APPEAL AND REVISION IN TAXATION

GROUP MEMBERS:-NIDHI SRIVASTAVAAASHIMA BHUTANIDIVYA SINGHTRIPTI NEGI

Appeal

An appeal is a process for requesting a formal change to an official decision.

An appellate court, commonly called an appeals court , is any court of law that is empowered to hear an appeal of a trial court or other lower tribunal.

Right of Appeal

The right of appeal is not an inherent but a statutory right.

Once the law provides for an appeal, a person who complies with the prescribed conditions gets the vested right to have the appeal dealt with under the law.

Appellate hierarchy and Jurisdiction

Supreme Court

High Court

Income Tax Appellate Tribunal

Commissioner of Income Tax (Appeals)

Assessing Officer

Eligibility to file appeal before CIT(A) Only a person aggrieved by an order would

have a right to file an appeal. An assessee can be said to be aggrieved

when he is required to bear tax, legal burden or is denied some benefit to which he claims to be entitled.

In case of adverse order passed in the matter of deceased person, his legal heirs can file appeal.

Appeal is required to be filed 30 days from the receipt of order to be appealed against.

Filing Fee – CIT(A)

The following rates are payable for filing the appeal before Commissioner (Appeals)

Rs.1 lakh or less - Rs.250 Rs.1 lakh but not more than 2 lakh -

Rs.500 More than Rs.2 lakhs - Rs.1000 Appeals involving any other matter -

Rs.250

Appeal before ITAT

Either party aggrieved by the order of the commissioner can prefer to appeal to the Tribunal.

The appeal to the ITAT can arise on points of law or of facts or both.

The Tribunal is the fact finding authority under the Income Tax Act since no fresh facts would be considered by the higher appellate authorities.

Filing Fee - ITAT

The following rates are payable for filing the appeal before Income Tax Appellate Tribunal:

Rs.1 lakh or less - Rs.500 Rs.1 lakh but not more than 2 lakh -

Rs.1500 More than Rs.2 lakhs – 1% of the

assessed income or Rs.10000, whichever is less.

Appeals involving any other matter - Rs.500

Appeal to High Court

An appeal is filed with the HC if it is satisfied that the case involves a substantial question of law.

The time prescribed for filing such an appeal is within 120 days from the date of receipt of order.

An appeal can be filed by the commissioner or an assesse aggrieved by the Tribunal’s order.

Appeal to Supreme Court

An appeal lies with the SC from any judgement o f High Court.

The HC must certify the appeal to be fit to be presented to the SC.

The decision of 5 judges of the SC is of binding nature and must be followed regardless of doubts about its correctness.

Time Limit

Nature of Compliance Limitation of Time

Filing appeal to commissioner:(a)Relating to tax deducted at source(b)Relating to any penalty

(c) In any other case

Within 30 days from payment of taxWithin 30 days from date of service of demand noticeWithin 30 days from date of communication of order

Filing appeal to Tribunal Within 60 days from date on which order sought to be appealed against is communicated

Appeal to High court

Appeal to Supreme Court

Within 120 days on which the order appealed against is communicatedWithin 90 days of service of judgement

Revision

Is a stage after appeal

Power of revision may be exercised by the revising authority suo motu or on application

Authority decided appeal cannot revise his own order

Revision…

Authority higher than appellate authority can do

Powers cannot be exercised until the appeal is finally disposed

In case where no appeal is preferred, power for revision can be exercised after the expiry of time-limit for submission of appeal

Revision… (Competent authority)

- The President

- C & AG in case of Govt. servant serving in Indian Audit and Accounts Dept.

- Member(personnel), Postal Services Board

- Appellate authority, within six months of the date of the order proposed to be revised

- Any other authority specified in this behalf by the president by a general or special order

Revision…(Period of limitation)

Except the appellate authority, no time limit for other authorities

-Appellate authority can work as revising authority if no appeal was submitted -Can exercise the powers within six months

Revision…(Period of limitation)

Though no time limit is prescribed, powers of revision must be exercised within a reasonable time

Reasonable time determined by facts of the case and nature of the order

Orders in Revision

Personal hearing essential To enhance penalty show cause notice

specifying the penalty proposed Order must be a speaking order Order must be signed by revising

authority Orders issued in the name of the

President to be authenticated properly

Orders in Revision

Confirm, modify or set aside the order 

Confirm, reduce, enhance or set aside the penalty

Impose penalty where it is not imposed

Remit case to the authority with directions to make inquiry