35
Appeals to the Appellate Tribunal.
36 an order passed by a 39[Deputy Commissioner (Appeals)] 40[before the 1st day of
253. October, 1998] 41[or, as the case may be, a Commissioner (Appeals)] under 42[***]
43
37
(1) [section 154], 43a[section 158BFA,]44[***] section 250, 45[section 270A,] 46[section
Any 271, section 271A47[, section 271AAB, section 271AAC, section 271AAD] 48[,
assess section 271J] or section 272A]; or
ee
aggri
eved38
(a)
47
[(aa) an order passed by a Joint Commissioner (Appeals) under section 154, section 250,
section 270A, section 271, section 271A, section 271AAC, section 271AAD or
section 271J; or]
49
[(b) an order passed by an Assessing Officer under clause (c) of section 158BC, in
respect of search initiated under section 132 or books of account, other documents or
any assets requisitioned under section 132A, after the 30th day of June, 1995, but
before the 1st day of January, 1997; or]
50
[(ba) an order passed by an Assessing Officer under sub-section (1) of section 115VZC;
or]
51
[(c) an order passed by,—
(i) a Principal Commissioner or Commissioner under section 12AA or section 12AB or
under clause (vi) of sub-section (5) of section 80G or under section 263 or under
section 270A or under section 271 or under section 272A or an order passed by him
under section 154 amending any such order; or
(ii) a Principal Chief Commissioner or Chief Commissioner or a Principal Director
General or Director General or a Principal Director or Director under section 263 or
under section 272A or an order passed by him under section 154 amending any such
order; or]
52
[(d) an order passed by an Assessing Officer under sub-section (3), of section 143 or
section 14753[or section 153A or section 153C] in pursuance of the directions of the
Dispute Resolution Panel or an order passed under section 154 in respect of such
order;]†
54
[(e) an order passed by an Assessing Officer under sub-section (3) of section 143 or
section 147 or section 153A or section 153C with the approval of the 55[Principal
Commissioner or] Commissioner as referred to in sub-section (12) of section 144BA
or an order passed under section 154 or section 155 in respect of such order;]†
56
[(f) an order passed by the prescribed authority under 57[sub-clause (iv) or sub-clause (v)
or] sub-clause (vi) or sub-clause (via) of clause (23C) of section 10.]
(2) The by any of the following orders may appeal to the Appellate Tribunal against such order—
55
[Principal Commissioner or] Commissioner may, if he objects to any order passed by a 58[Deputy
Commissioner (Appeals)] 59[before the 1st day of October, 1998] 60[or, as the case may be, *a 61[the
Joint Commissioner (Appeals) or the] Commissioner (Appeals)] under 62[section 154 or] section 250,
direct the 63[Assessing] Officer64 to appeal to the Appellate Tribunal against the order.
(2A) 65[***]
(3) Every appeal under sub-section (1) or sub-section (2) shall be filed within 65a[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 66[Principal Commissioner or] Commissioner, as the case may be :
67
[Provided that in respect of any appeal under clause (b) of sub-section (1), this sub-section shall have
effect as if for the words "sixty days", the words "thirty days" had been substituted.]
(3A) 68[***]
69
[(4) The Assessing Officer or the assessee, as the case may be, on receipt of notice that an appeal
70
[against an order], has been preferred under sub-section (1) or sub-section (2) by the other party, may,
notwithstanding 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 prescribed
manner, against 71[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).]
(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 sub-section (4), if it is
satisfied that there was sufficient cause72 for not presenting it within that period.
73
[(6 where the total income of the assessee as computed by the Assessing Officer, 75in the
) An case to which the appeal relates, is one hundred thousand rupees or less, five hundred
appe rupees,
al to
the
App
ellat
e
Trib
unal
shall
be
in
the
pres
crib
ed
for
m74(
a)
(b) where the total income of the assessee, computed as aforesaid, 75in the case to which
the appeal relates is more than one hundred thousand rupees but not more than two
hundred thousand rupees, one thousand five hundred rupees,
(c) where the total income of the assessee, computed as aforesaid, 75in the case to which
the appeal relates is more than two hundred thousand rupees, one per cent of the
assessed income, subject to a maximum of ten thousand rupees,
76
[(d) where the 77subject matter of an appeal relates to any matter, other than those specified
in clauses (a), (b) and (c), five hundred rupees:]
and shall be verified in the prescribed manner and shall, in the case of an appeal made, on or after the
1st day of October, 1998, irrespective of the date of initiation of the assessment proceedings relating
thereto, be accompanied by a fee of,—
78
[Provided that no fee shall be payable in the case of an appeal referred to in sub-section (2), or, sub-
section (2A) as it stood before its amendment by the Finance Act, 2016, or, a memorandum of cross
objections referred to in sub-section (4).]
(7) An application for stay of demand shall be accompanied by a fee of five hundred rupees.]
79
(a) optimising utilisation of the resources through economies of scale and functional
specialisation;
(b) introducing a team-based mechanism for appeal to the Appellate Tribunal, with
dynamic jurisdiction.
(9) The Central Government may, for the purpose of giving effect to the scheme made under sub-
section (8), by notification in the Official Gazette, direct that any of the provisions of this Act shall not
apply or shall apply with such exceptions, modifications and adaptations as may be specified in the
notification:
Provided that no direction shall be issued after the 31st day of March, [(8) The Central Government
may make a scheme, by notification in the Official Gazette, for the purposes of appeal to the Appellate
Tribunal under sub-section (2), so as to impart greater efficiency, transparency and accountability by—
80
[2025].
(10) Every notification issued under sub-section (8) and sub-section (9) shall, as soon as may be after
the notification is issued, be laid before each House of Parliament.]
†Word "or" should be inserted.
*Word "a" should be omitted.
35. See rule 47(1) and Form Nos. 36 and 36A for form of appeal to Appellate Tribunal and
form of cross-objections.
36. See also Instructions issued by the Income-tax Appellate Tribunal. For details, see
Taxmann's Income-tax Rules/Master Guide to Income-tax Act.
37. For relevant case laws, see Taxmann's Master Guide to Income-tax Act.
38. For the meaning of the term "assessee aggrieved", see Taxmann's Direct Taxes Manual,
Vol. 3.
39. Substituted for "Appellate Assistant Commissioner" by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1988.
40. Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
41. Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
42. "sub-section (2) of section 131," omitted by the Direct Tax Laws (Amendment) Act, 1989,
w.e.f. 1-4-1989.
43. Inserted by the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964.
43a. Inserted by the Finance (No. 2) Act, 2024, w.e.f. 1-10-2024.
44. "section 246A," omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
Earlier, it was inserted by the Direct Tax Laws (Amendment) Act, 1987, with effect from
the same date.
45. Inserted by the Finance Act, 2016, w.e.f. 1-4-2017.
46. Substituted for "or section 271" by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-
1976.
47. Inserted by the Finance Act, 2023, w.e.f. 1-4-2023.
48. Inserted by the Finance Act, 2018, w.e.f. 1-4-2018.
49. Substituted by the Income-tax (Amendment) Act, 1997, w.e.f. 1-1-1997. Prior to its
substitution, clause (b), as inserted by the Finance Act, 1995, w.e.f. 1-7-1995, read as
under :
"(b) an order passed by an Assessing Officer under clause (c) of section 158BC; or"
Earlier, clause (b) was amended by the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964, the
Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976, the Finance (No. 2) Act, 1977, w.e.f. 10-7-
1978 and later on omitted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.
50. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004.
51. Substituted by the Finance Act, 2023, w.e.f. 1-4-2023. Prior to its substitution, clause (c),
as amended by the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964, Taxation Laws
(Amendment) Act, 1975, w.e.f. 1-4-1976, Finance Act, 1988, w.e.f. 1-4-1988, Direct Tax
Laws (Amendment) Act, 1989, w.e.f. 1-4-1989, Finance Act, 1999, w.e.f. 1-6-1999,
Finance Act, 2002, w.e.f. 1-6-2002, Finance Act, 2007, w.e.f. 1-6-2007, Finance (No. 2)
Act, 2009, w.e.f. 1-10-2009, Finance (No. 2) Act, 2014, w.r.e.f. 1-6-2013, Finance Act,
2016, w.e.f. 1-4-2017, Taxation and Other Laws (Relaxation and Amendment of Certain
Provisions) Act, 2020, w.r.e.f. 1-6-2020 & w.e.f. 1-4-2021 and Finance Act, 2020, w.e.f. 1-
6-2020, read as under:
"(c) an order passed by a Principal Commissioner or Commissioner under section 12AA or section
12AB or under clause (vi) of sub-section (5) of section 80G or under section 263 or under section
270A or under section 271 or under section 272A or an order passed by him under section 154
amending his order under section 263 or 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 272A; or"
52. Inserted by the Finance (No. 2) Act, 2009, w.e.f. 1-10-2009.
53. Inserted by the Finance Act, 2012, w.r.e.f. 1-10-2009.
54. Inserted by the Finance Act, 2013, w.e.f. 1-4-2016. Earlier, clause (e) was inserted by the
Finance Act, 2012, w.e.f. 1-4-2013 and later on omitted by the Finance Act, 2013, w.e.f. 1-
4-2013.
55. Inserted by the Finance (No. 2) Act, 2014, w.r.e.f. 1-6-2013.
56. Inserted by the Finance Act, 2015, w.e.f. 1-6-2015.
57. Inserted by the Finance Act, 2017, w.e.f. 1-4-2017.
58. Substituted for "Appellate Assistant Commissioner" by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1988.
59. Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
60. Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
61. Inserted by the Finance Act, 2023, w.e.f. 1-4-2023.
62. Inserted by the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964.
63. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-
1988.
64. For the meaning of the expression "Assessing Officer", see Taxmann's Direct Taxes
Manual, Vol. 3.
65. Omitted by the Finance Act, 2016, w.e.f. 1-6-2016. Prior to its omission, sub-section (2A),
as inserted by the Finance Act, 2012, w.e.f. 1-7-2012 and later on amended by the
Finance (No. 2) Act, 2014, w.r.e.f. 1-6-2013, read as under :
"(2A) The Principal Commissioner or Commissioner may, if he objects to any direction issued by
the Dispute Resolution Panel under sub-section (5) of section 144C in respect of any objection filed
on or after the 1st day of July, 2012, by the assessee under sub-section (2) of section 144C in
pursuance of which the Assessing Officer has passed an order completing the assessment or
reassessment, direct the Assessing Officer to appeal to the Appellate Tribunal against the order."
65a. Substituted for "sixty days of the date on" by the Finance (No. 2) Act, 2024, w.e.f. 1-10-
2024.
66. Inserted by the Finance (No. 2) Act, 2014, w.r.e.f. 1-6-2013.
67. Inserted by the Finance Act, 1995, w.e.f. 1-7-1995.
68. Omitted by the Finance Act, 2016, w.e.f. 1-6-2016. Prior to its omission, sub-section (3A),
as inserted by the Finance Act, 2012, w.e.f. 1-7-2012, read as under :
"(3A) Every appeal under sub-section (2A) shall be filed within sixty days of the date on which the
order sought to be appealed against is passed by the Assessing Officer in pursuance of the directions
of the Dispute Resolution Panel under sub-section (5) of section 144C."
69. Substituted by the Finance Act, 2016, w.e.f. 1-6-2016. Prior to its substitution, sub-
section (4), as amended by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978, Direct Tax
Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 and Finance Act, 2012, w.e.f. 1-7-2012,
read as under :
"(4) The Assessing Officer or the assessee, as the case may be, on receipt of notice that an appeal
against the order of the Deputy Commissioner (Appeals) or, as the case may be, the Commissioner
(Appeals) or the Assessing Officer in pursuance of the directions of the Dispute Resolution Panel
has been preferred under sub-section (1) or sub-section (2) or sub-section (2A) by the other party,
may, notwithstanding 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
prescribed manner, against any part of the order of the Assessing Officer (in pursuance of the
directions of the Dispute Resolution Panel) or Deputy Commissioner (Appeals) or, as the case may
be, the Commissioner (Appeals), 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) or sub-section
(3A)."
70. Substituted for "against the order of the Commissioner (Appeals)" by the Finance Act,
2023, w.e.f. 1-4-2023.
71. Substituted for "any part of the order of the Commissioner (Appeals)" by the Finance Act,
2023, w.e.f. 1-4-2023.
72. For the meaning of the expression "sufficient cause", see Taxmann's Direct Taxes
Manual, Vol. 3.
73. Substituted for sub-section (6) by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Prior
to its substitution, sub-section (6) was amended by the Taxation Laws (Amendment) Act,
1970, w.e.f. 1-4-1971, the Finance Act, 1981, w.e.f. 1-6-1981 and the Finance Act, 1992,
w.e.f. 1-6-1992 and later on substituted by the Finance Act, 1993, w.r.e.f. 1-6-1992.
74. See rule 47 and Form Nos. 36 & 36A.
75. For the meaning of the expression "in the case to which the appeal relates", see
Taxmann's Direct Taxes Manual, Vol. 3.
76. Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
77. For the meaning of the expression "subject matter of an appeal", see Taxmann's Direct
Taxes Manual, Vol. 3.
78. Substituted by the Finance Act, 2016, w.r.e.f. 1-7-2012. Prior to its substitution, proviso
read as under :
"Provided that no such fee shall be payable in the case of an appeal referred to in sub-section (2) or
a memorandum of cross-objections referred to in sub-section (4)."
79. Sub-sections (8) to (10) inserted by the Taxation and Other Laws (Relaxation and
Amendment of Certain Provisions) Act, 2020, w.e.f. 1-11-2020.
80. Substituted for "2024" by the Finance Act, 2024, w.e.f. 1-4-2024. Earlier "2024" was
substituted for "2022" by the Finance Act, 2022, w.e.f. 1-4-2022.
