Amended and updated notes on section 250 of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Procedure in appeal.
Chapter XX (Sections 246 to 269) of the Income Tax Act 1961 deals with the provisions related to appeals and revision . Section 250 of IT Act 1961 provides for Procedure in appeal.
Recently, we have discussed in detail section 249 (Form of appeal and limitation) of IT Act 1961. Today, we learn the provisions of section 250 of Income-tax Act 1961. The amended provision of section 250 is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 250 of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.
Section-250: Procedure in appeal
Section 250(1) of Income Tax Act
The Commissioner (Appeals) shall fix a day and place for the hearing of the appeal, and shall give notice of the same to the appellant and to the Assessing Officer against whose order the appeal is preferred.
Section 250(2) of Income Tax Act
The following shall have the right to be heard at the hearing of the appeal—
- (a) the appellant, either in person or by an authorised representative;
- (b) the Assessing Officer, either in person or by a representative.
Section 250(3) of Income Tax Act
The Commissioner (Appeals) shall have the power to adjourn the hearing of the appeal from time to time.
Section 250(4) of Income Tax Act
The Commissioner (Appeals) may, before disposing of any appeal, make such further inquiry as he thinks fit, or may direct the Assessing Officer to make further inquiry and report the result of the same to the Commissioner (Appeals).
Section 250(5) of Income Tax Act
The Commissioner (Appeals) may, at the hearing of an appeal, allow the appellant to go into any ground of appeal not specified in the grounds of appeal, if the Commissioner (Appeals) is satisfied that the omission of that ground from the form of appeal was not wilful or unreasonable.
Section 250(6) of Income Tax Act
The order of the Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision.
Section 250(6A) of Income Tax Act
In every appeal, the Commissioner (Appeals), where it is possible, may hear and decide such appeal within a period of one year from the end of the financial year in which such appeal is filed before him under sub-section (1) of section 246A.
Section 250(6B) of Income Tax Act
The Central Government may make a scheme, by notification in the Official Gazette, for the purposes of disposal of appeal by Commissioner (Appeals), so as to impart greater efficiency, transparency and accountability by—
- (a) eliminating the interface between the Commissioner (Appeals) and the appellant in the course of appellate proceedings to the extent technologically feasible;
- (b) optimising utilisation of the resources through economies of scale and functional specialisation;
- (c) introducing an appellate system with dynamic jurisdiction in which appeal shall be disposed of by one or more Commissioner (Appeals).
[Sub-section (6B) of section 250 has been substituted w.e.f. 01.04.2020 by the Finance Act 2020]
Section 250(6C) of Income Tax Act
The Central Government may, for the purposes of giving effect to the scheme made under sub-section (6B), by notification in the Official Gazette, direct that any of the provisions of this Act relating to jurisdiction and procedure for disposal of appeals by Commissioner (Appeals) 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.
[Sub-section (6C) of section 250 has been substituted w.e.f. 01.04.2020 by the Finance Act 2020]
Section 250(6D) of Income Tax Act
Every notification issued under sub-section (6B) and sub-section (6C) shall, as soon as may be after the notification is issued, be laid before each House of Parliament.
[Sub-section (6D) of section 250 has been substituted w.e.f. 01.04.2020 by the Finance Act 2020]
Section 250(7) of Income Tax Act
On the disposal of the appeal, the Commissioner (Appeals) shall communicate the order passed by him to the assessee and to the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner.