The Income-Tax Act, 1961

Chapter XX

Appealsand Revision

¹[A.-Appeals2*** to the Deputy Commissioner (Appeals) and Commissioner (Appeals)

246.Appealable orders.-

(1) Subject to the provisions of sub-section (2), any assessee aggrieved by any of the following orders of an Assessing Officer (other than the Deputy Commissioner) may appeal to the Deputy Commissioner (Appeals) ³[before the 1st day of June, 2000] against such order-

(a) an order against the assessee, where the assessee denies his liability to be assessed under this Act ⁴[or an intimation under sub-section (1) or sub-section (1B) of section 143, where the assessee objects to the making of adjustments,] or any order of assessment under sub-section (3) of section 143 or section 144, where the assessee objects to the amount of income assessed, or to the amount of tax determined, or to the amount of loss computed, or to the status under which he is assessed;

(b) an order of assessment, reassessment or recomputation under section 147 or section 150;

(c) an order under section 154 or section 155 having the effect of enhancing the assessment or reducing a refund or an order refusing to allow the claim made by the assessee under either of the said sections;

(d) an order made under section 163 treating the assessee as the agent of a non-resident;

(e) an order under sub-section (2) or sub-section (3) of section 170;

(f) an order under section 171;

(g) any order under clause (b) of sub-section (1) or under sub-section (2) or sub-section (3) or sub-section (5) of section 185 5*** ⁶[in respect of any assessment for the assessment year commencing on or before the 1st day of April, 1992];

(h) an order cancelling the registration of a firm under sub-section (1) or under sub-section (2) of section 186 5*** ⁶[in respect of any assessment for the assessment year commencing on or before the 1st day of April, 1992];

(i) an order under section 201;

(j) an order under section 216 in respect of any assessment for the assessment year commencing on the 1st day of April, 1988 or any earlier assessment year;

(k) an order under section 237;

(l) an order imposing a penalty under-

(i) section 221, or

(ii) section 271, section 271A, section 271B, ¹[*** section 272A, section 272AA or section 272BB];

(iii) 2*** section 272, section 272B or section 273, as they stood immediately before the 1st day of April, 1989, in respect of any assessment for the assessment year commencing on the 1st day of April, 1988 or any earlier assessment years.

³[(1A) Notwithstanding anything contained in sub-section (1), every appeal filed, on or after the 1st day of October, 1998 but before the 1st day of June, 2000, before the Deputy Commissioner (Appeals) and any matter arising out of or connected with such appeal and which is so pending shall stand transferred to the Commissioner (Appeals) and the Commissioner (Appeals) may proceed with such appeal or matter from the stage at which it was on that day.]

(2) Notwithstanding anything contained in sub-section (1), any assessee aggrieved by any of the following orders (whether made before or after the appointed day) may appeal to the Commissioner (Appeals) ³[before the 1st day of June, 2000] against such order-

(a) ⁴[an intimation or order specified in sub-section (1) where such intimation is sent or such order] is made by the Deputy Commissioner in exercise of the powers or functions conferred on or assigned to him under section 120 or section 124;

(b) an order specified in clauses (a) to (e) (both inclusive) and clauses (i) to (l) (both inclusive) of sub-section (1) ⁵[or an order under section 104, as it stood immediately before the 1st day of April, 1988 in respect of any assessment for the assessment year commencing on the 1st day of April, 1987 or any earlier assessment year] made against the assessee, being a company;

(c) an order of assessment made after the 30th day of September, 1984, on the basis of the directions issued by the Deputy Commissioner under section 144A;

(d) an order made by the Deputy Commissioner under section 154;

⁶[(da) an order of assessment made 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, on or after the 1st day of January, 1997;

(db) an order imposing a penalty under sub-section (2) of section 158BFA;]

(e) an order imposing a penalty under section 271B ¹[or section 271BB];

²[(ee) an order made by a Deputy Commissioner imposing a penalty under section 271C, section 271D or section 271E;]

(f) an order made by a Deputy Commissioner or a Deputy Director imposing a penalty under section 272A;

³[(ff) an order made by a Deputy Commissioner imposing a penalty under section 272AA;]

⁴[(g) an order imposing a penalty under Chapter XXI by the Income-tax Officer or the Assistant Commissioner where such penalty has been imposed with the previous approval of the Deputy Commissioner under sub-section (2) of section 274;]

(h) an order made by an Assessing Officer (other than Deputy Commissioner) under the provisions of this Act in the case of such person or classes of persons as the Board may, having regard to the nature of the cases, the complexities involved and other relevant considerations, direct.

(3) Notwithstanding anything contained in sub-section (1), the Board or the ⁵[Principal Director General or Director General], or the ⁶[Principal Chief Commissioner or Chief Commissioner] or ⁷[Principal Commissioner or Commissioner] if so authorised by the Board, may, by order in writing, transfer any appeal which is pending before a Deputy Commissioner (Appeals) and any matter arising out of or connected with such appeal and which is so pending, to the Commissioner (Appeals) if the Board or, as the case may be, the ⁵[Principal Director General or Director General] or ⁶[Principal Chief Commissioner or Chief Commissioner] or ⁷[Principal Commissioner or Commissioner] (at the request of the appellant or otherwise) is satisfied that it is necessary or expedient so to do having regard to the nature of the case, the complexities involved and other relevant considerations and the Commissioner (Appeals) may proceed with such appeal or matter, from the stage at which it was before it was so transferred: Provided that the appellant may demand that before proceeding further with the appeal or matter, the previous proceeding or any part thereof be re-opened or that he be reheard.

Explanation.-For the purposes of this section,-

(a) "appointed day" means the 10th day of July, 1978, being the day appointed under section 39 of the Finance (No. 2) Act, 1977 (29 of 1977);

(b) "status" means the category under which the assessee is assessed as "individual", "Hindu undivided family" and so on.]

1. Subs. by Act 4 of 1988, s. 99, for the Sub-heading and section 246 (w.e.f. 1-4-1989).

2. The words "or applications" omitted by Act 3 of 1989, s. 42 (w.e.f. 1-4-1989).

3. Ins. by Act 10 of 2000, s. 65 (w.e.f. 1-6-2000).

4. Ins. by Act 32 of 1994, s. 46 (w.e.f. 1-6-1994).

5. The words, figures and letters "in respect of any assessment for the assessment year commencing on the 1st day of April, 1988 or any earlier assessment year" omitted by Act 3 of 1989, s. 43 (w.e.f. 1-4-1989).

6. Ins. by Act 18 of 1992, s. 83 (w.e.f. 1-4-1993).

1. The words, figures and letters "section 271C, section 271D, section 271E,"omitted by Act 12 of 1990, s. 41 (w.e.f. 1-4-1990).

Earlier "Section 271E, Section 272A, Section 272AA or Section 272BB" were substituted for "Section 271E or Section 272A" by Act 3 of 1989, s. 43 (w.e.f. 1-4-1989).

2. The words, brackets and figures "sub-section (1) of section 271," omitted by Act 3 of 1989, s. 43 (w.e.f. 1-4-1989).

3. Ins. by Act 10 of 2000, s. 65 (w.e.f. 1-6-2000).

4. Subs. by Act 32 of 1994, s. 46, for "an order specified in sub-section (1) where such order" (w.e.f. 1-6-1994).

5. Ins. by Act 3 of 1989, s. 43 (w.e.f. 1-4-1989).

6. Ins. by Act 14 of 1997, s. 8 (w.e.f. 1-1-1997).

1. Ins. by Act 12 of 1990, s. 50 (w.e.f. 1-4-1990).

2. Ins. by s. 41, ibid. (w.e.f. 1-4-1990).

3. Ins. by Act 3 of 1989, s. 43 (w.e.f. 1-4-1989).

4. Subs. by s. 43, ibid., for clause (g) (w.e.f. 1-4-1989).

5. Subs. by Act 25 of 2014, s. 4, for "Director General" (w.e.f. 1-6-2013).

6. Subs. by s. 4, ibid., for "Chief Commissioner" (w.e.f. 1-6-2013).

7. Subs. by s. 4, ibid., for "Commissioner" (w.e.f. 1-6-2013).

¹[246A. Appealable orders before Commissioner (Appeals).-

(1) ²[Any assessee or any deductor ³[or any collector] aggrieved] by any of the following orders (whether made before or after the appointed day) may appeal to the Commissioner (Appeals) against-

(a) ⁴[an order passed by a Joint Commissioner under clause (ii) of sub-section (3) of section 115VP or an order against the assessee] where the assessee denies his liability to be assessed under this Act or an intimation under sub-section (1) or sub-section (1B) of ⁵[section 143 or ⁶[sub-section (1) of section 200A or sub-section (1) of section 206CB, where the assessee or the deductor or the collector] objects] to the making of adjustments, or any order of assessment under sub-section (3) of section 143 ⁷[except an order passed in pursuance of directions of the Dispute Resolution Panel 8*** ⁹[or an order referred to in sub-section (12) of section 144BA]] or section 144, to the income assessed, or to the amount of tax determined, or to the amount of loss computed, or to the status under which he is assessed;

¹⁰[(aa) an order of assessment under sub-section (3) of section 115WE or section 115WF, where the assessee, being an employer objects to the value of fringe benefits assessed;

(ab) an order of assessment or reassessment under section 115WG;

(b) an order of assessment, reassessment or recomputation under section 147 ⁷[except anorder passed in pursuance of directions of the Dispute Resolution Panel 8*** ⁹[or an order referred to in sub-section (12) of section 144BA]] or section 150;

1¹[(ba) an order of assessment or reassessment 1²[under section 153A ⁷[except an order passed in pursuance of directions of the 1³[Dispute Resolution Panel]] 8*** ⁹[or an order referred to in subsection (12) ofsection 144BA];]

1⁴[(bb) an order of assessment or reassessment under sub-section (3) of section 92CD;]

(c) an order made under section 154 or section 155 having the effect of enhancing the assessment or reducing a refund or an order refusing to allow the claim made by the assessee under either of the said sections 15*** ⁹[except an order referred to in sub-section (12) of section 144BA];

(d) an order made under section 163 treating the assessee as the agent of a non-resident;

(e) an order made under sub-section (2) or sub-section (3) of section 170;

(f) an order made under section 171;

(g) an order made under clause (b) of sub-section (1) or under sub-section (2) or sub-section (3) or sub-section (5) of section 185 in respect of an assessment for the assessment year commencing on or before the 1st day of April, 1992;

(h) an order cancelling the registration of a firm under sub-section (1) or under sub-section (2) of section 186 in respect of any assessment for the assessment year commencing on or before the 1st day of April, 1992 or any earlier assessment year;

¹[(ha) an order made under section 201;]

²[(hb) an order made under sub-section (6A) of section 206C;]

(i) an order made under section 237;

(j) an order imposing a penalty under-

(A) section 221; or

(B) section 271, section 271A, ²[section 271AAA,] ³[section 271AAB,] ⁴[section 271F, section 271FB,] section 272AA or section 272BB;

(C) section 272, section 272B or section 273, as they stood immediately before the 1st day of April, 1989, in respect of an assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment years;

⁵[(ja) an order of imposing or enhancing penalty under sub-section (1A) of section 275;]

(k) an order of assessment made 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 on or after the 1st day of January, 1997;

(l) an order imposing a penalty under sub-section (2) of section 158BFA;

(m) an order imposing a penalty under section 271B or section 271BB;

(n) an order made by a Deputy Commissioner imposing a penalty under ⁶[section 271C, section 271CA,] section 271D or section 271E;

(o) an order made by a Deputy Commissioner or a Deputy Director imposing a penalty under section 272A;

(p) an order made by a Deputy Commissioner imposing a penalty under section 272AA;

(q) an order imposing a penalty under Chapter XXI;

(r) an order made by an Assessing Officer other than a Deputy Commissioner under the provisions of this Act in the case of such person or class of persons, as the Board may, having regard to the nature of the cases, the complexities involved and other relevant considerations, direct.

Explanation.-For the purposes of this sub-section, where on or after the 1st day of October, 1998, the post of Deputy Commissioner has been redesignated as Joint Commissioner and the post of Deputy Director has been redesignated as Joint Director, the references in this sub-section for "Deputy Commissioner" and "Deputy Director" shall be substituted by "Joint Commissioner" and "Joint Director" respectively.

¹[(1A) Every appeal filed by an assessee in default against an order under section 201 on or after the 1st day of October, 1998 but before the 1st day of June, 2000 shall be deemed to have been filed under this section.]

²[(1B) Every appeal filed by an assessee in default against an order under sub-section (6A) of section 206C on or after the 1st day of April, 2007 but before the 1st day of June, 2007 shall be deemed to have been filed under this section.]

(2) Notwithstanding anything contained in sub-section (1) of section 246, every appeal under this Act which is pending immediately before the appointed day, before the Deputy Commissioner (Appeals) and any matter arising out of or connected with such appeals and which is so pending shall stand transferred on that date to the Commissioner (Appeals) and the Commissioner (Appeals) may proceed with such appeal or matter from the stage at which it was on that day:

Provided that the appellant may demand that before proceeding further with the appeal or matter, the previous proceeding or any part thereof be reopened or that he be re-heard.

Explanation.-For the purposes of this section, "appointed day" means the day appointed by the Central Government by notification in the Official Gazette.]

1. Ins. by Act 21 of 1998, s. 49 (w.e.f. 1-10-1998).

2. Subs. by Act 23 of 2012, s. 94, for "Any assessee aggrieved" (w.e.f. 1-7-2012).

3. Ins. by Act 20 of 2015, s. 64, (w.e.f. 1-6-2015).

4. Subs. by Act 23 of 2004, s. 53, for "an order against the assessee" (w.e.f. 1-10-2004).

5. Subs. by Act 23 of 2012, s. 94, for "section 143, where the assessee objects" (w.e.f. 1-7-2012).

6. Subs. by Act 20 of 2015, s. 64, for "sub-section (1) of section 200A, where the assessee or the deductor" (w.e.f. 1-6-2015).

7. Subs. by Act 23 of 2012, s. 94, for "except an order passed in pursuance of directions of the Dispute Resolution Panel" (w.e.f. 1-4-2013).

8. The words, brackets, figures and letters "or an order referred to in sub-section (12) of section 144BA" omitted by Act 17 of 2013, s. 55 (w.e.f. 1-4-2013).

9. Ins. by s. 55, ibid. (w.e.f. 1-4-2016).

10. Ins. by Act 18 of 2005, s. 57 (w.e.f. 1-4-2006).

11. Ins. by Act 32 of 2003, s. 93 (w.e.f. 1-6-2003).

12. Subs. by Act 23 of 2012, s. 94, for "under section 153A" (w.r.e.f. 1-10-2009).

13. Subs. by s. 94, ibid., for "Dispute Resolution Panel" (w.e.f. 1-4-2013).

14. Ins. by s. 94, ibid. (w.e.f. 1-7-2012).

15. The words, brackets, figures and letters "except where it is in respect of an order as referred to in sub-section (12) of section 144BA" omitted by Act 17 of 2013, s. 55 (w.e.f. 1-4-2013).

1. Ins. by Act 10 of 2000, s. 66 (w.e.f. 1-6-2000).

2. Ins. by Act 22 of 2007, s. 71 (w.e.f. 1-6-2007).

3. Ins. by Act 23 of 2012, s. 94 (w.e.f. 1-7-2012).

4. Subs. by Act 18 of 2005, s. 57, for "Section 271F" (w.e.f. 1-4-2006).

5. Ins. by Act 29 of 2006, s. 17 (w.e.f. 13-7-2006).

6. Subs. by Act 21 of 2006, s. 51, for "section 271C" (w.e.f. 1-4-2007).

1. Ins. by Act 10 of 2000, s. 66 (w.e.f. 1-6-2000).

2. Ins. by Act 22 of 2007, s. 71 (w.e.f. 1-6-2007).

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