Appeals to Appellate Tribunal

362(1)

Any assessee, aggrieved by any of the following orders, may appeal to the Appellate Tribunal against such order—

• (a) an order passed under this Act, by a Commissioner (Appeals) or a Joint Commissioner (Appeals);
• (b) an order passed by a Principal Commissioner or Commissioner under— (i) section 332(7) or (8) or (9), 351(2)(ii) or 354(3); or (ii) section 377 or 439 or 465; or (iii) section 287;
• (c) an order passed by a Principal Chief Commissioner or Chief Commissioner or a Principal Director General or Director General or a Principal Director or Director under section 377 or 465 or an order passed under section 287 amending any such order;
• (d) an order passed by an Assessing Officer under section 270(10) or 279, in pursuance of the directions of the Dispute Resolution Panel or an order passed under section 287 in respect of such order;
• (e) an order passed by an Assessing Officer under section 270(10) or 279, with the approval of the Principal Commissioner or Commissioner as referred to in section 274(12) or an order passed under section 287 or 288 in respect of such order; or
• (f) an order passed by an Assessing Officer under section 234(4).

362(2)

The Principal Commissioner or Commissioner may, if he objects to any order passed by the Joint Commissioner (Appeals) or the Commissioner (Appeals) under this Act, direct the Assessing Officer to appeal to the Appellate Tribunal against the order.

362(3)

Every appeal under sub-section (1) or (2) shall be filed within two months from the end of the month in which the order sought to be appealed against is communicated to the assessee or to the Principal Commissioner or Commissioner.

362(4)

The Assessing Officer or the assessee, on receipt of notice that an appeal against an order, has been preferred under sub-section (1) or (2) by the other party, may, irrespective of 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 manner, as prescribed, against any part of such order, 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).

362(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 (4), if it is satisfied that there was sufficient cause for not presenting it within that period.

362(6)

An appeal to the Appellate Tribunal shall be in such form and verified in such manner, as prescribed and shall, be accompanied by a fee of—

• (a) five hundred rupees, 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;
• (b) one thousand five hundred rupees, where the total income of the assessee, computed as aforesaid, in the case to which the appeal relates is more than one lakh rupees but not more than two lakh rupees;
• (c) 1% of the assessed income, subject to a maximum of ten thousand rupees, where the total income of the assessee, computed as aforesaid, in the case to which the appeal relates is more than two lakh rupees;
• (d) five hundred rupees, where the subject matter of an appeal relates to any matter, other than those specified in clauses (a), (b) and (c).

362(7)

No fee shall be payable for an appeal referred to in sub-section (2), or a memorandum of cross objections referred to in sub-section (4).

362(8)

An application for stay of demand shall be accompanied by a fee of five hundred rupees.

Explanation

Section Summary:

Section 362 of the new income tax law outlines the process for filing appeals to the Appellate Tribunal. It specifies who can file an appeal, the types of orders that can be appealed, the timelines for filing, the fees involved, and the procedures for cross-objections and stay of demand. This section is crucial for taxpayers and tax authorities who wish to challenge decisions made by lower authorities.

Key Changes:

1. Expanded Scope of Appealable Orders: The section now includes a broader range of orders that can be appealed, such as those passed by the Commissioner (Appeals), Joint Commissioner (Appeals), Principal Commissioner, Commissioner, and Assessing Officers under specific sections.
2. Cross-Objections: The provision for filing a memorandum of cross-objections has been explicitly detailed, allowing either party to respond to an appeal filed by the other party.
3. Fee Structure: The fee structure for filing appeals has been clearly defined based on the assessed income of the taxpayer, with specific amounts for different income brackets.
4. Stay of Demand Fee: A nominal fee of ₹500 is now required for applications seeking a stay of demand.

Practical Implications:

• For Taxpayers: Taxpayers who disagree with orders passed by lower authorities now have a clear pathway to appeal to the Appellate Tribunal. The section also allows for cross-objections, enabling taxpayers to respond to appeals filed by tax authorities.
• For Tax Authorities: The Principal Commissioner or Commissioner can direct the Assessing Officer to appeal against orders passed by the Commissioner (Appeals) or Joint Commissioner (Appeals), ensuring that the tax department can also challenge unfavorable decisions.
• Timelines: Appeals must be filed within two months from the end of the month in which the order is communicated, and cross-objections must be filed within 30 days of receiving notice of an appeal.

Critical Concepts:

• Appellate Tribunal: A quasi-judicial body that hears appeals against orders passed by lower tax authorities.
• Memorandum of Cross-Objections: A document filed by the opposing party in response to an appeal, allowing them to raise objections to specific parts of the order.
• Stay of Demand: A request to temporarily halt the enforcement of a tax demand while the appeal is being considered.

Compliance Steps:

1. Filing an Appeal:

   • Identify the order to be appealed.
   • Prepare the appeal in the prescribed format.
   • Pay the applicable fee based on the assessed income.
   • File the appeal within two months from the end of the month in which the order was communicated.

2. Filing Cross-Objections:

   • If the other party files an appeal, prepare a memorandum of cross-objections.
   • File the memorandum within 30 days of receiving notice of the appeal.

3. Stay of Demand:

   • If seeking a stay of demand, file an application along with a fee of ₹500.

Examples:

• Scenario 1: A taxpayer receives an order from the Commissioner (Appeals) disallowing certain deductions. The taxpayer disagrees and files an appeal with the Appellate Tribunal within the stipulated two-month period, paying a fee of ₹1,500 (since their assessed income is ₹1.5 lakh).
• Scenario 2: The tax department appeals against an order passed by the Commissioner (Appeals) that favored the taxpayer. The taxpayer, upon receiving notice of the appeal, files a memorandum of cross-objections within 30 days, challenging specific parts of the order.

This section ensures a structured and fair process for both taxpayers and tax authorities to resolve disputes at the Appellate Tribunal level.