As a significant move to ensure the speedy disposal of Income Tax cases, the Government by the Union Budget has proposed to amend the Income Tax Act, of 1961.
Clause 102 of the Bill seeks to amend section 253 of the Income-tax Act relating to appeals to the Appellate Tribunal. Sub-section (1) of the said section details the types of orders passed under various sections of the Income-tax Act against which an aggrieved assessee may appeal to the Appellate Tribunal.
The Finance Bill 2023 proposed to amend clause (a) of the said sub-section to provide that penalty orders passed by Commissioner (Appeals) under sections 271AAB, 271AAC and 271AAD shall also be appealable to the Appellate Tribunal.
Further amending of sub-section (1) of the said section by inserting a new sub-clause (aa) was also proposed by the union Budget 2023 to provide that an order passed by a Joint Commissioner (Appeals) under section 154, section 250, section 270A, section 271, section 271A, section 271AAC, section 271AAD or section 271J shall be appealable before the Appellate Tribunal.
The significant amendment will provide appealability to the Appellate Tribunal of an order passed under section 263 by a Principal Chief Commissioner or Chief Commissioner or an order passed under section 154 even after amending any such order.
The Union Budget 2023 also focuses on amending sub-section (4) of the said section to enable the filing of a memorandum of cross-objections in all classes of cases against which appeal can be made to the Appellate Tribunal.
By the Proposed amendment to section 264 of the Income-tax Act which is relating to the revision of other orders, Significant changes could be brought to the appeal provisions and it will substitute the expression “the Commissioner (Appeals)” with “the Joint Commissioner (Appeals) or the Commissioner (Appeals)”.
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