Section 250 Of The Income Tax Act: Procedure In Appeal, Provisions And Sub-Sections

Income Tax

Section 250 of the Income Tax Act, 1961, talks about the procedure in appeal by a person denying liability of tax deduction in certain cases. Section 250 describes the procedures and powers of  CIT (Commissioner of Income Tax) Appeals whenever cases are presented before them such as the passing of the order, how to carry out the litigation, etc. This blog summarizes all the details of Section 250 of the Income Tax Act. Read on!

Provisions of Section 250 of the Income Tax Act

Sub-sections of Section 250 and their details are listed below.

Section 250 (1)

The Commissioner (Appeals) will schedule a day and fix a venue for hearing of the Appeal and notify the appellant about this as well as the Assessing Officer against whose order the Appeal is favoured.

Section 250 (2)

Individuals mentioned below will have the right to speak for their cause at the hearing of the Appeal:

• Assessing Officer, either by a representative or in-person 
• The appellant, either by a lawful representative or in-person 

Section 250 (3)

The Commissioner (Appeals) holds the right to adjourn the hearing of an Appeal at intervals. 

Section 250 (4)

The Commissioner (Appeals), prior to dismissal of an appeal, if finds appropriate can make further inquiries himself or direct the Assessing officer to do so and produce results of those before the Commissioner.

Section 250 (5)

The Commissioner (Appeals), at the session of the Appeal, can allow an appellant to go to any grounds of Appeal, otherwise not mentioned in the grounds of Appeal, only when the Commissioner finds it satisfactory that the removal of that ground from the grounds of Appeal was not intentional or unreasonable.

Section 250 (6)

 If the Commissioner (Appeals) dismisses an appeal, it must be done in writing. He/she has to mention all points for such a decision, the motive for the decision and the decision taken thereon. 

Section 250 (6A)

In each appeal, the Commissioner (Appeals), if possible, can hear and take decisions on such Appeal within one year from the end of the financial year on which the Appeal is filed under sub-section(1) of Sec. 246A.

Section 250 (6B)*

Central Government may introduce a scheme, by notifying in Official Gazette, for purpose of discarding an Appeal by the Commissioner, to provide more proficiency, clarity and accountability by-

• Omitting the confluence between the Commissioner and appellant during appellate proceedings to technologically attainable limit
• Optimising usage of resources through economies of scale and functional specialisation
• Introducing an appellate system with influential jurisdiction where one or more than one Commissioner shall dismiss an appeal

*Sub-section 6(B), 6(C), and 6(D) of Section 250 have been substituted with effect from January 4, 2020, by Finance Act, 2020. 

Section 250 (6C)

Central Government can give effect to this scheme made under sub-section 6(B), by notifying in Official Gazette, issue that any provision relating to jurisdiction and process of dismissal of appeals by the Commissioner shall apply or not apply with such deviations, moderation or adaptations as mentioned in the published notification. 

This is provided that no direction can be published after March 31, 2022.

Section 250 (6D)*

Every notification issued under subsections 6(B) and 6(C) should be presented before both Houses of Parliament at the earliest after notification. 

Section 250 (7)

If an appeal is dismissed, the Commissioner (Appeals) should communicate the order issued by him to the appellant and the Principal Chief Commissioner or Principal Commissioner or Commissioner Chief Commissioner. 

Final Word

Section 250 of the Income Tax Act is about ‘appeal by a person denying liability to deduct tax at certain cases’. If you have been notified by the Income Tax Department, it is best to talk to a lawyer and seek the best path forward.

FAQs on Section 250 of the Income Tax Act

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