Wirc-icai.org Wirc Referencer Income Tax Wealth%

8/3/2019 Wirc-icai.org Wirc Referencer Income Tax Wealth%

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APPEALS

Section Appealto Filing

Time

Limit Fee Form

No. Documents Remarks

246A CIT(A) 1) 30days fromthedate of receipt of notice of demand.Sec. 249(2) 2) CIT(A)has powertocondonedelayu/s 249(3) onshowingSufficientcause.

a) Courtfee stampof 50 paiseon FormNo. 35 andof 65 paiseon copy of Assessmentorder.

b) Appealfees:1. Rs.250.

a) Whereassessedtotalincome isRs. 1 lakhor less.

b) Whereappeals are

filed onissues suchas penaltyorder, TDSdefaults,non-filingof returns,etc. whichcannot belinked withtheassessed

income. 2. Rs. 500,whereassessedtotalincome ismore thanRs. 1 lakhbut notmore thanRs. 2 lakhs. 3. Rs.1,000,where

35 1. Form No.35-induplicate. 2. Orderappealedagainst- 2copies-certified. 3. Grounds of

Appeal andStatement of Facts (induplicate)

4. Notice of Demand(original) 5. In the caseof appealagainstpenalty

order-2copies of relevantorder. 6. Proof of payment of appeal filingfee.

7. Affidavitstatingreasons for

delay in filingappealbeyond 30days for latefiling.

1) Personauthorised to signreturn of Incomeu/s. 140, must signappeal form.

2) Appealableorders areassessmentOrders,

reassessmentorders, Penaltyorders and otherorders as listedunder the relevantsection. Appealdoes not lie againstthe order which isnot covered by246A.

3) Appeal do notlie u/s 246A, if the

additions/disallowanceson facts areadmitted by theassessee beforethe AO. (unless theappellant candemonstrate thatfacts relied uponwere untrue andcircumstances forplacing suchreliance) , as the

assessee cannot besaid to be ‘aggrieved’ by theasst. ordercontaining suchagreedadditions/disallowances.However, thewrongadmission/acquaintanceby Assessee onstatutoryprovisions, lawpoints are notbinding.

of 7Appeal & Revision

05/11/2011http://wirc-icai.org/wirc_referencer/Income%20Tax%20&%20Wealth%20Tax/Appea...



assessedtotalincome ismore thanRs. 2 lakhs.

4) The Assesseemust ensurepayment of tax dueas per income ‘returned’ by himu/s 249(4) if notpaid at the time of filing of return of income. 5) No power of CIT(A) to set aside theAssessmentOrder/penaltyorder of AO.

248 CIT(A) Same asabove

Filing Fee250/-

Form35

Same asabove to theextent

applicable.

1) Where under anagreement or otherarrangement, the

tax is deductible onany income [otherthan interest]under S.195 is tobe borne by theperson by whomthe income ispayable and suchperson having paidsuch tax claimsthat no tax wasrequired to bededucted on suchincome, he mayappeal to the CIT(A) for adeclaration that notax was deductibleon such income. 2) Where the tax isborne by thepayee, the payercannot file appealunder S.248 of the

Act. If the payeecontends for lowerrate of deductionor nil deduction, hehas to file thereturn of incomeand claim refundfrom the revenueauthorities.Alternatively, hemay invoke Writ jurisdiction of the

Competent HighCourt under Article226 of theConstitution owing





to absence of effeciousalternative remedy.

3) Tax has to bepaid before filingappeal u/s 248unlike S. 246A. 4) CIT(A) in appealu/s 248 holdingassessee not liableto deduct tax atsource u/s 195,assessee is entitledto refund of theamount depositedby way of TDS.[TELCO vs. DCIT(2004) 83 TTJ 458

(Mum.)] 5) Appeal to besigned by theperson responsiblefor payment of income from whichTDS is deductibleu/s 195.

253 ITAT 60 daysfrom thedate of

service of CIT(A)orderSec.253(3) S.253(5)empowersthe ITATtocondonethe delayonshowingsufficientgrounds.

Appealfees: a) Rs.500. 1) whereassessedtotalincome isRs.1 lakhor less.2) Whereappeals arefiled onissues suchas TDS

defaults,penalties,non-filingof returns,etc. whichcannot belinked withtheassessedincome.3) Anapplication

for stay of demand. b)

36 1. Form No.36 togetherwith Grounds

of appeal intriplicate.

2. Orderappealedagainst-2copies(includingone certifiedcopy) 3. Order of AO 2 copies. 4. Grounds of Appeal beforeCIT(A)-2copies. 5. Statementof facts filedbefore CIT(A)-2 copies. 6. In the caseof appeal

againstpenaltyorder-2copies of

1. Personauthorised to signreturn of income

u/s. 140, must signappeal form. 2. Orders of CIT(A)/CIT againstwhich appeal liesare listed under therelevant section. 3. If the assessedincome is a lossthen fees has to becalculated as if that

loss is income.





REVISION

Rs.1,500, if assessedincome isabove Rs.1lakh butnot morethan Rs. 2

lakhs. c) 1% of assessedincomesubject tomaximumof Rs.10,000whereassessedincome ismore than

Rs. 2 lakhs.

relevantAssessmentorder. 7. In the caseof appealagainst orderu/s. 143(3)read withS.144A-2copies of thedirections of the JointCommissioneru/s. 144A 8. In the caseof appealagainst orderu/s. 143 read

with S. 147-2copies of original ass-essmentorder, if any.9. Proof of payment of appeal filingfee.10. Affidavitstatingreasons for

delay in filingappealbeyond 60days indelayed filing.

253(4) ITAT(Crossobjec-tion)

30 daysof receiptof noticeof appealby otherparty

NIL 36A Same asabove(exceptinstead of Form 36,Form 36A)

The Assessee/A.O.(who may or maynot have filledappeal) may filethe crossobjections againstany part of CIT(A)

order. No feespayable.

Section Subjectmatter

of revision

revise

Who

can Time limit Remarks

263 Any orderpassed by the

CIT 2 years from the end of thefinancial year in which order

1. CIT mustdisclose





AssessingOfficer which iserroneous andprejudicial tothe interest of the revenue

sought to be revised waspassed except in situationenumerated u/s 263(3).

reasons/grounds inhis notice toassessee forproposed revision.He shall givereasonableopportunity of

being heard toAssessee before anorder u/s 263passed. 2. CIT has thepower to call forand examine therecord of anyproceeding underthe Act. 3. The Assessment

Order must be ‘erroneous’ as wellas ‘prejudicial tothe interest of revenue’ before theaction can be takenunder this section. 4. The CIT has jurisdiction andpower to initiateproceedings under

S. 263 in respect of all issues nottouched by the CIT(A) in the appellateorder. 5. The expression ‘erroneous’ and ‘prejudicial to theinterest of revenue’ granting jurisdiction to CIThave been subject

matter of ragingcontroversies. 6. An appealagainst the orderof CIT u/s 263 liesin ITAT u/s 253.

264 Any orderpassed by theofficersubordinate to

CIT Exception:

1. Applies to anorder other

CIT a) If CIT revises on hismotion-1 year b) If assessee makes anapplication-1 year from dateof communication/knowledgeof the order (CIT has powerto condone delay), order to

1. The provisioncan be beneficiallyused by theAssessee for

seekingappropriate relief from CIT wherecertain claims,





RECTIFICATION

than an orderto which S. 263applies. 2. Whereappeal liesbefore CIT (A) /

ITAT or thetime limit forfiling the appealhas notexpired.

be passed within one yearfrom the end of the F.Y inwhich application is made.

relief could not beclaimed before theAO or appeal couldnot be filed beforeCIT(A) in time forany reason.

2. Application bythe Assessee to beaccompanied by afee of Rs.500. 3. An order cannotbe said to havebeen made subjectto an (effective)appeal if the appealhas been disposedof by CIT(A) orITAT without

passing an orderon merits.

4. S. 264 isenacted for thebenefit of theAssessee. Orderu/s 264 can not beprejudicial toAssessee. 5. The order of CITu/s 264 is notappealable beforeITAT u/s 253 orHigh Court u/s260A. However, apetition for Writ of Certiorari underArticle 226 of theConstitution forquashing the orderof CIT will lie inappropriate cases.

Section Subjectmatter of

rectification

Who canrectify

Timelimit What can

berectified

Remarks

154 (a) Any orderpassed by anIT authority

under theprovisions of IT Act.

The Co-ordinate orsuperior IT

authoritypassing theoriginalorder

4 yearsfrom theend of the

financialyear inwhichorder was

Anymistake ‘apparent’

from therecord.

1. Debatable/controversialissues cannot be rectifiedu/s 154.

2. An appeal lies againstrectification orders. 3. An appeal lies against





(b) Intimationor deemedintimationu/s. 143(1)

passed. refusal to rectify themistake. 4. Rectification orderhaving effect of enhancingliability or reducing refundcould be passed only after

opportunity of hearing tothe assessee. 5. Rectification Applicationshall be disposed of withinsix months from the endof the month in which theapplication is made.

254(2) Any orderpassed byITAT

ITAT 4 yearsfrom the

date of theorder.

-do- 1. Filing Fee – Rs. 50 / - 2. Meaning of expression ‘mistake apparent’ highly

controversial in the wakeof divergent judicialpronouncements. 3. Failure to considermaterial on record ororder of ITAT, based onerroneous assumption of facts, non consideration of grounds, failure toconsider alternategrounds, nonconsideration of relevantprovisions of law/ rule/binding decisions inter aliaare some of the groundsfor rectification.

4. The ITAT cannot ‘review’ its order passedon merits in the garb of ‘rectification’ by resortingto S. 254(2).


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