Meaning of an Appeals and its authorities under Income Tax Act 1961

Appeal

Appeal refers to an act of referring the case/matter/situation to higher authority against the order passed by a lower authority in respect of that case or matter. It implies a complaint to a higher authority against the order or judgement of an administrative authority or appellate authority. If an assessee is not satisfied by an assessment order/any other order issued by any income tax authority and such an aggrieved assessee can present his case before specified authorities prescribed under Income Tax Act. Such prescribed authorities constitute appellate authorities.

Various Appellate Authorities under Income Tax Act 1961

1. Appeal to the commissioner (Appeals) (sec 246(2))
Any assessee aggrieved by any of the following orders may appeal to the commissioner against such order:

(i) Against an order passed by a Joint commissioner u/s 115VP
     (3)(ii) or an order making the assessee liable to tax but where
      he denies his liability.

(ii) An order of assessment, reassessment, or re-computation of income u/s 147 or u/s 150.

(iii) An order u/s 154 or 155 by which hsi tax liability is enhanced or refund or to allow the claim made under him under either of these section.

(iv) An order issued u/s 163 regarding treating a person as agent.

(v) An order made u/s 170(2) or (3) regarding assessment on succession.

(vi) An order made u/s 171 regarding partition of HUF.

(vii)An order made u/s 201.

(viii) An order made u/s 237 regarding refund

(ix) An order of imposing or enhancing penalty u/s 275(1A).

(x) An order made by an Assessing Officer except by Deputy Commissioner under the provision of this Act in the case of such persons or class of persons as directed by CBDT.

2. Appeal to Appellate Tribunal
If an assessee is not satisfied with an order passed by the commissioner he is entitled  under section 253 to file an appeal to higher authority  known as Appellate Tribunal.
                The Tribunal is the final authority on question of fact. Unlike commissioner the Appellate Tribunal is not an income tax authority but it is a final fact finding authority. The decision of Appellate Tribunal  on a question of fact cannot be distributed and it can be revised only where there is no evidence to support it or where the finding is perverse.

3. Appeal to National Tax Tribunal
With effect from 06-01-2006 an appeal against any order of Income Tax Appellate Tribunal shall lie to the National Tax Tribunal if the case involves substantial question of law. The NIT has been set up to adjudicate the matters relating to both direct and indirect taxes.

4. Appeal to Supreme Court:
An appeal to supreme court can be made:

(i) Against the judgement of the high court on reference made u/s 256

(ii) Against the order of high court made u/s 254 before 01-10-98

(iii) U/s 262(1) the appeal will be heard in the same manner as is applicable in appeals against the decrees of high court.

(iv) The cost of appeal shall be at the discretion of Supreme Court. If the supreme court varies the judgement of the high court, effect shall be given to the judgement of supreme court in same manner as given u/s 260.