Income Tax Hand Book On Judicial Matters

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Income Tax Hand Book On Judicial Matters
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• The Income Tax Appellate Tribunal (ITAT)
  functions as the second appellate authority under
  the Direct Taxes Acts, allowing appeals from
  decisions of the Commissioner of Income Tax
  (Appeals). Established in 1941, ITAT includes
  both Judicial and Accountant members. Filing an
  appeal requires the submission of a scrutiny
  report by the Assessing Officer (AO),
  consideration of the tax effect, framing
  pertinent questions, and proper completion of
  Form No. 36. Timelines for the appeal process
  span 55 days from the receipt of the first
  appellate order to actual filing in ITAT. The
  structure of ITAT includes various roles, such as
  the President, Vice Presidents, and departmental
  members. In corporate insolvency, Assessing
  Officers should actively engage in Committee of
  Creditors (CoC) meetings when debts exceed 10 of
  total liabilities. The Special Leave Petition
  (SLP) is a crucial legal remedy allowing
  individuals to appeal to the Supreme Court
  against lower court decisions. The Supreme Court
  has broad discretion to grant SLPs based on
  substantial questions of law or instances of
  judicial errors. Filing an SLP involves adhering
  to specific procedural rules and timelines, with
  requirements such as obtaining a fitness
  certificate from the High Court and preparing
  necessary documentation. Key considerations for
  SLP proposals include ensuring the tax effect is
  significant, addressing revenue audit objections,
  and filing within the prescribed timeframe.

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• Chapter-I FUNCTIONS OF ITAT AND ISSUES RELATED TO
  REPRESENTATION BEFORE ITAT 1.
• Introduction The Commissioner of Income Tax
  (Appeals) serves as the first appellate
  authority, while the Income Tax Appellate
  Tribunal (ITAT) is the second appellate
  authority. Established in January 1941, the ITAT
  is a quasi-judicial institution that specializes
  in handling appeals under the Direct Taxes Acts.
  Both taxpayers and Assessing Officers can file
  appeals to the ITAT if they are dissatisfied with
  the decision of the first appellate authority.
  The ITAT operates under the Ministry of Law and
  comprises two types of members Judicial members
  and Accountant members.2. Pre-requisite for
  Filing Appeal before ITAT-
• 1. Scrutiny Report The Assessing Officer (AO) or
  Range Head must submit a scrutiny report under
  Section 253 of the Act to the concerned Principal
  Commissioner of Income Tax (PCIT), as per the
  Central Board of Direct Taxes (CBDT) Instruction
  No. 08/2011 F NO. 279/MISC./M-43/2011-ITJ,
  dated August 11, 2011. 2. Tax Effect Consider
  the tax effect for Income Tax and Wealth Tax
  cases, along with any exceptions. 3. Framing
  Questions Properly frame both question of fact
  and question of law. 4. Form No. 36 Ensure the
  correct completion and submission of Form No. 36.

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3. Timelines for filing Appeals to ITAT
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• 4. Constitution Departmental setup in ITAT
• Registrar
• Judicial Members
• Accountant Members
• Vice Presidents
• President
• Departmental Setup.
• CIT (DR) CIT
• Sr. AR-JC/Addl. CIT
• ITO(HQ) to CIT(DR) or Sr. AR
• CIT (DR)(ITAT)(Admin.)
• ITO (ITAT)(HQ)(Admin.)
• Inspectors
• OS/TA/MTS
• 5. Benches of ITAT i. Two Member Bench a.
  Typically consists of one Judicial Member and one
  Accountant Member. ii. Single Member Bench b. At
  least one bench headed by either a Judicial
  Member or an Accountant Member. iii. Special
  Benches c. Constituted to decide issues with
  wider ramifications. iv. Third Member Bench d.
  Formed when members of a division bench disagree
  on a particular issue.

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• 6. Appellate Proceedings Before ITAT
• i. Filing and Review The appellant files the
  appeal using Form No. 36, which is then reviewed
  by the Regis trar of ITAT. The Registrar checks
  for correctness, completeness, and ensures that
  all required fees are paid. If any discrepancies
  are found, notices are issued to the appellant
  for rectification.
• ii. Communication Once the appeal is accepted
  for further processing, the Registrar sends an
  appeal memo to the Respondent. At this stage, the
  Respondent has the option to file
  cross-objections if deemed necessary.
• iii. Hearing and Presentation Cases are listed
  in the cause list, and the proceedings are
  scheduled accordingly. During the hearing, the
  appellant presents facts, arguments, and
  supporting evidence as outlined in the paper
  book. Following this, the Respondent presents
  their rebuttal to the appellants contentions.
• iv. Order and Timeframe After the completion of
  arguments and evidence presentation, the Bench
  declares the case as heard. From this point, the
  Bench has a mandate to pass an order within 90
  days. If there are complexities or clarifications
  needed, the Bench may extend this timeframe by an
  additional 30 days.
• v. Resolution In cases where the members of the
  Bench are unable to reach a consensus or
  decision, the matter may be referred to a third
  member for resolution. If the case is released,
  it is listed for a fresh hearing before a new
  Bench to ensure a fair and thorough consideration
  of the issues at hand. The third member conducts
  hearings and must pass an order within 60 days of
  declaring the case as heard, with an option to
  extend this timeframe to 90 days for thorough
  deliberation.

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• 7. Powers Limitations of ITAT-
• Case Handling ITAT has the authority to hear
  cases and issue orders based on the merits
  presented.
• 2. Admission of Evidence ITAT can admit
  additional evidence if reasons are recorded for
  doing so.
• Fresh Assessments
• ITAT can set aside orders for fresh assessment
  by the Assessing Officer, either entirely (de
  novo) or regarding specific issues.
• 4. Review by CIT(A) ITAT can also set aside
  orders for a fresh decision by the CIT(A), either
  entirely or on specific issues.
• 5. Mistake Correction ITAT can correct
  mistakes apparent from the record based on
  applications from the parties involved.
• 6. Limitation on Order Recalls ITAT cannot
  recall orders that have been decided on their
  merits.Read more at https//taxguru.in/chartere
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