Remedy Available Against the Order of The Commissioner (Appeals)/Revision Orders Of CIT

Under the Income Tax Act, 1961, taxpayers have several remedies against orders passed by the Commissioner of Income Tax (Appeals) [CIT(A)] or revision orders by the Commissioner of Income Tax (CIT) under Sections 263/264. Here’s a structured overview:

1. Appeal to the Income Tax Appellate Tribunal (ITAT) [Section 253]

• Applicability: An appeal lies before the ITAT against:
  • Orders of CIT(A) under Sections 250, 271, 271A, etc.
  • Revision orders under Section 263(CIT’s revision for revenue’s interest) or Section 264 (revision for assessee’s relief).
• Time Limit: 60 days from the date of communication of the order.
• Procedure: File Form 36with supporting documents (e.g., assessment order, grounds of appeal).
• Key Points:
  • ITAT is the final fact-finding authority.
  • No new evidence can be submitted unless the Tribunal directs.
  • Monetary limits apply for departmental appeals (e.g., Rs. 60 lakh tax effect for ITAT appeals).

2. Appeal to the High Court [Section 260A]

• Applicability: Only if a substantial question of lawarises from ITAT’s order.
• Time Limit: 120 days from ITAT’s order.
• Procedure: File a memorandum of appeal with the High Court.
• Key Points:
  • High Court may admit the appeal if the question is novel or impacts revenue/assessee significantly.
  • Examples include disputes over legal interpretations (e.g., applicability of a tax exemption).

3. Appeal to the Supreme Court [Section 261]

• Applicability: Against High Court’s order, with leave of the High Court or via Special Leave Petition (SLP)under Article 136 of the Constitution.
• Scope: Limited to cases involving national importance or conflicting judgments.

4. Writ Jurisdiction (Article 226/227 of the Constitution)

• Applicability: If the order violates natural justiceor is patently illegal.
  • Example: CIT(A) denies a hearing, or CIT exceeds revisionary powers under Section 263/264.
• Key Points:
  • Direct approach to High Court, bypassing ITAT.
  • Used when no alternative remedyis effective (e.g., jurisdictional errors).

5. Revision by CIT Under Section 264

• For Assessees: If CIT(A)’s order is erroneous but not prejudicial to revenue, the assessee can apply for revision within 1 yearof the order.
  • CIT can grant relief but cannot enhance liability.
  • No appeal against CIT’s order; only writ petitions are viable.

6. Key Differences Between Appeals and Revisions

7. Practical Considerations

• Appeals vs. Revisions: Appeals are generally preferred over revisions due to structured judicial scrutiny.
• Doctrine of Merger: If an order is appealed, CIT cannot revise it under Section 263 (as held in ITAT quashes CIT’s revision order).
• Delay Condonation: Possible for appeals/revisions with “sufficient cause”