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1. Before filing the appeal to CIT appeal the assessee has to pay
the amount of tax decided by assessing officer in his order.
2. But in certain circumstances the authority may exempt the
assessee from paying such tax before filing such appeal
Appealable orders against the orders passed by assessing officer
are as follows:
There are various penalties which can be imposed for various
defaults and if such penalty is imposed in that case an appeal can
be made to commissioner appeal.
Income Tax Appellate Tribunal (ITAT)
Constitution of ITAT and its members The central government constitute the Income tax
Appellate Tribunal (ITAT). It has two types of members i.e. accountant members and judicial
members.
Qualification of members of ITAT ➢Judicial Member:
Any person who has held a judicial office in India for at least 10 Years or
Who has been a member of Indian legal services grade II or an equal or higher post for minimum
three years or
Who has been an lawyer for at least 10 years
Qualification of members of ITAT ➢Accountant Member:
A practicing chartered accountant In India for at least 10 years or
A member of Indian Income tax services, group A and was on the post of additional
commissioner or on any higher post for a period of at least three years.
Appointment of Vice- president and President ➢
the central government may appoint out of the members one or more vice
president or presidents. Further the central government will appoint a siting
or retired judge of high court having at least 7 years of experience as judge
or
One of the vice presidents as the presidents of the ITAT.
Powers of Income tax Appellate Tribunal (ITAT)
The Income tax Appellate Tribunal (ITAT) shall exercise all the powers of
income tax authority as are given to them u/s 131. All the proceedings with
Income tax Appellate Tribunal (ITAT) shall be judicial proceedings.
Further, the vice presidents shall exercise those powers and functions as
are assigned to them in writing by president of Income tax Appellate
Tribunal (ITAT)
Functioning of Income tax Appellate Tribunal (ITAT)
➢Any case to appellate tribunal shall be heard by a Bench
(panel of judges)
➢Generally a bench has two members (one is judicial and other
one is accountant member)
Whenever an appeal is filed with Income tax Appellate Tribunal (ITAT) and the other party
gets notice of it, in that case if the other party also wants to file an appeal against such
appeal this is called memorandum of cross objection.
Where memorandum of cross objection is filed in that case both the parties are considered
as parties to the appeal.
the tax effect (loss to department in a case) must be more than the limits
specified below:
➢In case of appeal to Income tax Appellate Tribunal (ITAT) the tax effect
➢In case of appeal to Supreme court the tax effect must be 2,00,00,000.
Appealable orders to Income tax
Appellate Tribunal
(ITAT) Following are the order against which the appeal may be made to
Income tax Appellate Tribunal (ITAT)
1. Against the order passed by CIT appeal
2. Against the order of assessing officer in case of tonnage tax scheme.
3. Against revision order u/s 263
4. Against any other order of CIT/CCIT/DIT/DGIT
Procedure of orders passed by Income tax Appellate Tribunal (ITAT)
➢First of all while hearing the case, both the parties shall be heard by Income tax Appellate
Tribunal (ITAT).
➢In Normal circumstances the judgment shall be passed within four year from the year in
which appeal is filed
➢The cost of appeal shall be decided by the Income tax Appellate Tribunal (ITAT)
The copy of judgment shall be delivered to both the parties. The Income tax Appellate Tribunal
(ITAT) can make amendment in his order within a period of 6 months from passing its orders.
(But If the effect of this amendment is the increase in the net tax liability of the assessee in that
case he will be given a chance of hearing first).
In case of revision the principal commissioner or commissioner Income tax shall give
the taxer payer a chance to present his side and after hearing the assessee, the
commissioner may;
➢Cancel the order of assessing officer and ask him to pass new order
➢If the order was passed without any enquiry which was necessary
➢If the order were not passed as per decisions of high court or supreme court.