Section 253 of Income Tax Act "Appeals to the Appellate Tribunal"
253. (1) Any assessee aggrieved by any of the following
orders may appeal to the Appellate Tribunal against such
order-
(a) an order passed by a Deputy Commissioner (Appeals)
before the 1st day of October, 1998 or, as the case may be,
a Commissioner (Appeals) under section 154, section 250,
section 270A, section 271, section 271A, section 271J or
section 272A; or
(b) an order passed 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, after the 30th day
of June, 1995, but before the 1st day of January, 1997; or
(ba) an order passed by an Assessing Officer under
sub-section (1) of section 115VZC; or
(c) an order passed by a Principal Commissioner or
Commissioner 6a[7[under section 12AA]] or under clause (vi)
of sub-section (5) of section 80G or under section 263 or
under section 270A or under section 271 or under section
272A or an order passed by him under section 154 amending
his order under section 263 or an order passed by a
Principal Chief Commissioner or Chief Commissioner or a
Principal Director General or Director General or a
Principal Director or Director under section 272A; or
(d) an order passed by an Assessing Officer under
sub-section (3), of section 143 or section 147 or section
153A or section 153C in pursuance of the directions of the
Dispute Resolution Panel or an order passed under section
154 in respect of such order;
(e) an order passed by an Assessing Officer under
sub-section (3) of section 143 or section 147 or section
153A or section 153C with the approval of the Principal
Commissioner or Commissioner as referred to in sub-section
(12) of section 144BA or an order passed under section 154
or section 155 in respect of such order;
(f) an order passed by the prescribed authority under
sub-clause (iv) or sub-clause (v) or sub-clause (vi) or
sub-clause (via) of clause (23C) of section 10.
(2) The Principal Commissioner or Commissioner may, if he
objects to any order passed by a Deputy Commissioner
(Appeals) before the 1st day of October, 1998 or, as the
case may be, a Commissioner (Appeals) under section 154 or
section 250, direct the Assessing Officer to appeal to the
Appellate Tribunal against the order.
(2A) [***]
(3) Every appeal under sub-section (1) or sub-section (2)
shall be filed within sixty days of the date on which the
order sought to be appealed against is communicated to the
assessee or to the Principal Commissioner or Commissioner,
as the case may be :
Provided that in respect of any appeal under clause (b) of
sub-section (1), this sub-section shall have effect as if
for the words "sixty days", the words "thirty days" had been
substituted.
(3A) [***]
(4) The Assessing Officer or the assessee, as the case may
be, on receipt of notice that an appeal against the order of
the Commissioner (Appeals), has been preferred under
sub-section (1) or sub-section (2) by the other party, may,
notwithstanding that he may not have appealed against such
order or any part thereof, within thirty days of the receipt
of the notice, file a memorandum of cross-objections,
verified in the prescribed manner, against any part of the
order of the Commissioner (Appeals), and such memorandum
shall be disposed of by the Appellate Tribunal as if it were
an appeal presented within the time specified in sub-section
(3).
(5) The Appellate Tribunal may admit an appeal or permit the
filing of a memorandum of cross-objections after the expiry
of the relevant period referred to in sub-section (3) or
sub-section (4), if it is satisfied that there was
sufficient cause for not presenting it within that period.
(6) An appeal to the Appellate Tribunal shall be in the
prescribed form and shall be verified in the prescribed
manner and shall, in the case of an appeal made, on or after
the 1st day of October, 1998, irrespective of the date of
initiation of the assessment proceedings relating thereto,
be accompanied by a fee of,-
(a) where the total income of the assessee as computed by
the Assessing Officer, in the case to which the appeal
relates, is one hundred thousand rupees or less, five
hundred rupees,
(b) where the total income of the assessee, computed as
aforesaid, in the case to which the appeal relates is more
than one hundred thousand rupees but not more than two
hundred thousand rupees, one thousand five hundred rupees,
(c) where the total income of the assessee, computed as
aforesaid, in the case to which the appeal relates is more
than two hundred thousand rupees, one per cent of the
assessed income, subject to a maximum of ten thousand
rupees,
(d) where the subject matter of an appeal relates to any
matter, other than those specified in clauses (a), (b) and
(c), five hundred rupees:
Provided that no fee shall be payable in the case of an
appeal referred to in sub-section (2), or, sub-section (2A)
as it stood before its amendment by the Finance Act, 2016,
or, a memorandum of cross objections referred to in
sub-section (4).
(7) An application for stay of demand shall be accompanied
by a fee of five hundred rupees.
7a[(8) The Central Government may make a scheme, by
notification in the Official Gazette, for the purposes of
appeal to the Appellate Tribunal under sub-section (2), so
as to impart greater efficiency, transparency and
accountability by-
(a) optimising utilisation of the resources through
economies of scale and functional specialisation;
(b) introducing a team-based mechanism for appeal to the
Appellate Tribunal, with dynamic jurisdiction.
(9) The Central Government may, for the purpose of giving
effect to the scheme made under sub-section (8), by
notification in the Official Gazette, direct that any of the
provisions of this Act shall not apply or shall apply with
such exceptions, modifications and adaptations as may be
specified in the notification:
Provided that no direction shall be issued after the 31st
day of March, 2022.
(10) Every notification issued under sub-section (8) and
sub-section (9) shall, as soon as may be after the
notification is issued, be laid before each House of
Parliament.]
254. (1) The Appellate Tribunal may, after giving both
the parties to the appeal an opportunity of being heard,
pass such orders thereon as it thinks fit.
(1A) [***]
(2) The Appellate Tribunal may, at any time within six
months from the end of the month in which the order was
passed, with a view to rectifying any mistake apparent from
the record, amend any order passed by it under sub-section
(1), and shall make such amendment if the mistake is brought
to its notice by the assessee or the Assessing Officer :
Provided that an amendment which has the effect of enhancing
an assessment or reducing a refund or otherwise increasing
the liability of the assessee, shall not be made under this
sub-section unless the Appellate Tribunal has given notice
to the assessee of its intention to do so and has allowed
the assessee a reasonable opportunity of being heard :
Provided further that any application filed by the assessee
in this sub-section on or after the 1st day of October,
1998, shall be accompanied by a fee of fifty rupees.
(2A) In every appeal, the Appellate Tribunal, where it is
possible, may hear and decide such appeal within a period of
four years from the end of the financial year in which such
appeal is filed under sub-section (1) or sub-section (2) of
section 253 :
Provided that the Appellate Tribunal may, after considering
the merits of the application made by the assessee, pass an
order of stay in any proceedings relating to an appeal filed
under sub-section (1) of section 253, for a period not
exceeding one hundred and eighty days from the date of such
order 8[subject to the condition that the assessee deposits
not less than twenty per cent of the amount of tax,
interest, fee, penalty, or any other sum payable under the
provisions of this Act, or furnishes security of equal
amount in respect thereof] and the Appellate Tribunal shall
dispose of the appeal within the said period of stay
specified in that order:
9[Provided further that no extension of stay shall be
granted by the Appellate Tribunal, where such appeal is not
so disposed of within the said period of stay as specified
in the order of stay, unless the assessee makes an
application and has complied with the condition referred to
in the first proviso and the Appellate Tribunal is satisfied
that the delay in disposing of the appeal is not
attributable to the assessee, so however, that the aggregate
of the period of stay originally allowed and the period of
stay so extended shall not exceed three hundred and
sixty-five days and the Appellate Tribunal shall dispose of
the appeal within the period or periods of stay so extended
or allowed:]
Provided also that if such appeal is not so disposed of
within the period allowed under the first proviso or the
period or periods extended or allowed under the second
proviso, which shall not, in any case, exceed three hundred
and sixty-five days, the order of stay shall stand vacated
after the expiry of such period or periods, even if the
delay in disposing of the appeal is not attributable to the
assessee.
(2B) The cost of any appeal to the Appellate Tribunal shall
be at the discretion of that Tribunal.
(3) The Appellate Tribunal shall send a copy of any orders
passed under this section to the assessee and to the
Principal Commissioner or Commissioner.
(4) Save as provided in section 256 or section 260A, orders
passed by the Appellate Tribunal on appeal shall be final.