Appealable orders before Commissioner (Appeals)
357
Any assessee or any deductor or any collector, aggrieved by any of the following orders, may appeal to the Commissioner (Appeals) against—
- (a) an order passed by a Joint Commissioner under section 231(4)(b);
- (b) an order against the assessee where the assessee denies his liability to be assessed under this Act; or
- (c) an order being an intimation under section 270(1) or 399(1), where the assessee or the deductor or the collector objects to the making of adjustments; or
- (d) any order of assessment under section 270(10), except an order passed in pursuance of directions of the Dispute Resolution Panel or an order referred to in section 274(12) or 271, where the assessee objects 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; or
- (e) an order of assessment, reassessment or recomputation under section 279 [except an order passed in pursuance of directions of the Dispute Resolution Panel or an order referred to in section 274(12)] or 283; or
- (f) an order made under section 169(3)(a); or
- (g) an order made under section 287 or 288 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 except an order referred to in section 274(12); or
- (h) an order made under section 306 treating the assessee as the agent of a non-resident; or
- (i) an order made under section 313(2) or (4); or
- (j) an order made under section 315; or
- (k) an order made under section 398; or
- (l) an order made under section 431; or
- (m) an order made under section 434; or
- (n) an order imposing or enhancing a penalty under Chapter XXI; or
- (o) an order imposing a penalty under section 412; or
- (p) an order passed under section 294(1)(c); or
- (q) an order imposing a penalty under section 298(2); or
- (r) an order made by an Assessing Officer 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
Section Summary:
Section 357 outlines the types of orders that can be appealed before the Commissioner (Appeals) by an assessee, deductor, or collector who feels aggrieved by such orders. This section provides a comprehensive list of orders, ranging from assessment-related decisions to penalty impositions, that can be challenged through an appeal process. The purpose is to ensure taxpayers have a recourse mechanism if they disagree with decisions made by tax authorities.
Key Changes:
- Expanded Scope of Appealable Orders: The section now includes a broader range of orders that can be appealed, such as those related to adjustments, penalties, and assessments. This is more detailed compared to earlier versions, which may have had a narrower scope.
- Exclusions Clarified: The section explicitly excludes certain orders, such as those passed under the directions of the Dispute Resolution Panel or specific orders under sections like 274(12) or 271, from being appealed under this provision.
- Board’s Discretion: A new provision (clause (r)) allows the Central Board of Direct Taxes (CBDT) to specify additional orders that can be appealed, based on the complexity or nature of the case.
Practical Implications:
- Taxpayer Rights: Taxpayers, deductors, or collectors now have a clearer and more extensive list of orders they can challenge, ensuring better protection of their rights.
- Increased Litigation: The expanded scope may lead to more appeals being filed, potentially increasing the workload for the Commissioner (Appeals).
- Clarity on Exclusions: Taxpayers must be aware of the specific orders that cannot be appealed under this section, such as those influenced by the Dispute Resolution Panel.
- CBDT’s Role: The CBDT’s authority to designate additional appealable orders provides flexibility but may also introduce uncertainty until such orders are specified.
Critical Concepts:
- Assessee, Deductor, Collector:
- Assessee: A person liable to pay tax under the Income Tax Act.
- Deductor: A person responsible for deducting tax at source (TDS).
- Collector: A person responsible for collecting tax at source (TCS).
- Dispute Resolution Panel (DRP): A body that resolves disputes in cases involving transfer pricing or international taxation. Orders passed under its directions are not appealable under this section.
- Adjustments: Modifications made by tax authorities to the income, tax, or loss declared by the taxpayer, often during processing of returns.
Compliance Steps:
- Identify Appealable Orders: Taxpayers must carefully review the list of orders in Section 357 to determine if their grievance falls within the appealable categories.
- File Appeal: Submit an appeal to the Commissioner (Appeals) within the prescribed time limit (usually 30 days from the date of the order).
- Documentation: Prepare and submit all relevant documents, including the order being appealed, supporting evidence, and grounds for appeal.
- Monitor CBDT Notifications: Stay updated on any additional orders specified by the CBDT as appealable under clause (r).
Examples:
- Scenario 1: A taxpayer receives an intimation under Section 270(1) where the tax authority has made adjustments to their declared income. If the taxpayer disagrees with these adjustments, they can file an appeal under Section 357(c).
- Scenario 2: A deductor is penalized under Section 412 for failing to deduct TDS. They believe the penalty is unjustified and can appeal the order under Section 357(o).
- Scenario 3: An assessee is treated as an agent of a non-resident under Section 306. If they disagree with this classification, they can appeal the order under Section 357(h).
By understanding Section 357, taxpayers can better navigate the appeal process and ensure their grievances are addressed effectively.