Income Tax 2025

Appearance

CHAPTER XVIII APPEALS, REVISIONS AND ALTERNATE DISPUTE RESOLUTIONS A.—Appeals I.—Appeals to Joint Commissioner (Appeals) and Commissioner (Appeals)

Appealable orders before Joint Commissioner (Appeals) ​

356(1) ​

Any assessee, aggrieved by any of the following orders of an Assessing Officer (below the rank of Joint Commissioner) may appeal to the Joint Commissioner (Appeals) against––

  • (a) an order being an intimation under section 270(1) or 399(1), where the assessee objects to the making of adjustments; or
  • (b) an order under section 270(10) or 271, 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; or
  • (c) an order of assessment, reassessment or recomputation under section 279; or
  • (d) an order under section 398; or
  • (e) an order imposing penalty under Chapter XXI; or
  • (f) an order under section 287 or 288 amending any of the orders or intimations in clauses (a) to (e).

356(2) ​

No appeal shall be filed before the Joint Commissioner (Appeals) if an order referred to in sub-section (1) is passed by or with the prior approval of, an income-tax authority above the rank of Deputy Commissioner.

356(3) ​

The Board or an income-tax authority so authorised by the Board in this regard, may transfer—

  • (a) any appeal filed against an order referred to in sub-section (1) and any matter arising out of or connected with such appeal, which is pending before the Commissioner (Appeals), to the Joint Commissioner (Appeals); or
  • (b) any appeal which is pending before a Joint Commissioner (Appeals) and any matter arising out of or connected with such appeal and which is so pending, to the Commissioner (Appeals), regardless of anything contained in sub-sections (1) and (3)(a), who may proceed with such appeal or matter, from the stage at which it was before it was so transferred.

356(4) ​

Where an appeal is transferred under sub-section (3), the appellant shall be given an opportunity of being reheard.

356(5) ​

For the disposal of appeal under this section, the Central Government may notify a scheme, so as to dispose of appeals in an expedient manner with transparency and accountability, by eliminating the interface between the Joint Commissioner (Appeals) and the appellant, to the extent technologically feasible and direct that any of the provisions of this Act relating to jurisdiction and procedure for disposal of such appeals, shall not apply or shall apply with exceptions, modifications and adaptations.

356(6) ​

The Board may specify that any provisions of this section shall not apply to any case or class of cases.

356(7) ​

In this section, “status” means the category of person as defined in section 2(77) under which the assessee is assessed.

Explanation

Section Summary: ​

Section 356 of the Income Tax Act outlines the process for filing appeals before the Joint Commissioner (Appeals) or Commissioner (Appeals) when a taxpayer disagrees with certain orders issued by the Assessing Officer. It specifies the types of orders that can be appealed, the conditions under which appeals can be filed, and the authority’s power to transfer appeals between Joint Commissioner (Appeals) and Commissioner (Appeals). Additionally, it introduces provisions for a technology-driven, transparent, and expedited appeal disposal process.

Key Changes: ​

  1. Expanded Scope of Appealable Orders: The section explicitly lists the types of orders that can be appealed, including intimation orders, assessment orders, penalty orders, and orders amending previous decisions.
  2. Transfer of Appeals: The Board or authorized income-tax authorities can now transfer appeals between Joint Commissioner (Appeals) and Commissioner (Appeals) for efficient disposal.
  3. Technology-Driven Disposal: A new provision allows the Central Government to notify a scheme for expedited, transparent, and technology-driven appeal disposal, reducing direct interaction between taxpayers and authorities.
  4. Exclusion of Certain Cases: The Board has the authority to exclude specific cases or classes of cases from the provisions of this section.

Practical Implications: ​

  1. For Taxpayers: Taxpayers now have a clear list of orders they can appeal, reducing ambiguity. The option for technology-driven appeal disposal may speed up the resolution process.
  2. For Authorities: The ability to transfer appeals between Joint Commissioner (Appeals) and Commissioner (Appeals) allows for better workload management and faster resolution.
  3. For Compliance Processes: The introduction of a technology-driven scheme may require taxpayers to adapt to new digital processes for filing and managing appeals.

Critical Concepts: ​

  1. Appealable Orders: These include:
    • Intimation orders (e.g., adjustments under Section 270(1) or 399(1)).
    • Assessment, reassessment, or recomputation orders under Section 279.
    • Penalty orders under Chapter XXI.
    • Orders amending previous decisions under Sections 287 or 288.
  2. Status: Refers to the category of the taxpayer (e.g., individual, company, HUF) as defined under Section 2(77).
  3. Transfer of Appeals: Appeals can be moved between Joint Commissioner (Appeals) and Commissioner (Appeals) for efficient handling, and taxpayers must be given a chance to be reheard if their appeal is transferred.

Compliance Steps: ​

  1. Identify Appealable Orders: Determine if the order falls under the categories listed in Section 356(1).
  2. File Appeal: Submit the appeal to the appropriate authority (Joint Commissioner (Appeals) or Commissioner (Appeals)) within the prescribed time limit.
  3. Prepare for Rehearing: If the appeal is transferred, be ready to present your case again.
  4. Adapt to Digital Processes: Stay updated on any technology-driven schemes notified by the Central Government for appeal disposal.

Examples: ​

  1. Scenario 1: A taxpayer receives an intimation order under Section 270(1) with adjustments they disagree with. They can file an appeal before the Joint Commissioner (Appeals) under Section 356(1)(a).
  2. Scenario 2: A taxpayer’s appeal is transferred from the Joint Commissioner (Appeals) to the Commissioner (Appeals) for better handling. The taxpayer is notified and given an opportunity to be reheard.
  3. Scenario 3: The Central Government notifies a scheme for digital appeal disposal. The taxpayer submits their appeal online and receives updates electronically, reducing the need for in-person interactions.

This section aims to streamline the appeal process, making it more efficient and accessible for taxpayers while maintaining transparency and accountability.