All-about the E-Appeals Scheme 2023 | JCIT (Appeals)

Table of Contents

1. Memorandum Explaining the Provisions in the Finance Bill, 2023 – Relevant Extract
2. Section 246 – Appealable orders before Joint Commissioner (Appeals)
3. E-Appeals Scheme, 2023 dated 29.05.2023
4. Scope of the e-Appeals Scheme – Order under sub-section (6) of section 246 of the Income Tax Act, 1961 dated 16.06.2023
5. Income Tax (Sixth Amendment) Rules, 2023 vide CBDT Notification dated 29.05.2023
6. Appointment of JCIT (Appeals) – List
7. Form 35 (Amended)

1. Memorandum Explaining the Provisions in the Finance Bill, 2023 – Relevant Extract

1.1 Introduction of the authority of Joint Commissioner (Appeals)

• The first authority for appeal, Commissioner (Appeals) are currently over burdened due to the huge number of appeals and the pendency being carried forward every year.
• In order to clear this bottleneck, a new authority for appeals is being proposed to be created at Joint Commissioner/ Additional Commissioner level to handle certain class of cases involving small amount of disputed demand.
• Such authority has all powers, responsibilities and accountability similar to that of Commissioner (Appeals) with respect to the procedure for disposal of appeals.
• The earlier section 246 was providing for the appeal functions of Deputy Commissioner (Appeals). That institution was discontinued in the year 2000.
• Accordingly, it is proposed to substitute section 246 of the Act to provide for appeals to be filed before Joint Commissioner (Appeals)

2. Section 246 – Appealable orders before Joint Commissioner (Appeals)

1. Sec 246 (1) – Any assessee aggrieved by any of the following orders of an Assessing Officer (below the rank of Joint Commissioner) may appeal to the Joint Commissioner (Appeals) against

(a) an order being an intimation under sub-section (1) 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;

• • Section 147: Income escaping assessment

(c) an order being an intimation under sub-section (1) of section 200A;

• • Section 200A: Processing of statements of tax deducted at source.

(d) an order under section 201;

• • Section 201: Consequences of failure to deduct or pay.

(e) an order being an intimation under sub-section (6A) of section 206C;

• • Section 206C(6A): Failure to collect or deposit TCS

(f) an order under sub-section (1) of section 206CB;

• • Section 206CB: Processing of statements of tax collected at source.

(g) an order imposing a penalty under Chapter XXI; and

• • CHAPTER XXI – Penalties Imposable

(f) an order under section 154 or section 155 amending any of the orders mentioned in clauses (a) to (g)

• • Clauses (a) to (g) of Sec 246 (1)
    Section 154: Rectification of mistake
    Section 155:Amendment to assessments consequent to assessment or re-assessment of connected entities

Provided that no appeal shall be filed before the Joint Commissioner (Appeals) if an order referred to in this sub-section is passed by or with the prior approval of, an income-tax authority above the rank of Deputy Commissioner.

2. Sec 246(2) – Where any appeal filed against an order referred to in sub-section (1) is pending before the Commissioner (Appeals), the Board or an income-tax authority so authorised by the Board in this regard, may transfer such appeal and any matter arising out of or connected with such appeal and which is so pending, to the Joint Commissioner (Appeals) who may proceed with such appeal or matter, from the stage at which it was before, it was so transferred.

3. Sec 246(3) – Notwithstanding anything contained in subsection (1) and sub-section (2), the Board or an income tax authority so authorised by the Board in this regard, may transfer any appeal which is pending before a Joint Commissioner (Appeals) and any matter arising out of or connected with such appeal and which is so pending, to the Commissioner (Appeals) who may proceed with such appeal or matter, from the stage at which it was before, it was so transferred.

4. Sec 246(4) – Where an appeal is transferred under the provisions of sub-section (2) or sub-section (3), the appellant shall be given an opportunity of being reheard.

5. Sec 246(5) – For the purposes of disposal of appeal by the Joint Commissioner (Appeals), the Central Government may make a scheme, by notification in the Official Gazette, so as to dispose of appeals in an expedient manner with transparency and accountability, by eliminating the interface between the Joint Commissioner (Appeals) and the appellant, in the course of appellate proceedings to the extent technologically feasible and direct that any of the provisions of this Act relating to jurisdiction and procedure for disposal of appeals by the Joint Commissioner (Appeals), shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in the notification.

6. Sec 246(6) – For the purposes of sub-section (1), the Board may specify that the provisions of that sub-section shall not apply to any case or any class of cases.

Explanation—For the purposes of this section, “status” means the category under which the assessee is assessed as “individual”,”Hindu undivided family”, and so on.

Difference Between Faceless Appeals Scheme and E-appeals Scheme

Direct e-communication among appellant, Joint commissioner of Income-tax (Appeals), Assessing Officer and other income tax authorities, not through Faceless Appeal Centre.

3. E-Appeals Scheme, 2023 dated 29.05.2023

Notification S.O 2352(E) [No. 33/2023/F. No.370142/10/2023-TPL]

3.1 Short title and Commencement

(1) This Scheme may be called the E- Appeals Scheme, 2023.

(2) It shall come into force on the date of its publication in the Official Gazette.

3.2 Definitions

In this Scheme, unless the context otherwise requires,

(i) “Act” means the Income-tax Act, 1961(43 of 1961);

(ii) “addressee” shall have the same meaning as assigned to it in clause (b) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000);

(iii) “appeal” means appeal filed by a person under sub-section (1) of section 246 or section 246A of the Act.

(iv) “appellant” means the person who files appeal under section 246 or under section 246A of the Act.

(v) “authorised representative” shall have the same meaning as assigned to in sub-section (2) of section 288 of the Act.

(vi) “automated allocation system” means an algorithm for randomised allocation of cases, by using suitable technological tools, including artificial intelligence and machine learning, with a view to optimise the use of resources.

(vii) “computer system” shall have the same meaning assigned to it in clause (I) of sub-section (l) of section 2 of the Information Technology Act 2000 (21 of 2000)

(viii) “computer resource of appellant” shall include the registered account in the designated portal of the Income-tax Department, or the Mobile App linked to the registered mobile number or the registered email account of the appellant;

(ix) “digital signature” shall have the same meaning as assigned to it in clause (p) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000);

(x) “designated portal” means the web portal designated as such by the Principal Chief Commissioner of Income-tax or the Principal Director General or the Director General of Income-tax, (Systems);

(xi) “e-appeal” means the appellate proceedings conducted electronically in ‘e-appeal’ facility through the registered account of the appellant in the designated portal;

(xii) “electronic record” shall have the same meaning as assigned to it in clause (t) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000).

(xiii) “e-mail” or “electronic mail” and “electronic mail message” means a message or information created or transmitted or received on a computer, computer system, computer resource or communication device including attachments in text, image, audio, video and any other electronic record, which may be transmitted with the message;

(xiv) “Mobile app” shall mean the application software of the Income-tax Department developed for mobile devices which is downloaded and installed on the registered mobile number of the appellant;

(xv) “National Faceless Appeal Centre” shall mean the National Faceless Appeal Centre as set up and notified under the Faceless Appeal Scheme, 2021;

(xvi) “real time alert” means any communication sent to the appellant, by the way of Short Messaging Service on his registered mobile number, or by the way of update on his Mobile App, or by way of an e-mail at his registered e-mail address, so as to alert him regarding delivery of an electronic communication.

(xvii) “registered account” of the appellant means the electronic filing account registered by the appellant in the designated portal;

(xviii) “registered e-mail address” means the e-mail address at which an electronic communication may be delivered or transmitted to the addressee, including-

(a) The e-mail address available in the electronic filing account of the addressee registered in the designated portal; or

(b) The e-mail address available in the last income-tax return furnished by the addressee; or

(c) The e-mail address available in the permanent account number database relating to the addressee; or

(d) In the case of addressee being an individual who possesses the Aadhaar number, the e-mail address of the addressee available in the database of Unique Identification Authority of India; or

(e) In the case of addressee being a company, the e-mail address of the company as available on the official website of the Ministry of Corporate Affairs; or

(f) Any e-mail address made available by the addressee to the income-tax authority or any person authorised by such authority;

(xix) “registered mobile number” means the mobile number of the appellant, or his authorised representative, appearing in the user profile of the electronic filing account registered by the appellant in the designated portal;

(xx) “Rules” means the Income-tax Rules, 1962; and

(xxi) “video conferencing or video telephony” means the technological solutions for the reception and transmission of audio-video signals by users at different locations, for communication between people in real-time.

Words and expressions used herein and not defined but defined in the Act shall have the same meaning respectively as assigned to them in the Act.

3.3 Scope of the Scheme

The Scheme shall apply to appeals, in respect of such persons or class of persons, incomes or class of incomes, cases or class of cases, as covered under section 246 of the Act except the cases excluded under sub-section (6) of that section.

(Section 246(6): For the purposes of sub-section (1), the Board may specify that the provisions of that sub-section shall not apply to any case or any class of cases)

3.4 Appeal Authority under the Scheme

The Joint commissioner (Appeals) [hereinafter referred to as JCIT (Appeals)], shall dispose of the appeals filed before it or allocated or transferred to it, in accordance with the provisions of this scheme.

The JCIT (Appeals) shall have such income- tax authority, ministerial staff, executive or consultant to assist in the disposal of appeals, as may be considered necessary by the Board.

3.5 Allocation of Appeals

The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall, with the approval of Central Board of Direct Taxes, devise a process to randomly allocate or transfer the appeals, referred to in paragraph 3, to the JCIT (Appeals).

3.6 Procedure in Appeal

The appeal referred to in paragraph 3 shall be disposed of by the JCIT (Appeals) under this scheme as per the following procedure, namely:-

(I) On assignment of an appeal, the JCIT (Appeals),

(a) may condone the delay of filing appeal if the appeal is filed beyond the time permitted under section 249 of the Act and record the reasons for such condonation or otherwise in the appeal order passed under clause (IX);

(b) shall give notice to the appellant asking him to file his submission within the date and time specified in such notice and also send a copy of such notice to the Assessing Officer;

(c) may obtain further information, document or evidence from the appellant or any other person;

(d) may obtain a report of the Assessing Officer on grounds of appeal or information, document or evidence furnished by the appellant.

(e) may request the Assessing Officer for making further inquiry under sub-section (4) of section 250 of the Act and submit a report thereof; Remand Report

(f) shall serve a notice upon the appellant or any other person, or the Assessing Officer to submit information, document or evidence or report, as the case may be, as may be specified by it or relevant to the appellate proceedings, on a specified date and time;

(II) the appellant or any other person, as the case may be, shall furnish response as required in “sub-clause (b), (c) or (f) of the clause (I)”, within the date and time specified therein, or extended date and time as may be allowed on basis of an application made in this behalf, to the JCIT (Appeals).

(III) the Assessing Officer shall furnish report as required under sub-clause (d), (e) or (f) of clause (I), within the date and time specified therein or such extended date and time as may be allowed on the basis of an application made in this behalf, to the JCIT (Appeals);

(IV) the appellant may file additional grounds of appeal to the JCIT (Appeals), in such form, as may be specified, specifying therein the reason for omission of such grounds in the appeal filed by him;

(V) where the additional ground of appeal is filed,-

(a) the JCIT (Appeals) shall admit such additional grounds in case of orders passed under sub- section (1) of section 143 of the Act or under section 200A of the Act or in any other case where the appealable order is an order passed by the Central Processing Centre;

(b) in any other case, the JCIT (Appeals) shall send the additional ground to the Assessing Officer for providing comments if any;

(c) the Assessing Officer shall furnish their comments, within the date and time specified or such extended date and time as may be allowed on basis of an application made in this behalf, to the JCIT (Appeals);

(d) the JCIT (Appeals) shall, after taking into consideration the comments, if any, received from the Assessing Officer,-

(A) if he is satisfied that the omission of such additional ground from the memorandum of appeal was not willful or there was sufficient cause, admit the additional ground; or

(B) in any other case, for reasons to be recorded in writing in the appeal order passed under clause (IX) not admit the additional ground;

(VI) the Appellant may furnish additional evidence, other than the evidence produced by him during the course of proceedings before the Assessing Officer, to the JCIT (Appeals), in such form, as may be specified, specifying therein as to how his case is covered by the exceptional circumstances specified in sub-rule (1) of rule 46A of the Rules;

(VII) where the additional evidence is furnished,-

(a) the JCIT (Appeals) shall admit such additional evidence in case of orders passed under sub- section (1) of section 143 of the Act or under section 200A of the Act or any such case where the appealable order is an order passed by the Central Processing Centre;

(b) in any other case, the JCIT (Appeals) shall send the additional evidence to the Assessing Officer for furnishing a report on the admissibility of additional evidence in accordance with rule 46A of the Rules;

(c) the Assessing Officer shall furnish the report, as referred to in sub-clause (b), within such date and time specified or such extended date and time as may be allowed on the basis of an application made in this behalf, to the JCIT (Appeals);

(d) the JCIT (Appeals) may, after considering the additional evidence and the report, if any, furnished by the Assessing Officer admit or reject the additional evidence, for reasons to be recorded in writing, and the same shall form a part of the appeal order passed under clause (IX);

(e) the JCIT (Appeals) shall, if he admits such evidence, before taking such evidence into account in the appellate proceedings, prepare a notice to provide an opportunity to the Assessing Officer to examine such evidence or to cross-examine such witness, as may be produced by the appellant, or to produce any evidence or document, or any witness in rebuttal of the evidence or witness produced by the appellant, and furnish a report thereof and send such notice to the Assessing Officer;

(f) the Assessing Officer shall furnish the report within the date and time specified or such extended date and time as may be allowed on the basis of an application made on his behalf, to the JCIT (Appeals);

(g) the Assessing Officer may request the JCIT (Appeals) to direct the production of any document or evidence by the appellant, or the examination of any witness, as may be relevant to the appellate proceedings;

(h) the JCIT (Appeals) for the purpose of making enquiries in the appeal proceedings to in sub-clause (c) or (e) of clause (I) or where the request referred to in sub-clause (g) is received, may, if it deems fit, send a notice-

(A) Directing the appellant to produce such document or evidence, as it may specify; or

(B) for examination of any other person, being a witness;

(i) the appellant or any other person, as the case may be, shall furnish his response to the notice referred to in sub-clause (h), within the date and time specified in the notice or such extended date and time as may be allowed on the basis of application made in this behalf, to the JCIT (Appeals);

(VIII) where the JCIT (Appeals) intends to enhance an assessment or a penalty or reduce the amount of refund.-

(a) The JCIT (Appeals) shall prepare a show-cause notice containing the reasons for such enhancement or reduction, as the case may be, and shall, serve the notice upon the appellant;

(b) The appellant shall, within the date and time specified in the notice or such extended date and time as may be allowed on the basis of application made on his behalf, furnish his response to the JCIT (Appeals).

(IX) The JCIT (Appeals) shall, thereafter.-

(a) prepare in writing an appeal order in accordance with the provisions of section 251 of the Act stating the points for determination, the decision thereon and the reason for the decision; and

(b) send such order after signing the same digitally to the appellant along with the details of the penalty proceedings, if any, to be initiated therein;

(c) communicate such order to the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner in the line with sub- section (7) of section 250 of the Act;

(d) communicate such order to the Assessing Officer for such action as may be required under the Act;

(e) where initiation of penalty has been recommended in the order, serve a notice upon the appellant calling upon him to show cause as to why penalty should not be imposed upon him under the relevant provisions of the Act.

(2) Notwithstanding anything contained in sub- paragraph (1), the appeal may be transferred at any stage of the appellate proceedings, if considered necessary, by an order in accordance with section 120 of the Act, to such JCIT (Appeals) as may be specified in the order.

3.7 Penalty Proceedings

1. The JCIT (Appeals) may, in the course of appeal proceedings, for non-compliance of any notice, direction or order issued under this Scheme on the part of the appellant or any other person, as the case may be, send a notice to the appellant or any other person for initiation of any penalty proceedings calling upon them to show cause as to why penalty should not be imposed upon him under the relevant provisions of the Act.
2. The appellant or any other person, as the case may be, shall furnish a response to the show-cause notice referred to in sub-paragraph (1) of this paragraph or in sub-clause (e) of the clause (IX) of sub-paragraph (1) of paragraph 6, within the date and time specified in such notice or such extended date and time as may be allowed on the basis of application made in this behalf, to the JCIT (Appeals).
3. The JCIT (Appeals) shall, after taking into account all the relevant material available on the record, including the response furnished, if any, by the appellant or any other person, as the case may be,-
   • prepare a penalty order and serve a copy of such order after digitally signing the same; or
   • for reasons to be recorded in writing, drop the penalty and send an intimation thereof, to the appellant or any other person, as the case may be, and the Assessing Officer, for such action as may be required under the Act.

3.8 Rectification Proceedings

1. With a view to rectifying any mistake apparent from the record the JCIT (Appeals) may amend any order passed by it in accordance with the provisions of the Act, by an order to be passed in writing.
2. Subject to the other provisions of this Scheme, an application for rectification of mistake referred to in sub-paragraph (1) may be filed with the JCIT (Appeals) by,–
   • the appellant or any other person, as the case may be; or
   • the Assessing Officer.
3. The JCIT (Appeals) shall examine the application and send the notice for granting an opportunity to,–
   • the appellant or any other person, as the case may be, where the application has been filed by the Assessing Officer; or
   • the Assessing Officer where the application has been filed by the appellant or any other person, as the case may be, calling upon them to show cause as to why rectification of mistake should not be carried out under the relevant provisions of the Act.
4. The appellant or any other person, as the case may be, or the Assessing Officer shall furnish a response to the notice, as referred to in sub- paragraph (3), within the date and time specified therein, or such extended date and time as may be allowed on the basis of an application made in this behalf.
5. The JCIT (Appeals) shall, after taking into consideration the application and response, if any, furnished by the appellant or any other person, as the case may be, or the Assessing Officer by an order in writing, —
   • rectify the mistakes; or
   • for reasons to be recorded in writing, reject the application for rectification.
6. The JCIT (Appeals) shall send the order after digitally signing it to,–
   • the appellant or any other person, as the case may be; and
   • the Assessing Officer for such action as may be required under the relevant provisions of the Act.

3.9 Appellate Proceedings

1. An appeal against an order passed by the JCIT (Appeals) under this Scheme shall lie before the Income Tax Appellate Tribunal having jurisdiction over the jurisdictional Assessing Officer of the appellant assessee.
2. Subject to the provisions of paragraph 3 of the Scheme, where any order passed by the JCIT (Appeals) is set-aside and remanded back to the JCIT (Appeals) by the Income Tax Appellate Tribunal or High Court or Supreme Court, the order shall be assigned to a JCIT (Appeals) for further action in accordance with the provisions of this Scheme.

3.10 Exchange of communication by electronic mode

For the purposes of this Scheme,—

• all communications between the JCIT (Appeals) and the appellant, or his authorised representative, shall be exchanged by electronic mode, to the extent technologically feasible; and
• all internal communications between the JCIT (Appeals), the Assessing Officer and the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, as the case may be, shall be exchanged by electronic mode.

3.11 Authentication of electronic record

For the purposes of this Scheme, an electronic record shall be authenticated by,–

• the JCIT (Appeals), in case of order passed under clause (IX) of sub-paragraph (1) of paragraph 6 or under sub-paragraph (3) of paragraph 7 or under sub-paragraph (5) of paragraph 8, by affixing his digital signature;
• the appellant or any other person, by affixing his digital signature or under electronic verification code or by logging into his registered account in the designated portal;

Explanation – For the purposes of this paragraph, “electronic verification code” shall have the same meaning as referred to in sub-rule (3) of rule 12 of the Rules.

3.12 Delivery of Electronic record

1. Every notice or order or any other electronic communication under this Scheme shall be delivered to the addressee, being the appellant, by way of–
   • placing an authenticated copy thereof in the appellant’s registered account; or
   • sending an authenticated copy thereof to the registered e-mail address of the appellant or his authorised representative; or
   • uploading an authenticated copy on the Mobile App of the appellant followed by a real time alert.
2. Every notice or order or any other electronic communication under this Scheme shall be delivered to the addressee, being any other person, by sending an authenticated copy thereof to the registered e-mail address of such person followed by a real time alert.
3. The appellant shall furnish his response to any notice or order or any other electronic communication, under this Scheme, through his registered account, and once an acknowledgement is sent upon successful submission of response, the response shall be deemed to be authenticated.
4. The time and place of dispatch and receipt of electronic record shall be determined in accordance with the provisions of section 13 of the Information Technology Act, 2000 (21 of 2000).

3.13 No Personal appearance under the Scheme

1. A person shall not be required to appear either personally or through authorised representative in connection with any proceedings under this Scheme.
2. The appellant or his authorised representative, as the case may be, may request for personal hearing so as to make his oral submissions or present his case before the JCIT (Appeals) and the concerned JCIT (Appeals) shall allow the request for personal hearing and communicate the date and time of hearing to the appellant.
3. Such hearing shall be conducted through video conferencing or video telephony, including use of any telecommunication application software which supports video conferencing or video telephony, to the extent technologically feasible, in accordance with the procedure laid down by the Board.
4. Any examination or recording of the statement of the appellant or any other person shall be conducted by the JCIT (Appeals) under this Scheme, exclusively through video conferencing or video telephony, including use of any telecommunication application software which supports video conferencing or video telephony, to the extent technologically feasible, in accordance with the procedure laid down by the Board.
5. The Board shall establish suitable facilities for video conferencing or video telephony including telecommunication application software which supports video conferencing or video telephony at such locations as may be necessary, so as to ensure that the appellant, or his authorised representative, or any other person is not denied the benefit of this Scheme merely on the ground that such appellant or his authorised representative, or any other person does not have access to video conferencing or video telephony at his end.

3.14 Functions of the Principal Chief Commissioner of Income-tax National Faceless Appeal Centre

The Principal Chief Commissioner of Income-tax (National Faceless Appeal Centre), with the prior approval of Board, for the effective functioning of the Office of the JCIT (Appeals) set-up under this Scheme, shall perform the following functions, namely:

• transfer in and transfer out of cases from e-appeal Scheme;
• transfer of cases from one JCIT(Appeals) to another;
• co-ordinate with the Principal Director General or Director General of Income tax (Systems) for devising processes for allocation of appeals, if required;
• approval of Formats of notices or letter;
• issuing Standard Operating Procedures for various processes and for conducting Video Conference; and
• any other procedural function assigned by the Board from time to time.

3.15 Power to specify format, mode, procedure and processes

(15) The Principal Director General or the Director General of Income-tax (Systems) shall, in consultation with the Principal Chief Commissioner of Income-tax National Faceless Appeal Centre, if required, lay down the standards, procedures and processes for effective functioning of the Office of the JCIT (Appeals) set-up under this Scheme, in an automated and mechanised environment, including format, mode, procedure and processes with the prior approval of the Board, in respect of the following, namely:

• service of the notice, order or any other communication;
• receipt of any information or documents from the person in response to the notice, order or any other communication;
• issue of acknowledgment of the response furnished by the person;
• provision of “e-appeal” facility including login account facility, tracking status of appeal, display of relevant details, and facility of download;
• accessing, verification and authentication of information and response including documents submitted during the appellate proceedings;
• receipt, storage and retrieval of information or documents in a centralised manner; and
• any other function assigned by the Board from time to time.

3.16 Application of Provisions of the Act

Save as otherwise provided in this Scheme, the provisions of clause (28CA) of section 2, section 120, section 129, section 131, section 133, section 134, section 136, section 140, section 154, section 155, section 282, section 282A, section 283, section 284, Chapter XX and Chapter XXI, and other provisions of the Act, shall apply to the procedure in disposal of appeal by the JCIT (Appeals) under this Scheme.

Sec 2(28CA) – “Joint Commissioner (Appeals)” Sec 120 – Jurisdiction of income-tax authorities

Sec 129 – Change of incumbent of an office.

Sec 131 – Power regarding discovery, production of evidence, etc.

Sec 133 –Power to call for information.

Sec 134 – Power to inspect registers of companies.

Sec 136 – Proceedings before income-tax authorities to be judicial proceedings.

Sec 140 – Return by whom to be verified.

Sec 154 – Rectification of mistake.

Sec 155 – Amendment to assessments consequent to assessment or re-assessment of connected entities

Sec 282 – Service of notice generally.

Sec 282A – Authentication of notices and other documents.

Sec 283 – Service of notice when family is disrupted or firm, etc., is dissolved.

Sec 284 – Service of notice in the case of discontinued business.

Chapter XX – Appeals and Revision

Chapter XXI – Penalties Imposable

4. Scope of the e-Appeals Scheme – Order under sub-section (6) of section 246 of the Income Tax Act, 1961 dated 16.06.2023

4.1 Included in JCIT (A)

In Pursuance of the sub-section (6) of section 246 of the Income-tax Act,1961 (hereinafter referred to as “the Act”), read with sub-section (1) of section 246 of the Act, the Central Board of Direct Taxes (CBDT) hereby specifies that all the appeals under section 246 and/or under clause (a), clause (b), clause (c), clause (ha), clause (hb), clause (q) of sub-section(1) of section 246A of the Act shall be completed under the e-Appeals Scheme,2023 notified under sub-section (5) of section 246 of the Act, except the following:-

• Section 246(6): For the purposes of sub-section (1), the Board may specify that the provisions of that sub-section shall not apply to any case or any class of cases

4.1.1 Sec 246 – Appealable orders before Joint Commissioner (Appeals)

Any assessee aggrieved by any of the following orders of an Assessing Officer (below the rank of Joint Commissioner) may appeal to the Joint Commissioner (Appeals) against—

(a) an order being an intimation under sub-section (1) 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;

(c) an order being an intimation under sub-section (1) of section 200A;

(d) an order under section 201;

(e) an order being an intimation under sub-section (6A) of section 206C;

(f) an order under sub-section (1) of section 206CB;

(g) an order imposing a penalty under Chapter XXI; and

(h) an order under section 154 or section 155 amending any of the orders mentioned in clauses (a) to (g)

4.1.2 Section 246A – Appealable Orders Before Commissioner (Appeals)

Any assessee or any deductor 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) 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 section 143 or 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 [except an order passed in pursuance of directions of the Dispute Resolution Panel 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;

Section 115VP – Method and time of opting for tonnage tax scheme.

Section 143 (1) – Intimation – processing of returns

Section 143(1B) –Power of Central Government – Scheme for processing of
returns

Section 200A – Processing of statements of tax deducted at source.

Section 206CB – Processing of statements of tax collected at source.

Section 143(3) – Scrutiny Assessment Order

Section 144BA(12) – Orders passed with the prior approval of Principal Commissioner or Commissioner

Section 144 – Best Judgment Assessment

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

Section 147: Income escaping assessment

Section 144BA(12): Orders passed with the prior approval of Principal
Commissioner or Commissioner

Section 150: Cases where assessment is in pursuance of an order on
appeal, revision etc.

(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 except an order referred to in sub-section (12) of section 144BA;

Section 154: Rectification of mistake

Section 155: Amendment to assessments consequent to assessment or re- assessment of connected entities

Section 144BA(12): Orders passed with the prior approval of Principal Commissioner or Commissioner

(ha) an order made under section 201;

Section 201: Consequences of failure to deduct or pay.

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

Section 206C(6A): Failure to collect or deposit TCS

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

CHAPTER XXI: Penalties Imposable

4.2 Excluded from JCIT(A)

1. Appeals against assessment orders passed before 13.08.2020 (Date of Introduction of Faceless Assessment Scheme, 2019) under sub-section (3) of section 143 or section 144 of the Act, having disputed demand more than Rs. 10 Lakh.
2. Appeals related to:
   1. assessment orders passed with respect to cases pertaining to jurisdiction of Commissioner of Income-tax (Central).
   2. assessments completed in pursuance of search under section 132 or requisition under section 132A of the Act.
      • Section 132 – Search and seizure.
        Section 132A – Powers to requisition books of account, etc.
   3. assessments completed in pursuance of any action under section 133A of the Act.
      • Section 133A – Power of survey.
   4. assessments where addition/variation in income is made on the basis of seized/ impounded material.
3. Appeals in cases pertaining to the jurisdiction of Commissioner of Income-tax (International Taxation).
4. Appeals against the penalty orders passed before 12.01.2021 (date of introduction of Faceless Penalty Scheme, 2021) with respect to cases referred to in category (i), having disputed demand of more than Rs. 10 lakh.
   • Category (i) Appeals against assessment orders passed before 13.08.2020 (Date of Introduction of Faceless Assessment Scheme, 2019) under sub- section (3) of section 143 or section 144 of the Act, having disputed demand more than Rs. 10 Lakh.
5. Appeals against the penalty orders passed in categories of cases mentioned in point 1 to 4 of (ii) and of (iii) above.
   • Point (ii)
     1. assessment orders passed with respect to cases pertaining jurisdiction of Commissioner of Income-tax (Central).
     2. assessments completed in pursuance of search under section 132 or requisition under section 132A of the Act.
     3. assessments completed in pursuance of any action under section 133A of the Act.
     4. assessments where addition/variation in income is made on the basis of seized/ impounded material.
   • Point (iii)
     Appeals in cases pertaining to the jurisdiction of Commissioner of Income-tax (International Taxation).
6. Appeals against assessments orders passed on or after 12.09.2019 (date of introduction of E- Assessment Scheme, 2019) under the e- Assessment Scheme, 2019 or the Faceless Assessment Scheme, 2019 or under section 144B of the Act.
   • Section 144B – Faceless Assessment
7. Appeal against penalty orders passed on or after 12.01.2021 under the Faceless penalty Scheme, 2021.

For the purpose of this order, “disputed demand” means

(i) the difference between the tax on total income assessed and the tax on the returned income, if filed;

(ii) tax on total income assessed where no return has been filed;

(iii) for a penalty order, the amount of penalty imposed under Chapter XXI of the Act; and

(iv) demand raised vide notice under section 156 or intimation issued under sub-section (1) of section 143 or under sub-section (1) of section 200A or under sub-section(1) of section 206CB, in any other case; The disputed demand shall include applicable interest, surcharge & cess.

5. Income Tax (Sixth Amendment) Rules, 2023 vide CBDT Notification dated 29.05.2023

G.S.R. 396(E).—In exercise of powers conferred by sub-section (1) of section 249 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. Short title and commencement —

(1) These rules may be called Income-tax (Sixth Amendment) Rules, 2023.

(2) They shall come into force from the date of its publication in the Official Gazette.

2. In the Income-tax Rules, 1962 —

(I) In rule 45 —

(A) in the marginal heading, for the words and brackets “Commissioner (Appeals)”, the words and brackets “Joint Commissioner (Appeals) or Commissioner (Appeals)” shall be substituted;

(B) in sub-rule (1), for the words and brackets “Commissioner (Appeals)”, the words and brackets “Joint Commissioner (Appeals) or the Commissioner (Appeals)” shall be substituted;

(II) In rule 46A —

(A) in the marginal heading, for the words “Deputy Commissioner”, the words “Joint Commissioner” shall be substituted;

(B) for the words “Deputy Commissioner” wherever they occur, the words “Joint Commissioner” shall be substituted;

(III) In Appendix-II, in FORM NO. 35,—

(A) in the heading, before the words “Commissioner of Income-tax”, the words and brackets “Joint Commissioner (Appeals) or the” shall be inserted;

(B) before the word “Commissioner” wherever they occur, the words and brackets “Joint Commissioner (Appeals) or” shall be inserted.

6. Appointment of JCIT (Appeals) – List

7. Form 35 (Amended)