After tribunalisation in India emerged, the Government of India constituted a body, the ITAT, on January 25 1941. The full form of ITAT is the Income Tax Appellate Tribunal. Its formation took place under Section 5A of the Income Tax Act 1922. Keep reading this article to know more about this institution, its function, and its role.
Income Tax Appellate Tribunal is a quasi-judicial body introduced by the Government of India. This body works under the Ministry of Law and Justice. It has several benches in many locations; each branch has a regional jurisdiction.
The bench at ITAT is formed by the president and other members of this institution. Each bench has an accountant member and a judicial member.
Here, the president of ITAT or any other member is eligible to dispose of any appeal when the total income tax of an assessee as calculated by an IT officer is less than Rs. 50 lakh. Moreover, if a situation arises, the appellate tribunal holds the power to constitute a bench containing three members. Among them, there must be a judicial member and an accountant member.
Also, remember the decision taken by an appellate tribunal is irrevocable when it concerns factual matters.
Here are the main functions of an appellate tribunal:
These orders are appealable before an Income Tax Appellate Tribunal:
The Central Board of Direct Taxes (CBDT) is the body that sets the monetary limit applicable for filing an appeal. Moreover, according to instruction no. 17 / 2019 of CBDT, here is the breakup that denotes the extent of monetary terms during an appeal:
|For Filing Appeals Before||Monetary Limit (Rs.)|
|Appellate Tribunal||50 lakh|
|High Court||1 crore|
|Supreme Court||2 crore|
One should follow these steps to file an appeal with Income Tax Appellate Tribunal:
Step 1: Get Form No.36 for filing an appeal. Fill it like a paper book and provide documents as required under the appellate assessment order.
Step 2: Fill in the page numbers and carry indexation of the paper book at least a day before your hearing. Then submit it along with supporting proofs.
Step 3: Next, the bench will pardon any delay and consider the paper book. However, each paper book must be certified as a true copy.
Step 4: Hearing is scheduled for the next day and on another day if adjourned.
Step 5: In case of non-appearance of the appellant or the authorised representative at the scheduled hearing, the Tribunal will dispose of their appeal on the merits hearing of the respondent.
Step 6: However, in case an appellant appears afterwards and provides a valid reason for absence during the hearing, the Tribunal may reconsider the ex-parte order and restore the appeal.
These are the fees a person has to pay while filing an appeal:
The maximum time allotted to a person up to which they can file an appeal after the date of communication of issuing an order is 60 days.
Make sure you are aware of these points while filing a memorandum of cross-objection:
The Appellant and respondent can look for representation from an authorised figure to appear before an appellant. This authorised person must come under Section 288 of the Income Tax Act. However, one cannot avail of this service if an oath or personal examination is carried out in the hearing.
No party can present additional evidence in front of an appellate tribunal. However, if an ITAT seeks personal examination, affidavit, or other documents, they may allow for additional production of documents.
Here are some important things to know about orders issued by ITAT:
The work of an Income Tax Appellate Tribunal is vital for the advancement of other appellate tribunals. Go through the above sections to clearly understand their roles and functions.
Ans: An accountant member is a person who has more than ten years of experience in accountancy as a CA or Chartered Accountant. Also, he/she is a person working in the Income Tax Service, Group A and has been in the post of Additional Commissioner or other equivalent or higher position for three years.
Ans: Here are the Sections that the order of an income tax commissioner covers:
Section 154: Rectification of errors
Section 271: Failure to submit returns, income concealment, comply with notices, etc.
Section 271(A): Inappropriate maintenance of books of accounts
Section 272(A): Penalty for non-answering of questions, failure to sign statements, allow inspections, etc.
Ans: When your subject is unique, then a fee of Rs. 500 is chargeable to you. In addition, you may also have to pay an accompanying fee in the case of an application for a stay of demand of Rs. 500. This is applicable whenever one is filing an appeal.
Ans: There is a time limit of four years before a Tribunal can rectify a mistake made in its record after an Assessing Officer has notified it. The fee chargeable for this process amounts to Rs. 50.
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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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