[Section 246A]: Appealable Orders Before Commissioner (Appeals)

Under Section 246A of the Income Tax Act, 1961, taxpayers can file an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)] against certain orders passed by income tax authorities.

1. Orders Appealable Under Section 246A

An appeal lies to the CIT(A) against the following orders:

1. Orders Passed by Assessing Officer (AO) [Section 246A(1)]
2. Assessment Orders(Section 143(3), 144, 147, 153A, etc.)

• • Regular assessment, best judgment assessment, or reassessment orders.

2. Penalty Orders(Sections 270A, 271, 271A, 271B, 271C, etc.)

• • Penalties for concealment, non-compliance, or TDS/TCS defaults.

3. Intimation under Section 143(1)(if adjustments are made)

• • Disputed adjustments in intimation (e.g., incorrect tax credit).

4. Order under Section 201(1) or 201(1A)(TDS/TCS default)

• • Dispute over being treated as an “assessee in default.”

5. Order under Section 206C(6A)(TCS default)
6. Orders Passed by Joint/Additional Commissioner [Section 246A(2)]

• • If an order is passed by a Joint Commissioner (JCIT)or Additional Commissioner (Addl. CIT), an appeal lies before CIT(A).

1. Other Appealable Orders

• • Section 154(Rectification order, if it adversely affects the assessee).
  • Section 163(Treating a person as an agent of a non-resident).
  • Section 170(Succession/business reorganization disputes).

2. Non-Appealable Orders (Exceptions)

• Orders where appeal lies directly to ITAT(e.g., transfer pricing orders under Section 92CA).
• Orders passed by Principal Commissioner/Commissioner under Section 263 (Revision)– Appeal lies to ITAT, not CIT(A).

3. Time Limit for Filing Appeal

• 30 daysfrom the date of the order (extendable up to 1 year with sufficient cause).
• Form 35must be filed electronically.

4. Key Points

• First Appellate Authority: CIT(A) is the first level of appealagainst AO’s orders.
• Stay on Demand: Filing an appeal may stay tax recovery(subject to conditions).
• Enhancement Power: CIT(A) can enhancethe assessment if new issues arise.

5. Practical Considerations

• Grounds of Appeal: Must be clearly stated in Form 35.
• Documents Required: Copy of the disputed order, computation of income, and supporting evidence.
• Departmental Appeals: Income Tax Department can also appeal against certain orders (e.g., penalty waiver).