Background
Section 246(5) of the Income-tax Act, 1961 (IT Act) grants power to Central Government to make a scheme so as to dispose of appeals expediently with transparency and accountability, by eliminating the interface between the Joint Commissioner of Income-tax (Appeals) (JCIT(A)) and taxpayer, in the course of appellate proceedings to the extent technologically feasible. In this regard, the Central Board of Direct Taxes (CBDT) had notified the e-Appeals Scheme, 2023 (the Scheme) for JCIT(A). Further, section 246(6) of the IT Act empowers the CBDT to specify cases or cases to which the provisions of the Scheme shall not apply. In this regard, recently, the CBDT vide an order has specified the cases where the provisions of the Scheme shall not apply. We have hereunder analysed and summarised the said order:
The Scheme shall not apply in the following cases:
1.Appeals against orders passed before 13 August 2020 under section 143(3) or section 144 of the IT Act, having disputed demand more than INR 1mn.
2.Appeal against the penalty order passed before 12 January 2021 with respect to point 1 above.
3.Appeals related to:
(i)Orders passed with respect to cases pertaining to the jurisdiction of the Commissioner of Income-tax (Central).
(ii)Assessments completed in pursuance of search under section 132 or requisition under section 132A of the IT Act.
(iii)Assessments completed in pursuance of any action under section 133A of the IT Act.
(iv)Assessments where addition/ variation in income is made based on seized/ impounded material.
4.Appeals in cases pertaining to the jurisdiction of the Commissioner of Income-tax (International Taxation).
5.Appeals against the penalty orders passed in categories of cases mentioned in points 3 and 4 above.
6.Appeals against the orders passed on or after 12 September 2019 under the e-assessment scheme, 2019 or the Faceless Assessment Scheme, 2019 or under section 144B of the IT Act.
7.Appeal against the penalty orders passed on or after 12 January 2021 under the Faceless Penalty Scheme, 2021.
All the appeals other than points 1 to 7 above under section 246 and/ or under clauses (a), (b), (c), (ha), (hb), (q) of section 246A(1) of the IT Act, shall be completed as per the provisions of the Scheme.
Our Comments:
The CBDT notified the Scheme to be effective from 29 May 2023. However, the scope of the scheme was yet to be provided. With the scope being issued now, it will provide taxpayers with much-needed clarity with respect to the applicability of the Scheme and shall expedite the disposal of their pending matters.
