Income Tax Appellate Tribunal

The Commissioner of Income-Tax (Appeals) is the first appellate authority and the Income Tax Appellate Tribunal (ITAT) is the second appellate authority. Appeal to the ITAT can be filed by any of the aggrieved party either by the taxpayer or by the Assessing Officer.The ITAT is constituted by the Central Government and functions under the Ministry of Law. ITAT consists of two classes of members – Judicial and Accountant. In this part you can gain knowledge about various provisions relating to appeals to the ITAT. Section 5A of the Income Tax Act of 1922 formed the Income Tax Appellate Tribunal (ITAT). The Ministry of Law and Justice operates this body and acts as a subordinate to the High Court of a particular region. ITAT has multiple benches in various states of this country.  Representing the Income Tax Department, Assessing Officers can pass orders through the Commissioner of Income Tax or CIT. However, orders passed by such entities may not be accepted by assessees at times Appeal to ITAT Appeal to ITAT includes the following parameters: The right to appeal against an order passed by CIT is a legal privilege; it is not an inherent or natural right associated with litigation.  It cannot be accessed if not clearly stated in the statute.  No appeal may be filed against any order, directive, or other action if no right of appeal has been granted by any statute concerning such order, direction, or other action. For example, you cannot appeal to ITAT for any orders concerning Section 264. No assessee is expressly granted the right to contest it in court.  ITAT Cause List he ITAT cause list refers to the list of cases scheduled to be heard by the Income Tax Appellate Tribunal (ITAT) on a particular day. It contains the following details of the case: Name of the appellant Respondent’s name Case number The date of filing the appeal The nature of the appeal, The date on which the case is listed for hearing.  Appealable orders in case of appeal by the Commissioner If the Principal Commissioner of Income-Tax or Commissioner of Income-Tax objects to the order passed by the Joint Commissioner of the Income-tax (Appeals) or the Commissioner of Income-Tax (Appeals) under section 154 or section 250, then he may direct the Assessing Officer to make an appeal to the ITAT against the orders of the Commissioner of Income-Tax (Appeals). This is Called as departmental appeal, i.e., the Income-Tax department moving to ITAT against the order of the Joint Commissioner of Income-tax (Appeals) or the Commissioner of Income-Tax (Appeals). The departmental appeal shall be allowed only in cases where the tax effect involved in the appeal exceeds Rs. 50,00,000. In other words, the Commissioner of Income-Tax candirect the Assessing Officer to file an appeal to the ITAT against the order of the Commissioner of Income-Tax (Appeals) only in those cases in which the tax effect [As amended by Finance Act, 2023]exceeds Rs. 50,00,000 [refer Circular No. 17/2019, Dated 08-08-2019]. Time- limit for presenting appeal Appeal to ITAT is to be filed within a period of 60 days from the date on which order sought to be appealed against is communicated to the taxpayer or to the Principal Commissioner of Income-Tax or Commissioner of Income-Tax (as the case may be).The ITAT may admit an appeal even after the period of 60 days if it is satisfied that there was sufficient cause for not presenting the appeal within the prescribed time. Form and signature The appeal to ITAT shall be filed in Form No. 36. In case of appeal by the taxpayer, the form of appeal, the grounds of appeal and the form of verification are to be signed and verified by the person authorised to sign the return of income under section 140. In other words, the Form of appeal is to be signed by the following persons:1. In case of appeal by the individual taxpayer, by the individual taxpayer himself or by a person duly authorised by him who is holding a valid power of attorney2. In case of a Hindu Undivided Family by the Karta of the family or if Karta is absent from India or is not capable for signing, by any other adult member of such family.3. In case of a company by the Managing Director or if Managing Director is not available or where there is no Managing Director by any director of the company.4. In case of a firm by the Managing Partner or if Managing Partner is not available or where there is no Managing Partner by any partner (not being a minor)5. In case of a LLP by the Designated Partner or if Designated Partner is not available or where there is no Designated Partner by any partner.6. In case of a Local Authority by the Principal Officer thereof7. In case of a Political Party by the Chief Executive Officer of such party8. In case of any other Association by the Principal Officer thereof or by any member of the Association.9. In case of any other Person by that Person or by some person competent to act on his behalf. What is Form 36 of Income Tax Act? Taxpayers can challenge any order passed by the Commissioner of Income Tax by filing Form 36. However, you get a specified time to appeal against the order with the High Court, generally 60 days. While making the Income Tax appeal, Form 36 must be filled with all the required details. It includes details of the order you are appealing against, relief sought, grounds of appeal, your name, address, and other details.  Form 36 Appeal Fees As per Section 253 of the Income Tax Act, the fees for filing an appeal to the Tribunal are as follows:  Rs 500 – when total assessed income is up to Rs 1 Lakh. Rs 1500 – when total assessed income is between Rs 1 Lakh and Rs 2 Lakhs. Rs 10000 or 1% of assessed income (whichever is less) – when total assessed income is

ITA. No. 387/JP/2022 PER: RATHOD KAMLESH JAYANTBHAI, AM These two appeals are filed by the assessee aggrieved from the order of the National Faceless Appeal Centre, Delhi [ Here in ITA Nos. 387 & 388/JP/2022 Pramod Kasliwal, Jaipur vs. ITO, Jaipur after referred as NFAC ] for the assessment year 2017-18 dated 02/09/2022 which is arising out of two separate orders. In turn one was from the order passed u/s 143(3) of the Act dated 21/11/2019 and another for the same A.Y i.e., 2017-18 for which separate order u/s 154 of the Act dated 30/01/2020 passed by the ld. AO. Aggrieved from the orders of the ld. AO in both the matters, the assessee has preferred an appeal before ld. CIT/NFAC. Feeling aggrieved and not satisfied with the order of CIT/NFAC, the assessee has raised these appeals before us and the grounds taken are as under:-  ITA No. 387/JP/2022 “1.                   The Learned CIT(A)- NFAC, Delhi, has grossly erred on facts and in law in not dealing with the Grounds of Appeal filed against AO’s Order u/s 154 of ITA dt. 30.01.20 which Order of AO in response to Rectification Application dt. 12.12.2019 by the Assessee was Summarily disposed off without any discussions on the mistakes apparent from record in the Order u/s 154 dt. 30.01.20 drawn attention to in the Rectification application viz., w.r.t. explicit claim of extended benefit of holding since the death of original owner of asset attracting Long term Capital Gains in terms of Explanation 1(b) to Sec.2(42A) read with sec. 49(1) of ITA. The learned CIT(A)- NFAC, Delhi, has further erred in law in sustaining the view of the AO in passing Order u/s 154, holding that since an Appeal contesting the Order in assessment u/s 143(3) of ITA, was pre filed by the Assessee in which all the issues raised in the Rectification application were already included, the Rectification 3                                        ITA Nos. 387 & 388/JP/2022 Pramod Kasliwal, Jaipur vs. ITO, Jaipur Application was not valid and accordingly rejected. While concluding on the issue in the case, the CIT(A)’s has not appreciated the fact that both the proceedings viz., pursuant to Order u’s 143(3) and the proceedings initiated by filing a Rectification application u/s 154, have different scope, object and purpose and in peculiar cases such as the present one, both these proceedings can be contested parallelly. The learned CIT(A)- NFAC, Delhi has further erred on facts as well as in law in declining to entertain the benefit of Sec. 54 of ITA pursuant to the assessee claiming Exemption only with respect to investment in cost of One Flat totaling to Rs. 1,70,50,000/- and not with reference to 5 Residential Flats, which number of Flats was only for the purposes of determination of total quantum of income under the head Long Term Capital Gains and not for the purposes of claiming Exemption benefit u/s 54 of ITA. The Appellant prays leave to add to, alter and/or amend the grounds of appeal at or before the time of hearing of appeal” ITA No. 388/JP/2022 “1.                       The Learned CIT(A)- NFAC, Delhi, AO has grossly erred on facts and in law in not dealing with the Grounds of Appeal filed against AO’s Order dt. 21.11.19 u/s 143(3) of ITA and in not expressly discussing the law and the facts of the case as submitted by the Assessee more than once in the course of assessment proceedings as also vide Written Submissions made in the course of Appeal on March 6, 2021 and passing Order in appeal wrongly copying/ replicating the Appeal Order of same date (02.09.2022 in Sec. 154 proceedings). The learned CIT(A)- NFAC, Delhi, has erred in fact and in law in not granting benefit of indexation in respect of the residential house asset received by inheritance from Late Father by Will and despite such undisputed fact of inheritance, denying to go by rule of law and declining benefit of Indexation from date of death of Father under given facts of the case and instead considering the period of holding from the date of Mothers death and in doing so ignoring 2. Explanation 1(b) to 2(42A) read with sec. 49(1) of ITA viz., the date of acquisition in the hands of the previous owner viz., father. And in this manner bypassing all the existing tax jurisprudence on the issue without assigning any reasons and giving finding. The learned CIT(A)- NFAC, Delhi has further erred on facts as well as in law in denying the benefit of Sec. 54 of ITA pursuant to the assessee Reinvestment into ONE New Flat so being built by the Developer explicitly for self use which fact disclosed right since the 4                                        ITA Nos. 387 & 388/JP/2022 Pramod Kasliwal, Jaipur vs. ITO, Jaipur beginning and all through the proceedings, in the Development Agreement, in ITR filed and in the course of various submissions made in the assessment proceedings and without controverting such fact and giving any finding on the said facts and rather on his own considering 5 Flats total consideration to be received by the Assessee towards Assessee’s share in total construction by the builder. The learned AO has further erred in law and on facts in wrongly calculating the tax and interest payable by the assessee firm based on aforesaid wrong calculations. The Appellant prays leave to add to, alter and/or amend the grounds of appeal at or before the time of hearing of appeal.” Since the issues raised in the assessee’s appeal for both the years are almost identical and therefore, these two appeals were heard together with the agreement of both the parties and are being disposed off by this consolidated order. The fact as culled out from the records is that the assessee has filed original return of income electronically on 24.07.2017 declaring total income at Rs. 1,05,46,290/-. The assessee derive income from business and capital gain during the year under The case of assessee was selected for limited scrutiny assessment under CASS (Computer Aided Scrutiny Selection) with the reason of “1. Deduction/exemption