rupees" by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier, "one lakh rupees" was substituted for "forty thousand rupees" by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989, which was substituted for "twenty-five thousand rupees" by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.
[R146]See UO F. No. 38-J5(AT)/71, dated 9-8-1971; Order No. 1 of 1973, dated 10-7-1973 and Notification No. F. 71-Ad (AT)/74, dated 5-5-1975.
[R147]Now the Code of Criminal Procedure, 1973 (2 of 1974).
[R148]Sub-heading "C.—Reference to High Court" omitted by the National Tax Tribunal Act, 2005, w.e.f. 28-12-2005.
[R149]Prior to the omission, section 256 read as under:
"256. Statement of case to the High Court1.—(1) The assessee or the
Commissioner may, within sixty days of the date upon which he is served with
notice of an order 2[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 3[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."
1 See rule 48 and Form No. 37.
2 Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
3 Substituted for "one hundred and twenty-five rupees" by the Finance Act, 1981, w.e.f. 1-6-1981, which was earlier substituted for "rupees one hundred" by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.
[R150]See Instruction No. 1408, dated 21-7-1981.
[R151]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R152]Prior to the omission, section 258 read as under:
"258. Power of High Court or Supreme Court to require statement to be amended.—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."
[R153]Prior to the omission, section 259 read as under:
"259. Case before High Court to be heard by not
less than two judges.—(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.
[R154]Substituted by National Tax Tribunal Act,
2005, w.e.f. 28-12-2005. Prior to the substitution,
section 260 read as under:
"260.
Decision of High Court or Supreme Court on the case stated.—(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.
1[(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.
1 Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R155]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R156]Inserted by the National Tax Tribunal Act, 2005, w.e.f. 28-12-2005.
[R157]Substituted for "An appeal under this sub-section shall be—" by the Finance Act, 1999, w.e.f. 1-6-1999.
[R158]Substituted for "communicated to the appellant" by the Finance Act, 1999, w.e.f. 1-6-1999.
[R160]Inserted by the National Tax Tribunal Act, 2005, w.e.f. 28-12-2005.
[R161]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R162]See Circular No. 402, dated 1-11-1984.
[R163]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R164].Substituted by the Finance Act, 1988, w.e.f. 1-6-1988. Prior to the substitution, the Explanation was inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984 and amended by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R165]Inserted by the Finance Act, 1989, w.r.e.f. 1-6-1988.
[R166]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R167]Substituted for "Deputy" by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R168]Substituted for "Deputy" by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R169]Substituted for "includes" by the Finance Act, 1989, w.r.e.f. 1-6-1988.
[R170]Inserted, ibid.
[R171]Inserted by the Finance Act, 1989, w.r.e.f. 1-6-1988.
[R172]Substituted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.
[R174]See Circular No. 402, dated 1-11-1984.
[R175]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R176]Substituted by the Finance Act, 1988, w.e.f. 1-6-1988. Prior to the substitution, the Explanation was inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984 and amended by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R177]Inserted by the Finance Act, 1989, w.r.e.f. 1-6-1988.
[R178]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R179]Substituted for "Deputy" by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R180]Substituted for "Deputy" by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R181]Substituted for "includes" by the Finance Act, 1989, w.r.e.f. 1-6-1988.
[R182]Inserted, ibid.
[R183]Inserted by the Finance Act, 1989, w.r.e.f. 1-6-1988.
[R184]Substituted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.
[R185]Inserted by the National Tax Tribunal Act, 2005, w.e.f. 28-12-2005.
[R186]Substituted for "Appellate Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R187]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R188]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R189]Substituted for "Appellate Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R190]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R191]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R192]Substituted for "twenty-five rupees" by the Finance Act, 2001, w.e.f. 1-6-2001.
[R193]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R195]Substituted by the Finance Act, 1992, w.e.f. 1-4-1993. Prior to the substitution, section 267 was
amended by the Finance (No. 2) Act, 1977, w.e.f.
10-7-1978 and Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
Earlier, it was substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989 but was restored to its original provision by the Direct Tax Laws (Amendment) Act, 1989, with effect from same date.
[R196]Inserted by the Finance Act, 2000, w.e.f. 1-6-2000.
[R197]The words "Deputy Commissioner (Appeals) or the" omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R198]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.
[R199]Inserted by the Finance Act, 2008, w.r.e.f. 1-4-1999.
[R200]Substituted by the Punjab Reorganisation and Delhi High Court (Adaptation of Laws on Union Subjects) Order, 1968, w.r.e.f. 1-11-1966.
[R201]Omitted by the State of Himachal Pradesh (Adaptation of Laws on Union Subjects) Order, 1973, w.r.e.f. 25-1-1971.
[R202]Substituted for "the Laccadive, Minicoy and Amindivi Islands" by the Laccadive, Minicoy and Amindivi Islands (Alteration of Name) Adaptation of Laws Order, 1974, w.r.e.f. 1-11-1973.
[R203]Inserted by the Punjab Reorganisation and Delhi High Court (Adaptation of Laws on Union Subjects) Order, 1968, w.r.e.f. 1-11-1966.
[R204]Inserted by the Taxation Laws (Extension to Union Territories) Regulation, 1963, w.e.f. 1-4-1963.
[R205]The word "Goa", omitted by the Finance Act, 1994, w.e.f. 1-4-1995.